The current minimum monthly wage in Ukraine is UAH 744. However, since this January according to Law No. 1646-VI “On Setting the Subsistence Level and Minimum Wage”, the minimum wage was supposed to be UAH 869 and starting from April 2010 – UAH 884. The situation with minimum pensions is similar (UAH 695 and UAH 706 in January and April) and the subsistence level (UAH 701 and UAH 839).

Officials in the government assure the national budget of 2010 will take into account all the social needs of the population. In addition, bonuses that were not paid for several months will be evenly distributed by the end of this year will also be paid. “We will find UAH 24-28 bn to raising social standards. Of course, we cannot guarantee the raises envisaged, but there will be not cuts in salaries and pensions. We will pay them on time,” said Tihipko during a recent TV appearance.

Betliy says the most the government will agree to is raising minimum wages and pensions according to the inflation rate on a quarterly basis. “Though these raises are negligible, it will be possible to say that the promises have been fulfilled and the new government is no worse than the previous one. There was simply no money left to do more,” the expert said. Salaries will not be raised across the entire rate scale. “As international experience showed, only low-income groups really must be supported during the economic crisis,” added Leshchenko.

One of the ways of economizing is cutting expenditures on the state bureaucratic apparatus. Political decisions –to cut expenditures on the salaries of the president and the administrative apparatus, labor payments, government vehicles and their maintenance is not likely to result in a reduction in spending. Ideally, if expenditures in every ministry and institution of the civil service are cut by 20%, UAH 38 bn can be saved from the total UAH 194 bn spent on public administration in 2009. Be that as it may, it is not likely that everybody will zealously dedicate their time and efforts to fulfill the president’s wishes.