Real wages increased by 11.9%.
Ukrainian earnings continue to grow at a record pace, overtaking price growth — the State Statistics Service of Ukraine is sure of this, having published fresh calculations of average salaries in the country. But economists have a different opinion, according Chronicle.info with reference to Today.
How wages have changed
As can be seen from the data of the State Statistics Service, the average nominal, that is, excluding inflation, salary in Ukraine in December 2021 amounted to UAH 17,453. This is more in comparison with the November salary by UAH 3,171, or 22%, and more than in December 2020, by UAH 3,274, or 23%. Obviously, such a large average increase in earnings per month can be explained by the payment of bonuses and bonuses to employees at the end of the year. In January 2022, salaries will be at the level of November 2021, or even lower.
The average salary for the year, that is, for January-December 2021, which is equal to UAH 14,017, is more indicative. By January-December 2020, the increase was 20.9% or UAH 2426.
Real, adjusted for inflation, wages increased by 11.9%, according to the State Statistics Service. That is, the average Ukrainian is now considered richer than he was a year ago, by almost 12% or 2,900 hryvnias.
What by regions
By regions, salaries have grown everywhere — from Kiev, where they are traditionally the highest — UAH 26,759 (+22.7% or UAH 4947 compared to December 2020), to the Kirovohrad region, where they are the lowest — UAH 13,331 (+17% or UAH 1939). That is, in the capital, workers are paid twice as much as in the lowest paid region.
Let's clarify: we are talking about earnings without deducting taxes. An employee receives 19.5% less on hand. In Kyiv, the net average salary at the end of December 2021 was UAH 21,541, in the Kirovohrad region — UAH 10,731.
The largest annual percentage increase in wages was in Vinnytsia region — by 26.3%, the least increase earnings in the Kiev region — by 15.7%. In other regions, salaries increased from 16.8% in the Donetsk region to 26.1% in the Mykolaiv region.
What by industry
Compared to December 2020, earnings have increased over the year in all industries. This is noteworthy, since in 2020 in one of the industries — catering and the hotel business — salaries for the year decreased due to quarantine restrictions. Here, official salaries are the lowest — UAH 9,710, but as a percentage they increased immediately by 42%.
Small official salaries, in addition to the hotel business and catering, in construction — UAH 12,957 (+12%) and in the field of administrative and support services (outsourcing in the field of logistics, accounting, supply, etc.) — UAH 13,406 (+14 ,eight%). Eternal outsiders — education and healthcare — turned out to be in a slightly better position at the end of the year: an average teacher is paid UAH 14,931 (+28.4%), an average physician — UAH 14,833 (+15.6%).
The largest annual increase in wages in the agricultural sector — by 48% or almost 1.5 times, up to UAH 16,042.
The highest earnings for the year in the banking sector — 31,271 (+36.9%) , in the IT sector — UAH 29,963 (+32.5%) and for civil service and defense workers — UAH 26,924 (+18.9%).
Why employees began to pay more
Experts named two main reasons for the increase in wages.
The first reason is the growing labor migration.
«More and more Ukrainians leave to work, people without qualifications earn in Poland 600 euros per month, and specialists: machine operators, drivers — 1000-1200 euros. Therefore, Ukrainian business is forced to point-to-point raise the wages of qualified specialists, without which production will simply stop working»
, says Oleksandr Okhrimenko, President of the Ukranalittsentr.
The second reason is a 20% increase in the minimum wage from January 1, 2021 (up to UAH 6,000) and another 8% (up to UAH 6,500) from December 1 of the same year.
«This proportionally increased salaries in the tariff scale throughout the public sector. Increased and allowances — for seniority, professionalism, etc.»
, — explained a member of the Economic Debating Club Oleg Pendzin. What earnings do statistics count
Experts reminded: the data of the State Statistics Service on wages do not take into account more than half of the workers in Ukraine. According to official figures, there are 7.02 million full-time employees out of 16 million employed. Another 2 million are private entrepreneurs, whom the statistics do not take into account, since they do not have a salary, but an income. Also not taken into account due to technical complexity, earnings in structures where less than 10 employees are employed. Finally, more than 3 million are labor migrants, and 3 million people, according to the State Statistics, work in Ukraine, but unofficially.
As Viktor Skarshevsky, Vice President for Economic Policy at the Ukrainian Union of Industrialists and Entrepreneurs, explained, in addition to the incompleteness of statistical coverage, the State Statistics methodology does not take into account the self-employed, whose earnings can be significantly lower, especially in rural areas, than those of employees.
«The gross salary is also published, and if you subtract taxes (personal income tax and military tax), then the actual average annual salary will be not UAH 14 thousand, but UAH 11.3 thousand (minus 19.5%) ,
— But the main problem is that the statistics indicate the average salary, not the median, which, as the practice of other countries shows, is 10-15% lower than the average. Thus, without taxes and with the right methodology, the average salary is 30% less than published».
— says Viktor Skarshevsky.
Recall: with a median salary, half of the workers receive more than the median salary, half — less.
Is it true that in Kiev they earn an average of $ 1,000
Experts call this figure close to reality.
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Oleg Pendzin explains that in Kiev the situation with wages differs markedly from the national average. The central authorities, the main offices of large national and international companies, banks, and many IT specialists are concentrated here.
« and officials are noticeably more than 26 thousand UAH,
— Approximately this is how much the chief specialist of the central executive authority receives, and top managers have it many times higher.
– analyzes Oleg Pendzin.
The same high earnings in the central offices of state monopolies — «Ukrzaliznytsia», «Ukrposhta» etc. All of them are located in Kiev. The main offices of the largest commercial enterprises are also located there.
But not only officials make good money: in successfully operating structures for sales, supply of goods, logistics, and so on, official earnings of $ 1,000 a month in Kiev are not uncommon.
Alexander Okhrimenko agrees with him.
«The number of highly paid people in the capital is several hundred thousand, with a total number of officially employed, estimated to be up to 700 thousand people,  ;
— Therefore, the data of the State Statistics Service, I emphasize: according to officially working ones, they are highly likely to be reliable, there are a lot of people with large salaries in Kiev.
— Alexander Okhrimenko analyzes.
But about the same number of residents of the capital receive 1.5-2 times less than 26 thousand UAH. First of all, these are state employees — doctors, teachers, cultural workers».