Since 2014, the standard of living in Ukraine has been falling sharply. The cost of living, approved by the government for 2016, clearly does not correspond to the amount of money that is necessary to satisfy the most minimal needs of citizens.
"On a living wage"
Today, the Law on Living Wage adopted by the Supreme Council of Ukraine (dated July 15, 1999 No. 966-14), which establishes the basic principles for the formation of a living wage (SM) as the monetary equivalent of the price of a minimum set of products for a month, as well as a certain amount of non-food goods and services for citizens. In Ukraine, the subsistence minimum for today is less than 1,500 hryvnias.
That is, in the minimum consumer basket, contrary to the opinion of many, food products do not have an exclusive place. Non-food items usually include clothing and utensils, electrical equipment. Central executive bodies establish standards that simply degrade the dignity of their own citizens. The range of services includes the satisfaction of the most basic needs by citizens in terms of providing living space, organizing the surrounding life (buying things), using transport (paying for travel), the ability to attend educational and medical institutions, guaranteeing compliance with social standards for the use of utilities (gas, water, heat, garbage disposal, etc.).
What is the cost of living in Ukraine?
We will analyze the dynamics of PM growth in the state since 2010 (the time when President Viktor Yanukovych came to power). Between 2010 and 2012 inclusive, the minimum figure increased every year. This method of increasing the level of satisfaction of the minimum demands of citizens is characterized as the progressive and systematic development of the well-being of citizens.
For example, in 2010 the growth was 4 times (from UAH 825 to UAH 875). Note that 875 UAH. in the early 2010s were a pretty good amount. In 2011, the cost of living in Ukraine also increased 4 times and grew over the year to 953 UAH. In 2012, the trend continued (increase occurred 5 times to 1095 UAH.). 2013 brought some deterioration in the economic situation in the country. The minimum has changed only twice and reached the indicator 1176 UAH. During the four years of the reign of President Yanukovych, the price of the minimum living basket increased by 351 UAH. Of course, it was hard for people to live on 1,176 hryvnias, but, in principle, the population was comfortable with such a living wage.
Ukraine did not change the PM value until August 31, 2015. It was during this period after the revolution that mass impoverishment of the majority of the country's citizens occurred.
What has changed in 2016
The Law of Ukraine "On the state budget for 2016" provides for a gradual (started in August 2015) increase in PM and bringing it in December 2016 to the figure of 1496 UAH. The mistake of the economic bloc of government consists in violating the principle of gradualism.
Consider a breakdown of minimum indicators for different categories of the population as of May 1, 2016. So, the total figure is 1399 UAH. The minimum needs of children under the age of 6 can be met for UAH 1228, according to the government, children from 6 to 18 years - for UAH 1,531, able-bodied people - for UAH 1,450, and disabled people - for UAH 1,130, which even medicine in some cases is not enough.
Here is such a living wage in Ukraine today.