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Ukraine - Minimum Wages - 2011


LAST UPDATE

11 May 2011

SOURCES


Name of Act

Act on the State budget of the Ukraine for 2011, Bulletin of the Verkhovna Rada of Ukraine (VVR), 2011, No. 7-8, p. 52

Name of Act

Act on Wages, (ЗАКОН УКРАЇНИ Про оплату праці), of 24 March 1995. Vedomosti Verkhovnogo Soveta, 1995-04-25, No. 17, pp. 376-384, as amended up to Law No. 2559-VI (2559-17) dated 23 September 2011.

Name of Act

Labour Code, of 1972, as amended up to Law No. N 1276-VI (1276-17) vom 16.04.2009, VVR, 2009, N 38, st.535

Name of Act

Code on Administrative Penalties (Кодекс України про адміністративні правопорушення), Bulletin of the Verkhovna Rada of Ukrainian SSR (BVR), 1984, addition to No. 51, p. 1122, as amended up to No. 1708-VI ( 1708-17 ) of 5 November 2009

LEGAL DEFINITIONS


Wage

The wage is a remuneration calculated in monetary terms and that is to be paid by the employer to the employee according to a labour contract for the work performed by such employee.
Act on Wages §1

Minimum wage

Amount of wage established by law for the performance of a simple, unskilled labour. No wage may be lower than such minimum wage. The minimum wage does not include bonuses, allowances, incentive and compensation payments.
Labour Code §95
Act on Wages §3

MINIMUM WAGE FIXING


Procedure


Government decides after consultation of the social partners

The amount of the minimum wage is set by the Supreme Council of the Ukraine (the Ukrainian parliament), following the recommendation of the Cabinet of Ministers of the Ukraine, during the yearly adoption of the state budget, under consideration of proposals as agreed between representatives of trade unions, employers, or organs authorized by them, that unified for the conduct of collective negotiations and conclusion of a general agreement.
Act on Wages §10

Minimum wage set through decentralized collective bargaining

Wage rates may be fixed by collective agreements.
Only in case of financial difficulties of the enterprise, the minimum wage can be fixed by collective agreement at a lower level than the national minimum wage for a period not exceeding six months.
Act on Wages §14

Criteria


Needs of workers and their families

Yes.
Act on Wages §9

Cost of living

Yes. The amount of minimum wage shall be established taking into account the cost of living (minimum set of health products, food and basic social and cultural needs of the individual).
Act on Wages §9

Level of wages and incomes in the country

Yes. The amount of minimum wage shall be established taking into account level of the average wage.
Act on Wages §9

Productivity

Yes.
Act on Wages §9

Level of employment

Yes.
Act on Wages §9

Other provisions

The minimum wage is set in amount no lower than the poverty level as determined for an able-bodied person.
Act on Wages §9, 10

Coverage


Scope

The Law covers all workers engaged in a labour relationship on the basis of a labour contract with enterprises, establishments, and organisations with all forms of ownership and management, as well as with individual citizens.
Labour Code §95
Act on Wages (Preamble)

Specific minimum wage rates


» Specific minimum wage by occupation

No.

» Specific minimum wage by sector

No.
Labour Code see §95
Act on Wages see §3

» Specific minimum wage by region

No. The minimum wage is mandatory throughout the territory of the Ukraine.
Labour Code §95
Act on Wages §3

Level


Minimum wage level(s) in national currency

from 1 January 2011: 941 UAH
from 1 April 2011: 960 UAH
from 1 October 2011: 985 UAH
from 1 December 2011: 1044 UAH per month
Act on the State budget of Ukraine for 2011 §22

Last minimum wage update

effective from 1 January 2011
Act on the State budget of Ukraine for 2011 §22

In-kind allowances

The wages of workers of enterprises on the territory of Ukraine shall be paid in the legal tender of the Ukraine. Payment in the form of debt commitments and receipts or in any other form shall be prohibited.

A collective agreement, by way of exception, may stipulate payment of certain part of wages in kind (according to the price not exceeding production cost) in an amount not exceeding 30 per cent of the monthly wage. These payments shall be equivalent to payments in a monetary form, and shall be usual and desirable from the employees’ point of view. Cabinet of Ministers of Ukraine shall approve the list of the commodities that may not be used for in-kind payments.
Act on Wages §23

Rate of payment


» Hourly

from 1 January 2011: 5.66 UAH
from 1 April 2011: 5.77 UAH
from 1 October 2011: 5.92 UAH
from 1 December 2011: 6.04 UAH per month
Act on the State budget of Ukraine for 2011 §22

» Monthly

from 1 January 2011: 941 UAH
from 1 April 2011: 960 UAH
from 1 October 2011: 985 UAH
from 1 December 2011: 1044 UAH per month
Act on the State budget of Ukraine for 2011 §22

» Other

Wages are paid to workers regulary on work days by the deadline established in the collective contract, but not less frequently than twice a month at an interval of time not exceeding 16 calendar days.
Act on Wages §24

Scheduled frequency of adjustment

The amount of the minimum wage shall be established by the law at least once a year, in the course of approval of the State Budget of the Ukraine.
Act on Wages §10

Enforcement mechanisms


Labour inspection

The control conerning the observance of wage legislation is carried out by the Ministry of Labour of the Ukraine, financial organs, organs of the State Tax Inspectorate and Trade unions and other organisations representing the interests of employees. Top level monitoring of the observance of legislation on payment of wages is carried out by the Procurator General of the Ukraine.
Act on Wages §35

Fines in national currency for non-respect of legislation

Individuals violating legislation concerning the payment of wages face disciplinary, material, administrative, or criminal liability in accordance with existing legislation. Employers who failing to pay the stipulated minimum wage rate are liable to a fine of between 30-100 times the minimum wages.
Act on Wages §36
Code on Administrative Penalties §41

Results generated on: 25th July 2014 at 15:41:32.
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