The government of Ukraine intends to increase the sustenance level in the country. Currently it’s 2,027 hryvnia (USD 75) per month; from 1 July 2020 there is an increase to 2,118 hryvnia (USD 79). The proposal is to keep it in line with the average wage in Ukraine.

How the increase in sustenance level in Ukraine should work?

It’s hardly possible to survive on $75 per month, even in Ukraine, but that’s the current official sustenance level in the country.

The draft law N3515 proposes to change the way how the official sustenance level is set, with the view to increase it and link to the actual ability of a person to live on that amount for a month. The amount should be in line with the costs to lead a regular lifestyle in the society.

Instead of setting the sustenance level arbitrary, the draft law proposes to link it to the actual average wages in the country. Wages in Ukraine are traditionally calculated monthly, not weekly.

The sustenance level should be set on the basis of the average wages for the last year and include a provision for the projected inflation.

The percentage of the amount should be calculated in the following way:

• 2021: 40%
• 2022: 41%
• 2023: 42%
• 2024: 43%
• 2025: 44%
• 2026: 45%
• 2027: 46%
• 2028: 47%
• 2029: 48%
• 2030: 49%
• 2031: 50%

In other words, every year the amount should increase by 1%, from 40% in 2021 to 50% in 2031.

If the actual amount needed to survive exceeds the planned figure by more than 10%, for any reason such as economic crisis etc., the government should then reconsider and increase the official sustenance level.

The draft law includes a mechanism of monitoring the actual expenses of households to determine the cost of the consumer basket. The consumer basket includes expenditure for groceries, other essential goods and services, childcare, transportation, etc.

The current sustenance level of 2,027 hryvnia (US $75) is set to increase twice this year:

• • From 1 July 2020 it becomes 2,118 UAH (US $79).
  • From 1 December 2020 it changes to 2,189 UAH (US $81).

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