№ 4/2016

Fìnansi Ukr. 2016 (4): 100–

FINANCIAL AND ECONOMIC REGULATION

YUSHKO Serhii ¹

¹Simon Kuznets Kharkiv National University of Economics
OrcID ID : https://orcid.org/0000-0001-6323-7687

INDEXATION OF PERSONAL INCOME: ANALYSIS OF CURRENT UKRAINIAN PRACTICES

The significant devaluation of the national currency and noticeable acceleration of inflation in Ukraine require adequate protection of personal income. The author analyzes the current income indexation procedure and amendments to it that have been made since December 2015. The key idea is that this procedure remains imperfect and leads to a number of negative consequences: it upsets the initially formed structure of salaries and wages for different professions, based on classes in the Comprehensive Rate Schedule, it makes it impossible for workers to exercise their right to a full payment for the results of their professional growth; it causes significant differences in salaries of workers hired to fill the same positions but at different times, etc. The specific calculations are made based on the example of income of faculty members of educational institutions of III-IV accreditation levels. This allows us to see and evaluate the identified disadvantages. The author draws attention to the vulnerability of incomes of company employees: the skillful manipulation of imperfect legal provisions allows the employer to avoid fines for a failure to do the indexation. Based on findings, the author concludes that the most effective way of protecting income of employees from inflation is to review it in a timely and adequate manner and offers his own version of improving the wage-earner income indexation procedure.

Keywords:social protection, social government benefits, indexation of income, inflation, Comprehensive Rate Schedule.

JEL: H30, H53, I38.

YUSHKO S. . INDEXATION OF PERSONAL INCOME: ANALYSIS OF CURRENT UKRAINIAN PRACTICES / S. YUSHKO // Фінанси України. - 2016. - № 4. - C. 100-.

Article original in Ukrainian (pp. 100 - 113)

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