In Ukraine, one of the important macroeconomic indicators is the cost of living. The size of many payments, including social ones, depends on its value.
What is the cost of living
According to Ukrainian legislation, the subsistence minimum is the monthly cost of the minimum set of food products, non-food products, and services necessary to meet basic human needs. We can say that the subsistence minimum is the average cost of the consumer basket, set by the state, per month.
For how many categories of citizens is a living wage set
In Ukraine, the subsistence minimum is set separately for: children under 6 years old, children from 6 to 18 years old, able-bodied persons, as well as for the disabled population. The latter include retirees and disabled people who are not working. In addition, there is a general cost of living.
In Ukraine, the size of the subsistence minimum is determined annually by the law on the state budget. Depending on the economic situation in the country, the subsistence minimum may increase or remain unchanged during the year.
What is the cost of living in 2014
In Ukraine this year the following values of the subsistence minimum are in force:
Total size - 1176 hryvnia;
Children under 6 years old - 1032 hryvnia;
Children from 6 to 18 years old - 1286 hryvnia;
Able-bodied population - 1218 hryvnia;
Disabled population - 949 hryvnia.
It should be noted that while the legislation this year does not provide for an increase in the living wage. Therefore, any changes in its value can be expected from January 1, 2015.
What does the cost of living affect
The amount of very many payments depends on the established value of the subsistence minimum. These include pensions, minimum wages, various types of state social assistance to low-income groups of the population. Also, a tax social benefit is tied to the subsistence level, i.e. that amount of salary, which is not levied on personal income tax. The minimum amount of alimony awarded also depends on the subsistence level established for children of the corresponding age.
Oddly enough, the size of the living wage is also associated with responsibility for crimes and administrative offenses. So, in a number of cases, the punishment for them depends on the amount of harm caused, measured in non-taxable minimum incomes of citizens (abbreviated as NMDG). For such situations in 2014, 1 NMDH is 50% of the subsistence minimum established for able-bodied persons, i.e. 609 hryvnia. Starting from 2015, 1 NMDH and the subsistence minimum for able-bodied citizens will coincide.
