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Average Ukrainian salary grows, but income of citizens decreases

Author : News Agency 112.ua

If we compare the average salary in Ukraine with other countries, we will see that our country is significantly behind even its closest neighbors
23:00, 3 June 2019

Open source

The average Ukrainian monthly salary in dollar equivalent in March 2019 almost reached the level of March 2013 - $ 385 and $ 394, respectively.

But to measure the standard of living, the average salary in our country is not a very objective indicator.

First, such wages level, calculated by the State Statistics Committee does not cover all workers - only 7.6 million Ukrainian citizens out of 16.3 million are employed, that is, less than half.

Secondly, the State Statistics Committee considers the average wage as arithmetic average, and not median, as in other countries, which leads to an overestimation of the average wage in Ukraine.

Thirdly, the increase in nominal wages takes place not due to the creation of new jobs, investments and increased productivity, but due to labor shortages due to mass labor migration.

Related: One third of Ukraine's workers survive on salary lower than minimum subsistence level


Fourth, wages make less than half - 45% of the income structure. The second half is social payments - 37-40% and the income of the self-employed.

If you look at real disposable income, the incomes of Ukrainian citizens (adjusted for inflation) compared with 2013 did not increase, but decreased - by 12.4%. Given that real wages, compared with 2013, increased by 6.3%.

Fifth, in the cost structure of Ukrainian citizens, the cost of housing and communal services has sharply increased - from 9% in 2013 to 18% in 2018. So even the same income as in 2013 does not provide the same standard of living.

If we compare the average salary in Ukraine with other countries, we will see that Ukraine is significantly behind even its closest neighbors: the average salary in Ukraine is 1.4 times less than in Belarus, 1.6 times less than in Russia, 1.8 times - than in Poland and Slovakia, 3.3 times - than in the Czech Republic.

Related: Ukraine's Naftogaz CEO promises to spend his salary on charity

Related: State Emergency Service of Ukraine personnel’s salary planned to be increased, - Avakov

 

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