RAISING THE MINIMUM WAGES IN UKRAINE: ADVANTAGES AND DISADVANTAGES

The theoretical and methodical approaches to the formation of minimum wages in the country are substantiated. The positive and negative influence factors on the formation of the minimum wages level in Ukraine are determined. Attention is focused on the need to minimize the influence of negative factors and maximize the role of positive factors to increase not only nominal but also real wages of employees. It is noted that the increase of incomes of citizens positively influences on the increase of solvent demand of population in particular and socio-economic development of country as a whole. It is established that one of the main destabilizing factors of influence on the size of real wages is the constant depreciation of the national currency in relation to foreign currencies. It is noted that the spread of the shadow economy is a negative deterrent to the development of financial-economic system of the country. It is established that reducing the level of the shadow economy will increase jobs and increase wages of the population, as well as significantly increase revenues to budgets of different levels and reduce the deficit of the Pension Fund of the country. It is proved that wage growth should be closely linked to the real state of the economy, as its unreasonable increase may provoke inflationary processes and negatively affect the financial and economic situation in the state. It is found that the combination of macro and micro influence factors on the formation of the minimum wage creates the necessary foundation for the growth of its level, which should positively reflect on the socioeconomic well-being of citizens and the development of the national economy of the country