The Law of Ukraine
On Indexation of Population Monetary Incomes
Date of Entry into Force:
August 7, 1991
The Law of Ukraine “On Indexation of Population Monetary Incomes” was stated in a new wording by the Law of Ukraine N 491-IV of February 6, 2003.
The Law determines legal, economic and organizational grounds of maintaining purchasing capacity of Ukrainian population in conditions of price increase with the purpose to observe set by the Constitution of Ukraine guarantees concerning provision of sufficient living standards of Ukrainian population.
The subjects to indexation shall be Ukrainian population's monetary incomes within the limits of living minimum set for the respective social and demographic groups of population.
According to the norms of the Law subjects to monetary indexation on the territory of Ukraine shall be: pensions, scholarships, payment for work, sums of payments done by the legislation on obligatory state social insurance and sums of compensation for harm resulted in worker's being cripple or other health damage as well as sums paid to persons who have the right to compensation in case of loss of bread-winner. Monetary profits shall be indexed in the places of their receipt.
Index of consumer prices shall be calculated by the specially authorized central body of executive power in the sphere of statistics. Indexation shall be conducted in case when amount of consumer prices index exceeds indexation barrier and is 101%. Indexation shall be conducted not later than the 10th day of the month following the accounting month. Indexation figures shall be published in official periodic editions.
Legal entities shall conduct funds indexation at their own expense. Enterprises, institutions and organizations financed or donated from the State Budget of Ukraine shall conduct indexation from their own funds and funds of State Budget of Ukraine.
Monetary incomes of population may be indexed on decision of local self-government bodies for the funds of respective local budget taking into consideration regional consumer prices index.
Representatives of public organizations shall have the right to participate in public expert council on indexation which is created at the Cabinet of Ministers of Ukraine, in oblast state administrations, in executive bodies of city councils of Kyiv and Sevastopol. Expert council has the status of consultative body.
Control over adherence to the legislation on indexation of population monetary incomes shall be executed by the respective bodies of state power, bodies of local self-government. In case of violation of norms relating to the procedure of population monetary incomes indexation, the guilty persons shall bear responsibility as stipulated by the legislation.