ANALYTICAL REVIEW AND THE WAYS FOR IMPROVEMENT THE STATE REGULATION OF THE MINIMUM WAGE PAYMENT AND SUBSISTENCE LEVEL IN UKRAINE

Abstract

Remuneration is one of the most important and difficult areas of an accountant's job. It is the main source of income which characterizes the living standard of each employee. Effective organization of wages, compliance with the fair proportions, ratios, sizes wages with working conditions and results are a decisive factor of stimulating labor productivity, employees' interest in the increased efficiency and quality of their work. The basis of state regulation of the economy of Ukraine, as a social country of the world, are the social standards, which development and abidance allows to stimulate the economic growth, control the redistribution of incomes in the economy, ensure an adequate reproduction of labor and the quality of people’s life. The authors of the article have investigated the concept essence of the word «wages», and its functions. There were established the problems in the field of remuneration and the formed functions of wages in modern conditions, considering the growth of inflation, unemployment and the coercion granting of unpaid leave. One of the key levers of social- economic policy of the state is to establish a minimum level of salaries in the legislative order. The article systematizes the key factors on the basis of which it is possible to determined the size of the minimum wage: the subsistence level, the growth rate of the consumer prices index, average wages. Much attention is paid to the impact of the minimum wage on the formation of other indicators. The article shows the dynamics of the minimum wages in Ukraine for 2012 – 2022. For comparison, the authors have investigated the size of minimum wages of 2020-2021 in some developed countries. The dynamics of index changes of inflation and real wages in Ukraine for 2011 - 2021 years are given. It is established that in the developed countries of the world the size of the minimum wage is close to the subsistence level, while Ukraine is characterized by the significant gap between these two indicators. In Ukraine, the subsistence level is one of the key instruments of social spending planning tools. The size of the subsistence level for able-bodied people has been studied, as it affects at taxation of employee benefits and the amount of social tax benefits from personal income tax. The existence of two types of subsistence level: legislative and actual is the key problem for Ukraine. Legislative level is based on the capabilities of the budget, and the actual - on the needs of the people, so the state can’t use the subsistence level to help the poor people and balance the budget. It is also established that the significant gap between the minimum wages and the subsistence level, leads to inequality in cash security as for working people as for other categories of the population, their living lowering standards and deepening economic crisis in the country. In order to improve salaries functions, the directions of the state policy improvement concerning establishment the level of minimum wages and subsistence level are offered.