Why Ukrainian officials get astronomical salaries?

Author : Natalia Lebed

Source : 112 Ukraine

A new scandal has erupted in Ukraine – not it is about high salaries of the officials and the ministers, who get some 10,000-20,000 USD monthly
09:20, 16 January 2020

Open source

A new scandal has erupted in Ukraine – not it is about high salaries of the officials and the ministers, who get some 10,000-20,000 USD monthly... “I draw attention to the increase in salaries of ministers and their MPs in all the ministries! The average salary of the top officials has increased by 3.5-5 times! former Deputy Prime Minister Pavlo Rozenko wrote on Facebook. He adds that, according to his information, from January 1, 2020, the salary of MPs has increased to 100,000 UAH (4,100 USD) per month.

Parliamentary speaker Dmytro Razumkov has already denied this information. That is, today this news is fake but we cannot predict what would be tomorrow. We should recall here that even when Rosenko was in office, the official rates of members of the government and ordinary teachers were significantly different.

Related: Why creeping wages increase does not reduce large-scale labor migration in Ukraine

So, in particular, he indicated 30,000 USD of income in his 2018 declaration. Plus a gift from his mother for 400,000 USD (16,600 USD) and some other little things... But Rozenko is not the key object of our discussion here. Neither are government officials, who receive all the same sky-high salaries. Moreover, MPs are far from being the richest here.

The stakes were primarily raised by prosecutors. And this is already official since a corresponding government decree was issued. The government increased the prosecutor’s salary by more than 2.5 times. Ruslan Ryaboshapka will now sign on the payroll opposite the amount of 3,900 USD per month.

The salary of the first deputy prosecutor general would amount to 3,700 USD; deputy – 3,500 USD; the head of the department – 1,660 USD; heads of regional prosecutor's offices – 1,580 USD; district prosecutor's offices – 1,330 USD.

Related: Ukrainian court allows defining salary in foreign currency

Of course, premiums and bonuses, a Soviet-related tradition, are added to all the voiced figures. A bonus for labor intensity and for performing especially important work (up to 100% of the official salary), a bonus for the length of service and for work instead of a temporarily absent comrade, as well as a bonus for access to a state secret.

Someone calculated that Minister of Culture Volodymyr Borodyansky and his deputies declared the total amount of their December salary in the amount of over 2 million hryvnias (80,000 USD). Borodyansky himself received in December 3,800 USD ("without taxes," the minister specified). But for some reason, his deputies receive higher salaries. First deputy minister Anatoliy Maksymchuk received 8,310 USD in December, deputy Iryna Podolyak earned 8,060 USD, and her colleagues Volodymyr Shumilin and Oleksiy Sivirin – 6,850 USD and 7,200 USD respectively.

For comparison, as for December 2019, the average salary in Ukraine is 444 USD (according to the State Statistics Service). Which means that the level of financial support for cultural workers is about 20 times better than that of the direct consumer of this culture.

Related: Donetsk and Kyiv regions residents have highest average salaries in Ukraine

It is expected that this year Head of Ukrposhta Ihor Smelyansky would receive 1 million 866 thousand 808 UAH per month (nearly 75,000 USD). His monthly salary increased from 23,000 USD in 2018 to almost 75,000 USD as of today. Ordinary employees of this state enterprise are also “not forgotten.” This year, they will get an extra 33 USD to the existing 250 USD.

By the way, 250 USD is the average salary of Ukrainian postman.

And Naftogaz, meanwhile, strictly follows its traditions. In 2018, the company was already at the epicenter of scandal when the then head of the board, Andriy Kobolev, received a bonus of... 7.9 million USD (261 million UAH) because the company's lawyers won over Russian Gazprom in the Stockholm arbitration. This year, the winners of the Russians again rushed through the thorns to the stars. According to executive director of Naftogaz Yuriy Vitrenko, new bonuses will be paid to a group of leaders of the state-owned company.

Since the latter is involved in a Stockholm decision positive for Ukrainians (according to which the Russian Federation is obliged to pay 2.9 billion USD to Ukraine), they will be financially rewarded. Top managers of Naftogaz will receive 1% of the funds paid by Gazprom. That is 29 million USD.

Related: Taxes for Ukrainians with small salaries to be reduced

The record of Naftogaz remains unbroken so far. But salaries in Ukraine are growing steadily. True, not for all the citizens. Former MPs and former anti-corruption fighters, who have joined the ruling political force, receive high salaries.

For example, in November 2019, Mustafa Nayem, MP of the previous convocation from the Poroshenko Bloc, received 310 521 UAH (13,000 USD). Recall, he is currently working as deputy general director of Ukroboronprom state defense concern. By the way, this concern is headed by Aivaras Abromavičius. According to information from MP from the Servant of the People faction, Oleksandr Dubinsky, the supervisory board of Ukroboronprom wants to increase the salary of the general director of the concern by 18 times - up to 18.6 million UAH (775,000 USD) per year.

Related: $18 mln salary arrears at 15 enterprises of Ukraine's state defense comple to be redeemed by the end of the year, - Abramavicius

By the way, when US President Donald Trump decided to transfer the entire annual (for 2019) salary to charity, it became known that we are talking about 400,000 USD. In other words, Washington's "pauper" earns some 34,000 USD a month. And this is less than some Ukrainian officials earn.

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