Raise in minimum wage to UAH 3,200 in 2017 won't cause inflation, price hikes

16:15, 26.10.2016 1 min read

Deputy Prime Minister of Ukraine Pavlo Rozenko has said the raising of minimum wages in 2017 to UAH 3,200 will not entail inflation and a rise in prices.

"The balance of the national budget will not be changed, the budget will be balanced, and i.e. these are not inflationary funds, not printed money. These are the funds the economy gives, they are fixed in the national budget and will not lead to higher prices," Rozenko told reporters after a cabinet meeting on Wednesday.

He added that due to the increase in minimum wages both for the public and private sectors the deficit of the Pension Fund will reduce. He noted the total amount of expenses required for raising minimum wage will be published together with the draft national budget for 2017 in two weeks.

As reported, Prime Minister Volodymyr Groysman at a cabinet meeting on October 26 said the Cabinet of Ministers initiates raising the minimum wage in Ukraine to UAH 3,200 and intends to put the relevant norm to the draft national budget for 2017. At the same time, the living wage will be also raised to UAH 3,200 in Ukraine.