Page 31 - UKRRptFeb19

4.4.2 Nominal wages dynamics
The average salary will rise to UAH10,500 ($377) in 2018 , Ukrainian Prime Minister Volodymyr Groysman said on January 25. The International Monetary Fund (IMF) named Ukraine the “ poorest country in Europe” in a report last year as the economic of the last few years has seen incomes and the standard of living tank. For 11 months of 2018, the average salary in Ukraine exceeded UAH9,000, having grown by more than 12% y/y. However, wage growth slowed in the last months o "The average salary is expected to be about UAH10,500, but I am convinced that this figure will be higher," Groysman said, according to the Government portal reports. The prime minister also called on Ukrainians working abroad to return home. "I wish Ukrainians could work in Ukraine and receive a decent salary. We will reach the goal of high salary for Ukrainians," Groysman said. Currently Ukrstate estimates there are 4.6mn Ukrainians working abroad, or 21% of the active workforce. Real disposable income of Ukraine's citizens has been faring better and rose 10.0% y/y in the third quarter of 2018, slightly accelerating from 9.7% y/y growth in the second quarter of 2018, the State Statistics Service reported on December 28.
Ukraine real wage growth slows to 11% y/y in November . Real wages in Ukraine grew 11.4% y/y in November, slowing from a 14.2% y/y surge in October, the State Statistics Service reported on December 28.
The average monthly nominal wage amounted to UAH9,161 a month ($328) in December , dropping from UAH9,218 in October, or 2% m/m in real terms.
The leading regions for average monthly wages remained the city of Kyiv (UAH13,897), the Ukrainian-controlled Donetsk region (UAH9,977) and the Kyiv region (UAH9,447).
The largest nominal average wage growth was in administration services (31% y/y), construction (28% y/y), and financial and insurance services (25% y/y). Within the industrial sector, the highest nominal wages were in pharmaceuticals (UAH17,869), mining (UAH13,074), and in coke and oil production (UAH12,081).
“It seems real wage growth is starting to cool somewhat after having recovered from the economic collapse of 2014-2015. Real wages grew 12-13% y/y in 2018, according to our estimate. We expect real wages to climb 10-11% y/y in 2019,” Evgeniya Akhtyrko of Concorde Capital said in a note.
The minimum wage in Ukraine in 2019 is UAH 4,173. This amount is stipulated in law No. 2629-VIII on the national budget of Ukraine for the current year, which entered into force on January 1.
Real disposable income of Ukraine's citizens rose 10.0% y/y in the third quarter of 2018 , slightly accelerating from 9.7% y/y growth in the second quarter of 2018, the State Statistics Service reported on Dec. 28. Average disposable monthly income per individual amounted to UAH5,066 ($185). Nominal gross income of individuals rose 18% y/y, driven mostly by accelerating wage (22.9% y/y) and social income (14.0% y/y).
The nominal income of private entrepreneurs and self-employed individuals
31 UKRAINE Country Report February 2019 www.intellinews.com