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 IMF Memorandum demands freezing minimum wage for three years, - Reva

The government is allowed to increase pension payments but cannot raise salaries.

The IMF Memorandum stipulates for freezing the level of the minimum wages for three years, which may cause a deficit of the Pension Fund, Censor.NET reports. This was said by Social Policy Minister Andrii Reva in an interview with Realist.

"If we increase minimum pension payment by 10 percent this year, we need to raise the minimum wages by at least 15 percent. What do we see in the Memorandum draft? Freeze the wages for three years. What does this mean? It means that minimum pension payment will increase, but the pension tax will drop. We will again increase the Pension Fund deficit, and that's what the IMF reprimands us for. Guys, please explain me this phenomenon. But no answer," Reva said.

Read more: To receive retirement payments, Ukrainians have to earn it: reaching 60 is no longer enough, - Social Policy Minister Reva

Effective Jan. 1, 2017, the minimum monthly wages in Ukraine was set at 3,200 hryvnia ($118). The National Bank says that due to the increase, a 9.1-percent inflation is expected this year.
 
 
 
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