IMF asks to freeze minimum wages that will lead to Pension Fund deficit

Source : 112 Ukraine

The government can raise pensions, but cannot raise salaries
13:15, 17 February 2017


Memorandum of the International Monetary Fund provides freezing of the minimal wages for three years, but it can cause a deficit of the Pension Fund. This was reported by the Minister of Social Policy Andriy Reva in an interview for Realist agency.

"If we raise the minimum pension by 10% this year we have to increase the minimum wage for at least 15%. What do we read in the draft of the Memorandum? Freeze wages for three years. What does this mean? That the minimum pension will increase, and the contribution to the Pension Fund will decrease. We again will increase the deficit of the Pension Fund, for what we get scolded by the IMF.  Someone explain this phenomenon to me so that I can understand. But there is no answer, "Reva said.

Related: Ukraine to submit bill on land reform to IMF until May

Earlier it was reported that IMF expressed satisfaction with negotiations on another tranche for Ukraine. At the same time, Lagarde avoided estimating their duration.

Related: Memorandum of Cooperation with IMF does not include increase in retirement age, - Danylyuk

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