Economic

“Dear government”: how the wages of Ukrainian deputies and officials changed during the war

Recently, the Internet community was shaken by an angry Facebook post of deputy Oleksandra Ustinova. People’s elected representatives were outraged by the fact of receiving a salary 5 times lower than that of the heads of staff of the Verkhovna Rada of Ukraine (VRU). Ustinova accuses the leadership of the Verkhovna Rada of issuing bonuses to themselves “times higher than salaries”.

IA “FAKT” analyzed the salaries of deputies and officials during the war.

Back in 2019, People’s Deputy Hanna Skorokhod, being expelled from the “Servant of the People” faction, accused the deputies of receiving shady $5,000. And already in 2020, the notorious people’s deputy from the “Servant of the People” Geo Leros accused 236 deputies of fraud with informal extra payments.  4 years have passed, and once again the salaries of officials are troubling the minds of society.

The salaries of people’s deputies and employees of the Apparatus have only one common feature – they consist of salary and allowances. However, the salaries of civil servants – employees of the Apparatus – and people’s deputies are formed differently. It is the salaries that should be compared, since allowances are often individual (for example, for years of service).

The salary of the employees of the Apparatus is determined by the Cabinet of Ministers resolution, which describes the levels of state bodies, categories and types of positions of all civil servants. Top officials of the Apparatus receive almost five times higher salaries (up to UAH 40,100 per month) than ordinary employees (from UAH 8,700 per month). While, according to the Law of Ukraine “On the Status of a People’s Deputy”, the deputy’s salary is set by the Verkhovna Rada, that is, by the deputies themselves.

European experience and conventional logic indicate that the formation of salaries of employees of the Apparatus of the Verkhovna Rada and people’s deputies should not be based on their mathematical comparison. It should be proportional to the level of responsibility, which will make it possible to attract professional and talented people to the management of the state, and not stimulate corrupt practices.

A 2023 assessment of the state of public administration by the SIGMA Program found that public sector salaries are not competitive with the private sector, and wartime turnover has risen to critical levels.

Since January 2024, salaries of people’s elected officials have been increased in Ukraine due to the revision of the living wage. However, in addition to salary, deputies will receive funds for activity compensation, money for renting an apartment, as well as bonuses for work intensity. For example, according to declaration for 2023, Speaker Ruslan Stefanchuk last year received UAH 795,325, that is, UAH 66,277.08 per month. At the same time, he received 544,800 in compensation for expenses.

In 2022 Stefanchuk declared 478,833 in reimbursement of expenses from BP for travel and housing, although he owns housing and a car.

At the same time, the Chairman of the Verkhovna Rada of Ukraine denied the information that he received funds for compensation for housing and travel in 2021 and 2022.

How salaries in the Verkhovna Rada increased in 2024

  • first deputy – from 30,866 to 34,822 hryvnias;
  • deputy – from 29,524 to 33,308 hryvnias;
  • head of the committee – from 28,182 to 31,794 hryvnias;
  • committee member – from 26,840 to 30,280 hryvnias.

In addition, every member of parliament who does not have his own home in Kyiv (or the home is not registered for him) has the right to compensation for the cost of rent. They pay 237.9 thousand hryvnias per year, i.e. 19.8 thousand hryvnias per month. People’s deputies rent apartments in the center of Kyiv for this money.

Among the most common compensations for people’s deputies are:

  • for the salary of assistants – UAH 88.4 thousand;
  • for performing deputy duties – 7.5 thousand hryvnias;
  • UAH 19.4 thousand is allocated for compensation of taxes on salaries.

In addition to this, if the deputy has certain ranks, he also receives the following allowances:

  • for the rank of “people’s” – 13%;
  • for the title “meritorious” – 7%;
  • for the scientific degree of Doctor of Sciences – 8%;
  • for the degree of candidate of sciences – 5%;
  • for labor intensity – 4%.
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A total of UAH 1.4 billion has been allocated to the State Budget for the Verkhovna Rada this year. Last year, the parliament cost the state 1.26 billion hryvnias.

