Salary and staff retirement plan of Ukraine’s agrarian sector

Economic Annals-ХХI: Volume 144, Issue 9-10(1), Pages: 69-72

Citation information:
Koval, L. (2014). Salary and staff retirement plan of Ukraine’s agrarian sector. Economic Annals-XXI, 9-10(1), 69-72. https://ea21journal.world/index.php/ea-v144-17/

Liudmyla Koval
PhD (Economics),
Rector,
Khmelnytskyi Cooperative Trade and Economic Institute
3 Kamianetska Str., Khmelnytskyi, 29000, Ukraine
ljudmila_koval@lenta.ru

Salary and staff retirement plan of Ukraine’s agrarian sector

Abstract. Introduction. Agriculture is the leading field of national economy of Ukraine. Powerful resource base provides that state has gained decent position in the world markets. However, Ukraine does not use its potential, gradually turning into an importer of food. Development of the agrarian sector inhibits a number of problems. One of these problems is inefficient social security system, provoking a decrease in productivity and efficiency of agrarian labour.

The purpose of the article is to analyze the current situation in payments and pensions for agrarians and to justify lines of pressing problems solving.

Results. The author has found that well-established in Ukraine welfare system is far from farmers market requirements, and is the factor that dis courages most rewarding part of the labour potential to work in rural areas. Particularly acute problem appeared before members of the private farms that were actually outside the social security system. The current system of payments and pensions in Ukraine is unable to solve the social problems of the agrarians, and only causes disruption in the real sector and provokes illegal employment. In this regard, Ukraine is now in search of ways to enhance the motivational mechanism for the farmers to live and work in the rural areas.

Conclusion. The welfare system improving needs reform of the legal framework for rural population in order to apply the incentive function of tax payments and form the necessary infrastructure of the agrarian labour market, including non-governmental occupational pension fund.

Keywords: Agrarian Sector; Salary; Staff Retirement Plan

JEL Classification: H55; J32; J43

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Received 06.08.2014