Improved national normative framework to protect wages in Ukraine

The overall objective of the project is to protect wages by improving the national normative framework through social dialogue. It is expected that by the end of the intervention, tripartite constituents would have agreed on the measures to address the issues of wages (wage arrears, minimum wage and equal pay) and started their implementation.

The Ukrainian economy suffered a setback in 2014-2015 because of the armed conflict. The GDP declined by 16 % and is not yet back to the pre-crisis level of 2012. The wage arrears amount to 95 Mio USD (Sept 2018) mostly in industry, transport and communications, and construction. The number of workers who have not received their wages on time was 265,800, equivalent to 3.3% of the total workforce as of July 2015 (latest data available).

The principles of social dialogue are not effectively incorporated into the mechanism of defining the minimum wage level. The other concern related to the minimum wage fixing is that the subsistence minimum as defined by the public sector wage grid is lower than the minimum wage. The gender pay gap in Ukraine was at around 21% in 2018, which is higher than in most EU countries (EU average: 16%).

The main aim of the ILO intervention is to protect wages by improving the national normative framework through social dialogue.

The project has three components: wage arrears, minimum wage and equal pay. The three-pronged intervention strategy is built to provide evidence, such as analysis of the causes of problems, experience of what works e.g. in Eastern Europe and review of relevant legislation related to compliance with international labour standards. The intervention will also build capacity of social partners. Another aim is to facilitate tripartite discussions to reach an agreement on the possible package of measures to address the wage arrears, establish a minimum wage fixing mechanism and amend the legislation to ensure equal pay for work of equal value.

The project provides technical support in the framework of the Decent Work Country Programme for Ukraine (2016-2019).