Effective salary policy as a component of the development strategy

Abstract

The inefficient distribution of income in society creates a number of problems, the main of which are the following: approved social standards are at least two times lower than the actual value of the minimum consumer basket, half of the Pension Fund's income is formed at the expense of subsidies, and half of the country's households need subsidies to pay for housing and communal services. As a result, there is no solvent demand for goods and services on the market, which slows down the socio-economic development of the state. The need for radical improvement of the principles of income distribution in society determines the relevance of the research topic. The task is to determine the legal means of effective distribution of income in order to accelerate the socio-economic development of the state. The drivers of economic growth based on wages and/or profits of enterprises are analyzed. However, none of the possibilities will be realized in the absence of a stable or at least predictable exchange rate of the hryvnia, a progressive income tax system and fair market prices. The socialist ideology of the connection of wages with labor productivity, which is equated with labor intensity, does not allow to implement the optimal distribution of incomes and restrains the socio-economic development of the state. Labor productivity is determined by the level of production equipment and technology, the progressiveness of technological processes, the use of innovative materials, the introduction of patents and know-how, etc., which provides for higher qualification of personnel and higher wages and determines the direction of using the received profits and attracting investments. The regulator of the use of profits is the tax system and progressive tax rates. Income distribution in society should be determined by acceptable social standards and ensured by the application of progressive personal income tax rates. Amendments to the Tax Code of Ukraine have been proposed, which will ensure the solution of the set tasks