You don't know how good you have it

Recently there was a news article here in the local english paper about the government looking to increase the minimum wage here. It was interesting because (well I didn't even know there was a minimum wage here) the minimum wage here....well it's pretty low. Based on a monthly scale, the current monthly minimum wage in Ukraine is 669UAH. The proposal was to increase it to 922UAH by the end of 2010.

Now, I don't know if that's for full time work, part time, or if you just work 1 hour a week you qualify for that - but it doesn't really matter. Let's look at some numbers to put 669UAH into perspective. The current US Federal minimum wage is $7.25 an hour, which, at 40 hours a week for 52 weeks, comes out to be just shy of $1,257 per month. Obviously you don't get to take this much home because of payroll taxes, but since I don't know the tax rate in Ukraine we'll just go with that number.

Now, obviously 669UAH isn't dollars, and for the sake of comparison the figure shouldn't be converted into dollars, but since you may be curious - at today's exchange rate 669 UAH equals about $81. EIGHT ONE. But what can it buy?

669 UAH will buy you about 83 bananas in Kiev, or 81 loaves of bread. Based on the price of the chicken in my fridge, it could also buy about 33 pounds of chicken. My guess is that you are better off with the $1,257. Obviously Kiev is expensive, its the NYC of Ukraine, so living out in the country this would go much longer. Last night I spent 37UAH on a large cup of hot chocolate - I'd be able to buy 18 of them with the minimum wage...and then be homeless and hungry for the rest of the month.

...So the bottom line here is that it would suck to be living on the minimum wage here in Ukraine. Interesting statistic - unemployment in Ukraine is only 2%. I'm actually quite shocked that it's that low. It may have something to do with the fact that the government gives you a maintenance/janitor type job if you want to receive unemployment benefits. So it's kinda like employed-unemployment, and quite possibly indentured servitude.