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Living on income: What is the difference between salaries of Ukrainian and European officials?

Author : Olexandr Yaroshchuk

19:04, 9 August 2016
Living on income: What is the difference between salaries of Ukrainian and European officials?

Author : Olexandr Yaroshchuk

Is it true that Ukrainian ministers earn less than nearly any other minister in the world? Why there's such a big difference and how can it be explained?

19:04, 9 August 2016

Read the original text at eurointegration.com

kpravda.com

For three months already Ukrainian officials have received the new salaries: from May, 1 has come into force the new law on civil service, which significantly redrew the order and logic of salaries calculation. How much would earn Ukrainian officials from now and how different their salaries are from the wages of officials from other countries?

Is it true that Ukrainian ministers earn less than nearly any other minister in the world? Why Culture Minister earns almost twice as much as Defense Minister, and how salaries of ministers are charged today? In particular, the Minister of Culture Yevgen Nyschuk needs to work a little less than a month to make money for a new iPhone, the head of the Ministry of Agrarian Policy Taras Kutovyi needs 2.5 months. In comparison, their colleagues from the US government will work for 2 days to earn money for buying such smartphone.

New salaries

The data suggest that civil service reform has led to changes in labor remuneration of the state employees, but left significant disparities in wages of various ministers. The highest paid member of the government today is Prime Minister Volodymyr  Groisman. According to VoxUkraine data, received in response to a request to the Secretariat of the Cabinet of Ministers of Ukraine, the head of the Cabinet in June 2016 year earned 28 thousand UAH (almost  1130 USD). By the way, Groisman's predecessor - the former head of government Arseniy Yatsenyuk received about 25 000 UAH (1000 USD).

Vice Prime Ministers earn slightly less. For example, in June 2016, according to the Secretariat of the Cabinet of Ministers, Deputy Prime Minister for European and Euroatlantic integration Ivanna Klympush-Tsintsadze earned 23 981.07 UAH (966,21 USD). Approximately the same, on average, earns First Vice Prime Minister of Ukraine - Minister of Economic Development and Trade Stepan Kubiv, Minister of Ukraine Oleksandr Sayenko, Deputy Prime Minister Volodymyr Kistion.

Groysman jacked up salaries of MPs by 3 times with his most recent order

Less than their colleagues earn Vyacheslav Kyrylenko and Gennadiy Zubko. And most of all deputy prime ministers, to our knowledge, earns Deputy Prime Minister Pavlo Rozenko - about 26 000 UAH per month. The situation is similar with the ministers, they earn variously: from almost 20 000 UAH (Minister of Culture, Youth and Sports Minister) to slightly more than 7 000 UAH (Defence Minister,  Minister of Agriculture and Food).

Somewhat illogical situation applies to deputy ministers. First, some deputies get more than their immediate superiors. For example, if the salary of Minister of agrarian and industrial complex is 7245 UAH, his deputies earn already 11 094 UAH each. Instead even more differ salaries in the Ministry of Foreign Affairs of Ukraine - Minister receives 11 400 UAH, his deputy - 20 400 UAH.

A certain degree of irrationality is present in the calculation of directors of departments’ wages. The most highly paid such a position is at the Ministry of Economic Development and Trade of Ukraine. There you can earn 24 000 UAH. At the same time, it is most ministries salaries differ from 12 to 15 000 UAH. Overall, the salaries in government and ministries vary considerably. The difference between the head of government and the least paid minister reaches 300%. This disparity may have an explanation. According to the law on civil service, that we have already mentioned, the final salary amount has several  components - base salary, bonuses, years of work, government official rank, additional duties at work.

Salary of Ukrainian official must be at least 100,000 UAH

How much earn ministers abroad?

Disappointing conclusion for Ukrainian civil servants of the highest rank - they earn the least among all ministers of developed and developing countries. But as stated above, the ratio of income of Ministers to the minimum and average salaries rate in the country is roughly in the same range as in developed countries. In all countries that we have analyzed, ministers and their deputies earn more than Ukrainian officials. The largest salaries of ministers are in the UK, the smallest - in Montenegro.

United Kingdom

Prime Minister of the UK earns £ 143.462 per year (11.955 pounds per month, or 15 688 dollars). Half of this amount - this is the so-called parliamentary salary for legislative work. The members of the British Cabinet get somewhat less - 11.293 pounds per month ($ 14.819), 45% of this amount is parliamentary salary.

Poland

Polish ministerial salary in 2015: Prime Minister receives 15 thousand zlotys ($ 3.775), a total with supplements - 16.7 000 Zlotys ($ 4.203). Vice Prime minister earns 12,800 zlotys ($ 3.221) ministers - 8,500 zlotys, and with additional payments - 12,500 zlotys ($ 3.146). Deputy Ministers get somewhat less - 10.775 zlotys ($ 2.711), second deputy - 9,892 zlotys ($ 2.489).

Ukrainian salary decreased to the level of poor African countries

Netherlands

The head of the Dutch government for his work annually receives 157,287 euros ($ 173.000). Accordingly monthly current Prime Minister Mark Rutte receives 13.107 euros ($ 14.423). The ministers of Rutte government earn 146,824 euros ($ 161.000) a year, and per month - 12.235 euros ($ 13.400).

Montenegro

Somewhat lower fees get representatives of the Government of Montenegro. Salary of the Prime Minister here is 2,700 euros ($ 2.971) of Ministers - 2,340 euros ($ 2.575).

Canada

Site of the Parliament of Canada publishes annual data on the salaries of senior government officials. Thus, according to these data, in 2016 the chairman of the Government of Canada will receive $ 170.400 dollars ($ 14.200 monthly), government ministers will receive $ 81.500 ($ 6.791 monthly). In addition, the Prime Minister and ministers receive assistance in the amount of $ 2,000 for use of the vehicle.

United States

The most paid government post in the United States is the president. Thus, in 2015, Barack Obama has received money in the amount of $ 395.000 ($ 32.916 monthly). Ministers earn US $ 16.641 monthly before taxes. That is, in each year the ministers in the amount earn $ 200,000, without taxes and other payments - $ 121,000.

Salaries deshadowing process started, - Yatsenyuk

Considerations for Ukraine

Expected conclusion - the ministers abroad earn more, much more. For comparison, Prime Minister Groysman must work 15 months to make the same amount received by his colleague from Ireland. But if we compare the incomes of civil servants adjusted for the poverty of the country and compare salaries of ministers to the average or minimal salary in the country, the difference almost disappears.

In particular, wage of Ukrainian prime minister - is 19 times more than minimum wage or 6 average wages. Minister of Culture earned 19.796 UAH ($ 795), it is 13.6 times more than the minimum wage and 3.7 times more than the average. The least paid in June 2016 Minister of agrarian and industrial complex earned only 7.245 UAH ($ 292), it is 5 times more than the minimum wage and 1.3 times more than the average.

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