In the Ternopil region five real facts about minimum wage and unemployment

in Recent times, the media actively replicated the thesis of the alleged negative consequences of raising the minimum wage and the revision of the rules of payment of the single social contribution. A build up of negativity around the closure of small businesses. Like entrepreneurs EN masse into the shadows due to the strengthening of fiscal pressure that in the near future will cause a reduction in revenues to the Pension Fund and rising unemployment. State employees are threatened with cuts due to the fact that in the budget, they say, pledged money to Finance the higher wages. To heighten the hysteria and joined the national Bank, which last August inflation report also predicts rising unemployment due to the mass closure Popov. In this situation, the government considers it necessary to note the following. First, the statement about the strengthening of fiscal pressure, including small businesses, is outright manipulation Because the government had not raised taxes, and introduced a logical rule, a single social contribution should be paid regardless of profit. Contributions to the Pension Fund are eligible for retirement. Secondly, the state, conversely, gradually reduces the burden on business and provides a new fiscal opportunities for its development To encourage businesses to pay "white" salaries, the state significantly lowered the Ust rate from 42% to 21%. New amendments to the Tax code, which came into force this year, in particular, provide for a five-year tax holidays for newly created enterprises are exempt from tax on profit, small businesses that meet certain criteria, introducing accelerated depreciation of equipment that gives businesses an additional resource investment in the amount of 700 million UAH. Thirdly, the government categorically against support of the business by reducing the rights and freedoms of the working population Raising the minimum wage is the restoration of social justice. Those who are screaming most of all unfeasible for business and at the same time positioning themselves as defenders of ordinary people, why do not give voice to these statistics: within three years, inflation has doubled, and the minimum wage is only 30%. Last year almost 40% of the working population received a salary of less than RS 3200. That the government's strategy is quite balanced and economically feasible, evidenced by the statistics. 1. In January 2017 the number of unemployed decreased by 16% or by 80 thousand people This means that the growth of the unemployment, especially through raising the minimum wage, does not say. Even more - on the contrary, there is growing demand for staff. In particular, on February 1 of this year the number of appeals by employers to the State employment service in search of personnel increased by 51% (47 thousand). According to information from other sources in addition to official reporting, the number of vacancies is 20.8 thousand 2. The average wage for the existing vacancies – 3900 UAH Only 34% of the jobs employers offer wages to the level of the new "minimal salary" and the rest are willing to pay more. This means that the government's decision on double increase of minimum wage fully meets today's economic realities. In particular, because the economy is finally showing the results of last year growth after a 10% drop in 2015 3. In January of this year, from the payment of ERUs received 11.1 billion UAH. 700 million UAH. more than in January last year Targets Jan, 2017 upon receipt of ERU exceeded by 1.8 billion UAH. or 19.7%. Revenues to the consolidated budget from the tax on income of natural persons compared with January last year increased by 38.6%. This means that the real business in the majority is not hiding in the shadows, and ready to work by the rules that are set by the government. Those who avoid payment of obligatory payments and violating labour laws should be held accountable. Background: In January of this year to Gastrula and its territorial departments received 685 complaints of citizens alleging non-observance of requirements about payment of minimum wage, 604 of them – from the government contact centre 4. In 2017 the costs of the state budget on payment of workers of budgetary sphere in comparison with the previous year increased by 40 billion UAH. That is about the possible reduction or transfer of state employees part-time. The state in its entirety has a resource to ensure payment of the updated public sector wages. 1 million public sector employees received an increase in wages from 400 to 2 thousand UAH. On all wages in hospitals and schools given the increase in minimum wage paid. Delays in payments were related to purely technical problems – due to the late adoption of the budget subvention to local budgets for payment of salaries were listed in the volumes of January last year. Now the extra funds have already been transferred to local budgets. 5. For the period 01.12.2016 - 01.02.2017 ceased operations 299,7 thousand PHOTONS, of which 98% in the last years have not carried out economic activity On the mass reduction of a small business is not the issue. The number of PHOTONS that ceased operations over the past three months, is only of 7.56% was registered as of January 1 of this year. The number of PHOTONS at the end of January 2017, even with the private entrepreneurs, more than in 2015 on 160 thousand Since the vast majority of closed FOT does not have any operations, these men are clearly not fall in the unemployment statistics because they have another permanent place of employment or other income sources. Peak closure has already passed – it occurred in the period of several days before new year and after. Since 5 of January check-in/closure entered in the standard mode. In January 2017 registered 27.8 thousand new individuals – entrepreneurs. In 2015 sales volume of small enterprises of production was less than 7%. If to take into account the elimination of it is "sleeping" PAYROLL, they close the more in no way affect the forward-looking indicators of economic growth. This was reported in the Ternopil regional state administration.

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Source: http://uzinform.com.ua/

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