According to the analytical data of the YouControl R&D center, when comparing the average annual indicator, it was established that the salary level of people’s deputies has a tendency to increase from year to year. So, in 2023, this indicator increased by 36% compared to 2022, and in 2024 – by 61% compared to 2023. This situation is not surprising, because being associated with changes in the living wage, the salary of deputies will increase with it automatically every time. But, compared to the salaries of VRU officials, it will still lag behind. According to calculations, the salary of a people’s deputy is equal to 10 subsistence minimums, and the head of the state apparatus – to 12 such minimums, which makes a difference of 20%.

Regarding salaries of Government officials

Speaking about the reform of public administration, Prime Minister Denys Shmyhal said:

“The government continues the reform of public administration. Today we are approving a document on a new system of remuneration based on the qualifications of positions and grades. From now on, none of the managers will be able to charge “exorbitant bonuses, allowances and surcharges” at their own will. According to conditions of the reform, 70% will be the salary of a civil servant, and 30% will be bonuses.”

The Ministry of Finance of Ukraine has launched an analytical tool for the purpose of transparency of financing and the efficiency of the use of budget funds. The so-called dashboard makes it possible to monitor the state of wages and the quantitative composition of employees of state bodies and local state administrations.

According to the dashboard, the National Commission for State Regulation of Energy and Utilities (NKREKP) is among the leaders in terms of salaries. The salary of managers is 400.7 thousand UAH, and the salary of an ordinary employee is 68.9 thousand UAH

According to the Government portal, the salary for April 2024 is as follows:

the actual salary received by the Prime Minister of Ukraine D. A. Shmygal amounted to 77,404.77 hryvnias.

The accrued salary is UAH 96,155.00, including:

– official salary – 48,077.50 hryvnias;

– salary for the time of business trip – 48,077.50 hryvnias.

The salary actually received by the First Vice-Prime Minister of Ukraine – Minister of Economy of Ukraine Yu. A. Svyridenko was 72,207.39 hryvnias.

The accrued salary is 89,698.62 hryvnias, including:

– official salary – 43,706.82 hryvnias;

– salary for the time of business trip – 34,965.44 hryvnias;

– temporary disability benefit at the expense of the organization – 11,026.36 hryvnias;

The actual salary received by O. V. Stefanishyna, the Vice Prime Minister for European and Euro-Atlantic Integration of Ukraine, was 80,842.68 hryvnias.

The accrued salary is 100,425.70 hryvnias, including:

– official salary – 83,042.95 hryvnias;

– salary for the time of business trip – 17,382.75 hryvnias.

The actual salary received by the Vice-Prime Minister of Ukraine – Minister for Reintegration of the Temporarily Occupied Territories of Ukraine I. A. Vereshchuk was 77,404.77 hryvnias.

The accrued salary is UAH 96,155.00, including:

– official salary – 65,560.23 hryvnias;

– salary for the time of business trip – 30,594.77 hryvnias.

The actual salary received by the Vice-Prime Minister of Ukraine for Innovations, Development of Education, Science and Technologies – Minister of Digital Transformation of Ukraine M. A. Fedorov was 77,404.77 hryvnias.

The accrued salary is UAH 96,155.00, including:

– official salary – 96155.00 hryvnias.

The salary actually received by the Vice-Prime Minister for the Reconstruction of Ukraine – Minister of Development of Communities, Territories and Infrastructure of Ukraine O. M. Kubrakov amounted to 77,404.77 hryvnias.

The accrued salary is UAH 96,155.00, including:

– official salary – 74,301.59 hryvnias;

– salary for the time of business trip – 21,853.41 hryvnias.

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In fact, the salary received by the Minister of the Cabinet of Ministers of Ukraine O. M. Nemchinov amounted to 72,196.42 hryvnias.

