Minimum wage increase not to trigger inflation – finance minister

10:12, 31.10.2016 1 min read

Minimum wage in Ukraine will be increased without an additional growth of inflation, Finance Minister of Ukraine Oleksandr Danyliuk has said.

"There will not be [higher] inflation [than it is projected]… This decision [to increase minimum wage] will not affect inflation next year," Danyliuk said late on Sunday on 1+1 television.

Asked where the government will take funds to pay the increased minimum wages, he said that this will happen thanks to bringing the economy out of the shadows.

"You should understand where the funds will be taken. These funds are in the shadows now. They are paid backdoor. These funds will be legalized and enter the system as officially declared salaries and taxes. This means that there will not be additional money supply," he said.

As reported, Ukrainian Prime Ministers Volodymyr Groysman and Ukrainian President Petro Poroshenko announced the increase of minimum wage in Ukraine on January 1, 2017 to UAH 3,200.