05 April 2011

Guaranteed Wages in Ukraine?

Ukrainian Vice Prime Minister and Social Security Minister - Sergiy Tigipko, has proposed to introduce what he calls 'guaranteed wages' in Ukraine.

Not sure what he means by this yet. More information is needed. But the idea of guaranteed wages in not new. Most people are aware of 'minimum wage', where a company knows it must pay a minimum per hour rate to employees.

In the UK, the only 'guaranteed wages' you will find are for those who are unemployed or long term ill or those unable to work for a number of reasons. Better known as 'State Support' or 'Social Security'. For those in employment receiving a guaranteed wage is confusing.
But then again in the UK, employers usually pay employees every week/month as per any agreement. They do not just pay 'when they have money', as is the practice in Ukraine.

The other way of looking at it is again a system used in the UK, where people are required to see a 'living wage', where for example a person has a low paid job and the wage is not enough to support his or her family and meet usual costs like rent/mortgage etc. The state will provide support through tax credits or other means to ensure that a person/family has enough money to live. Perhaps, and I hope this is what Tigipko has in mind?

For business people it's only a dream to think about having a 'Guaranteed Income Stream'.

See: http://www.kyivpost.com/news/nation/detail/101554/

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