The accrued salary is 178,914.93 hryvnias, including:

– official salary — 87413.6487413.64 hryvnias;

– vacation – 2780.57 hryvnias;

– financial assistance for rehabilitation — 84350.0484350.04 hryvnias;

– salary for the time of business trip – 4370.68 hryvnias.

The salary actually received by the State Secretary of the Cabinet of Ministers of Ukraine Yarema O.Y. was 110,128.90 hryvnias.

The accrued salary is 136,806.08 hryvnias, including:

– official salary – 71,010.55 hryvnias;

– allowance for rank – 800.00 hryvnias;

– seniority allowance – 25,730.88 hryvnias;

– allowance for work with secret documents – 18,379.20 hryvnias;

– salary for the time of business trip – 20,885.45 hryvnias.

The actual salary received by the First Deputy State Secretary of the Cabinet of Ministers of Ukraine, K. M. Maryevich, was 82,357.33 hryvnias.

The accrued salary is 102,307.25 hryvnias, including:

– official salary – 87301.00 hryvnias;

– allowance for rank – 800.00 hryvnias;

– seniority allowance – 14,206.25 hryvnias.

The salary actually received by the Deputy State Secretary of the Cabinet of Ministers of Ukraine O. M. Voytovych was 99,735.00 hryvnias.

The accrued salary is 123,894.41 hryvnias, including:

– official salary – 67,459.86 hryvnias;

– allowance for rank – 800.00 hryvnias;

– seniority allowance – 22,698.26 hryvnias;

– allowance for work with secret documents – 13,095.15 hryvnias.

– salary for the time of business trip – 19,841.14 hryvnias.

In fact, the salary received by the Deputy State Secretary of the Cabinet of Ministers of Ukraine P.B. Polyansky amounted to 92,165.50 hryvnias.

The accrued salary is 114,491.30 hryvnias, including:

– official salary – 87301.00 hryvnias;

– allowance for rank – 1000.00 hryvnias;

– seniority allowance – 26,190.30 hryvnias.

The actual salary received by the Deputy State Secretary of the Cabinet of Ministers of Ukraine I. O. Yaremenko amounted to 102,546.09 hryvnias.

The accrued salary is 127,386.45 hryvnias, including:

– official salary — 75396.3275396.32 hryvnias;

– allowance for rank – 800.00 hryvnias;

– seniority allowance – 26,190.30 hryvnias;

– allowance for work with secret documents — 13095.1513095.15 hryvnias;

– salary for the time of business trip – 11904.68 hryvnias.

In fact, the salary received by the Deputy State Secretary of the Cabinet of Ministers of Ukraine Fedorchuk V. Ya. was 102,707.09 hryvnias.

The accrued salary is 127,586.45 hryvnias, including:

– official salary – 87301.00 hryvnias;

– allowance for rank – 1000.00 hryvnias;

– seniority allowance – 26,190.30 hryvnias;

– allowance for work with secret documents – 13,095.15 hryvnias.

This is what the salaries and compensations of our powerful officials look like. At the same time, one should take into account the well-known fact that extra-parliamentary interest groups “convert” their informal support to people’s deputies into influence on parliamentary decision-making. But for some reason, today, when the country is in a tense situation due to hostilities and economic instability, the People’s Deputies decided to be indignant at its insufficient level. And despite the fact that the salary increases every year, the deputies whisper on the sidelines that it is impossible to live in Kyiv on such a salary, because they also travel abroad at their own expense.

And one more interesting point. During the last time, the rules for the formation of salaries of Apparatus employees and people’s deputies have not undergone drastic changes. If we compare the declarations of the employees of the Apparatus, who hold management positions, and people’s deputies, then the salary ratio was approximately the same in the period from 2019 to 2023. However, the problem and public dissatisfaction of deputies with their salaries for some reason became actualized in the public space precisely in 2024.

And then what to say about elderly people with a minimum pension of UAH 2,361, or a student with a stipend of UAH 1,510, or an ordinary worker with an average salary of UAH 12,000? It is with such incomes that they survive now.

 

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