Draft bill #12184-1 of November 21, 2024
Status: sent for review to the Committee on Humanitarian and Information Policy
Cosponsors: 11 MPs from the Servant of the People faction and independents with Dmytro Razumkov as the first signatory
Who is affected: families with children, the Ministry of Social Policy, and the Cabinet of Ministers
Summary:
- childbirth assistance will be calculated based on the minimum wage (as of April 1, 2024, it amounts to 8,000 UAH)
- childbirth assistance will amount to 38 times the minimum wage (currently, 304,000 UAH), and will be paid in parts:
- a one-time payment of 3 minimum wages (currently, 24,000 UAH)
- the remaining assistance will be paid over 35 months in equal installments (8,000 UAH) under the procedure that will be developed and approved by the Cabinet of Ministers.
What is right: calculation of childbirth assistance based on the minimum wage automatically accounts for changes in the standard of living and price changes. This will help to avoid situations where fixed amounts become devalued due to inflation, reducing their real purchasing power.
Why this is important: increase of childbirth assistance is an important step, but on its own, it does not solve the problem of low birth rates. Real encouragement of childbirth requires a broader strategy that considers various aspects of family life. Experiences from European countries, such as Sweden, demonstrate that only a sound combination of financial assistance with a developed social policy and the creation of conditions for reconciling work and child-rearing leads to a stable birth rate. Mere financial incentives may help to overcome certain economic difficulties, but without additional reforms, they will not resolve issues of uncertainty about the future.
The increase in assistance is part of the solution, but real results will be possible only with a comprehensive approach that considers all aspects of the well-being of the families.
Background information: at the beginning of October, the Cabinet approved the Demographic Development Strategy prepared by the Ministry of Social Policy.
Additional information:
- Points Considered podcast: Demographic strategy: how it will help and how not to fail it
- Ok, So What? podcast, exclusive episode: Demographic strategy is not about having children