Bìznes Inform (Jan 2022)
The Governmental Regulation of Remuneration: World Experience, Comparisons, Opportunities for Implementation
Abstract
The purpose of writing the article is to analyze the nature of the transformation of governmental regulation of wages both in the world and in Ukraine in epidemiological conditions. In the vast majority of countries, there is currently a profound transformation of governmental regulation of remuneration at the macro level. The Ukrainian labor market is also gradually adapting to changes, innovations and modern socioeconomic realities. For example, the Law of Ukraine «On Amendments to Certain Legislative Acts of Ukraine Aimed at Providing Additional Social and Economic Guarantees in Connection with the Spread of Coronavirus disease (COVID-19)» was adopted as a kind of reaction of the State to the need for changes in the field of remuneration. To compare the results of the State’s policy in the field of remuneration, as well as the relationship between social partners in the context of the COVID-19 pandemic, the average monthly wage in 2019-2021 can be used. It should be noted that not always the growth of average monthly wages indicates the economic growth of the country. The main indicator of the country’s economic development is gross domestic product (GDP). The coronavirus pandemic, quite naturally, had a negative impact on the economies of countries – in most countries there is a decrease in GDP. Ensuring growth of wages in these conditions is an indicator of strong social policy and/or social and labor relations in the field of labor remuneration. By means of social policy in the country, the State regulates the minimum wage. Most countries have increased the minimum wage to stabilize labor incomes during the pandemic. The main instrument of the State’s influence on wages in Ireland, Germany, Norway, Finland and the United States during this period is the provision of temporary subsidies for wages, which are introduced to save jobs and support the income of employees. Also, the experience of governmental regulation of wages in developed countries during the pandemic includes payment of subsidies to employers, tax crediting, and reduction of the tax rate. At the same time, the implementing of foreign practices in the field of remuneration requires taking into account Ukrainian realities.
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