People’s Deputy, the Party of Regions parliamentary faction member Vasiliy Khara during today's briefing in Verkhovna Rada explained in detail to those present the essence of the draft on living wage, which was proposed by the Party of Regions faction:

“The draft prepared by the MPs from the Party of Regions concerning the living wage is especially important. I will start that there is a law on living wage which defines a necessary list of products, commodities and services, the so-called consumer basket. It is needed to provide every person with the necessary set of products, commodities and services. The law envisages revising this list of products, commodities and services towards an increase once in five years. And until 2005, while the status quo of the living wage was not changed through the Cabinet of Ministers’ proposal, the following procedure existed: to date of the beginning of work over the state budget, the value of this basket was counted up by prices existent on the calculation day, and, accordingly, an average index of the living wage for particular category of people was estimated, say, for a new-born under 3 years, under-aged children, workers, unemployed, etc.

In this perspective, the living wage as a social category was used to form the minimum wage for this reason. And all wages within the scale of charges depended on the minimum wage rate. For the time being the minimum pension, scholarship and all social payments are formed thereon.

By today in 2008 we have had four indices of the living wage and we are deeply convinced that their level is considerably lower than the due level to date. For example, now the living wage accounts for UAH 607, and from December 1 it will be only UAH 626. Hence, according to our experts’ estimations it should already equal nearly one thousand. It means that today workers receive lesser wage, pensioners – pension, students – scholarship and get tinier social benefits. If our draft is approved in the second reading, then the Cabinet of Ministers will have to calculate by today's prices the value of this consumer basket and reach the objective living wage which will be over UAH 800, which is actually by UAH 230 higher than the present living wage. Thereof the minimum wage will be at the level of minimum living wage, the scale of charges, the pension, scholarships and all social payments will climb up”.

The Party of Regions Press Service