Ukraine: Major developments, new initiatives in the social sphere
Major developments, new initiatives in social sphere of Ukraine (2019 – I quarter 2020)
Olena Tarasiuk, Ministry of Social Policy of Ukraine
The main focus in the field of social development in 2019 focused on the following tasks:
- creating a supportive environment for persons with disabilities;
- social support for families in difficult circumstances and other categories of population;
- creation of conditions for providing a decent old age for the elderly, development of the pension insurance system;
- ensuring the protection of children’s rights.
There is a stable tendency to increase state social standards and cash incomes of citizens.
The Subsistence Minimum increased by 9.4 % in 2019, which is planned to further increase by 8 % during 2020. Meanwhile the increase of the average annual inflation rate was 4.1 % (December, 2019 to December, 2018). During January – March 2020 it was 100,7 %. In line with the increase in the Subsistence Minimum, the size of the basic state social guarantees determined on its basis was increased.
The Minimum Wage increased by 12.1 %. Since January 2020, the minimum wage is 4,723 UAH, which is 13.2 % higher than the value of 2019.
The average monthly salary in 2019 compared to 2018 increased by 16 % and amounted to UAH 12,264, which is by 2.9 higher than the Minimum Wage (4,173 UAH). The average monthly salary in March 2019 was 11,446 and it is by 11.8 % higher compared to the relevant month in preceding year, while real wages increased by 9.3%.
The average pension as of 01.01.2020 amounted to 3,083 UAH and it was by 16.5 % higher than the same day of 2019. As of 01.04.2020 it amounted to 3,170 UAH which is by 9.3 % exceeds the its size compared to 01.04.2019.
Nominal income of population in 2019 increased by 13.9 % compared to 2018. Available income, which can be used by the population for purchasing goods and services, increased by 14.9%, while the real available, determined on the basis of price factor, increased by 6.5%. Nominal income per capita amounted to 67,528 UAH in 2019 and it was higher by 15.5 % than in 2018.
Increasing income levels of all segments of the population contributed to the poverty reduction. The poverty rate in absolute criterion (incomes below the actual Subsistence Minimum) fell by 5 percentage points over the 9 months of 2019, up to 24.3% from 29.3% in the previous year.