The minimum salary and subsistence minimum increase

The sizes of the minimum salary and a subsistence minimum according to the Law No. 749 – V from March 15, 2007, the analysis of dependence of the minimum insurance fee, HO authorized capital, and also an order of deduction of contributions in 2007, the size of the minimum pension on age are given.

On March 15 the Verkhovna Rada of Ukraine passed of the current year the Law No. 749-V About modification of the Law of Ukraine About the Government budget of Ukraine for 2007 * according to which the sizes of a subsistence minimum and minimum wage were increased

Minimum wage

According to again adopted Law the size of minimum wage in Ukraine changes as follows.

Table 1

Minimum wage increase in 2007

Pay attention: minimum wage change for 2007 doesn’t influence on

the size of a tax social concession as the size of a privilege depends only on the minimum wage established for January 1 of fiscal year (Law No. 889 subitem 6.1.1).

Minimum insurance fee

Minimum wage change pri­velo to change of the minimum insurance fee (further – MSV). Let’s remind that for a pension naznacheyoniya on age the insurance experience joins only those periods throughout which the fizichesyoky person was insured in system of pension insurance and for which insurance fees at a rate of not less MSV (Law No. 1058 Art. 24) monthly were paid.

MSV pays off by multiplication of the minimalyyony salary operating at the moment of payment of a salary (income), to a rate of a strayokhovy contribution.

The rate of an insurance fee for MSV calculation in 2007 makes:

• for the individuals working at the enterprises ~ payers of FSN – 13,78 % (13,28 % + 0,5 %);

• for the individuals working on predpriyati­yax, FSN not being payers – 33,7 % (33,2 % + 0,5 %);

• for business owners – 33,2 %.

About the changes of the MSV size provided for 2007, it is possible to judge according to tab. 2.

Table 2

Change of the MSV size in 2007

* the Law came into force from the date of its publication – on March 28, 2007 (Uryadovy a kur’er from 28.03.07 of No. 55).

Minimum size of an authorized capital of economic societies

Let’s remind that the size of an authorized capital depends on the size of minimum wage opened and closed joint stock companies (1 250 minimum wages), and also societies with limited and additional liability (100 minimum wages) (Art. 24 and Law No. 1576 Art. 52).

Table 3

The minimum size of an authorized capital of economic societies in 2007

Table 4

Subsistence minimum

Changes in the size of a subsistence minimum

The rate of a contribution to social insurance depends on the size of a subsistence minimum on temporary disability.

Contributions to this type of social insurance uder­zhivayutsya next sizes (Law No. 2213 Art. 1):

0,5 % – for the hired workers, which salary below a subsistence minimum, ustanovlenyony for the able-bodied person;

1 % – for the hired workers, which salary above a subsistence minimum, ustanovlenyony for the able-bodied person.

Table 5

Order of deduction of contributions in 2007

The order of deduction of contributions to a pension strakhoyovaniye depends on the size of a subsistence minimum also. So, in 2007 pension contributions uderzhi­vayutsya in such order:

• 0,5 % – from a part of the income which is not exceeding prozhiyotochny to a minimum for the able-bodied person;

• 2 % – from a part of the income exceeding a subsistence minimum for the able-bodied person.

The size of the minimum pension on age

Since April 1 and since October 1 of the current year for an opredeyoleniye of the minimum size of pension on age pri­menyaetsya a subsistence minimum for the persons which have lost work capacity, increased by 1 percent (according to the changes brought in Art. 62 of the Law about gos­byudzhete for 2007).

Thus, the minimum size of pension on voz­rastu in 2007 makes: since April 1 – 410,06 UAH. (406 UAH. + 1 %); since October 1 – 415,11 UAH. (411 UAH. + 1 %).

List of documents

1. The law No. 889 – the Law of Ukraine from 22.05.03 of No. 889-IV About a tax on the income of individuals.

2. The law No. 1058 – the Law of Ukraine from 09.07.03 of No. 1058-IV About an obligatory state pension strakhoyovaniye.

3. The law No. 1576 – the Law of Ukraine from 19.09.91 of No. 1576-XII About economic societies.

(On Balans-Agro newspaper materials).