Klymenko explained, why can raising minimum wage lead to negative consequences
Oleksandr Klymenko, former Minister of revenue and duties and the leader of the «Uspishna Kraina» party, stated that rise of minimal wage – it is nothing more than a PR action of current power. He told about it on the air of Radio Vesty during the “Big interview”.
“Raising the minimum wage, which was carried out by Groysman – is a shell game again. This growth of minimum wage gives nothing more than pressure on business. Let’s see, the average salary in Ternopil region is amounted to UAH 3760. Nowadays, minimum wage is UAH 3200. Is there any industrial growth? Have we ramped up our potential? Or is the minimum wage [its raise] required for fixing the line, which will be additionally taxed? We understand that business does not talk about development, but survival today. Business will go into the shadows”, – Klymenko stated.
Read full text of the interview of Oleksandr Klymenko: «We should not stand with our hands stretched out due to loans and lose our national interests»
The leader of the «Uspishna Kraina» also noted that raising the minimum wage will aggravate the problem of “salaries in envelopes”. According to him, “business will be shortened (in terms of payment of official salaries – ed.). It will leave 0.25, instead of half rate for the employee. There is no economic possibility to pay such minimum wage…”
“There will be inflation, another phase of weakening of national currency. No more no less. Thus, these measures – are declarative. This is a PR action. It has nothing in common with needs of the economy”, – Klymenko concluded.
Link to source: Vesty