On June 11, it became known about the bill of the head of the parliamentary committee on economic development Dmitry Natalukha and other deputies on the introduction of so-called economic reservation in Ukraine. It provides the opportunity for employers to retain important specialists in difficult times for the country, but by paying an increased military tax.
Economic booking models and criteria
Economy booking models offered vary in terms of conditions. According to the main bill, the reservation of specialists requires the payment of a military tax in the amount of 20.4 thousand UAH. per month for each employee. Alternative documents offer other options: in the first case, booking is permitted subject to payment to the employee of a salary of more than 36,336 UAH, in the second - a combination of a high salary or payment of military duty for individual entrepreneurs.
To use the reservation mechanism, the company must meet certain requirements established by the Ministry of Economy, including the level of salaries, the absence of debt on the single social contribution (USC) and a certain level of foreign currency earnings.
Impact on business and workers
The consequences of such policies could be significant for both businesses and employees. On the one hand, this allows enterprises to retain key specialists, but on the other hand, the financial burden on companies is growing. For businesses, especially small and medium-sized ones, such conditions can be a significant challenge.
For now, the initiative is still being discussed and requires a detailed analysis of its potential impact on the Ukrainian economy. It is expected that economic reservation will help reduce the social risks of job losses during the country's critical period, as well as provide additional revenue to the state budget.
However, to achieve these goals, it is important to find a balance between the need to support Ukrainian business and ensure social protection for workers. Developing clear booking criteria and flexible compensation mechanisms for companies will be key to the success of this initiative.
Who do businesses book and how?
As of May 2023, the number of reserved workers in Ukraine reached 700 thousand people, as reported by the Minister of Digital Transformation Mikhail Fedorov. About a third of them are energy sector specialists who play a key role in maintaining the country's stability in times of crisis. However, more detailed data on the specialization of the booked specialists remains unavailable to the general public due to the non-public nature of this information.
The introduction of an economic reservation mechanism opens up the opportunity for businesses to retain valuable human resources in a difficult economic situation. A chapter with vacancies has already appeared on the employment platform work.ua, where employers indicate the possibility of booking workers. Currently, 6.8 thousand such positions are available on the site out of more than 100 thousand available advertisements.
Most often, the booking option is offered for blue-collar occupations and production, particularly in the energy industry. However, when compared with the total number of advertisements, vacancies in logistics and foreign trade activities also have a significant share of reserved positions, with every tenth vacancy available for reservation.
The smallest number of vacancies with bookings is observed in the field of design and beauty, where the share of such advertisements does not exceed 1%. However, even in these sectors, you can find job advertisements that include a booking option, for example for receiving storekeepers or florists.
Economic booking: how small cities become leaders in the number of booked vacancies
The economic reservation initiative in Ukraine, aimed at ensuring the stability of the labor market in war conditions, turned out to be especially relevant not only for large cities, but also for smaller settlements. According to data published in March 2023, only 3.5% of new vacancies in Kyiv were bookable, while in small cities this figure was significantly higher.
One striking example was the town of Busk in the Lviv region, where several dozen vacancies were available with the possibility of booking. This became possible thanks to the expansion of the capacity of large local employers, such as the processing company Feednova and the Ukrainian Agrarian Holding. Yes, Busk demonstrates that small towns can become attractive to professionals seeking stability and job security.
Challenges and opportunities for relocated businesses
The problem of the shortage of qualified workers has become especially relevant for enterprises forced to relocate to the west of the country as a result of the war. This forced many to more actively attract labor, including through the economic reservation mechanism. Relocated companies face the challenge of adapting to new conditions and competing for employees in the local labor market.
Data suggests that at the regional level, more vacancies with reservations relative to the population are available in the western regions of Ukraine. This may indicate the formation of new economic hubs and employment centers, which creates additional opportunities for the development of local communities.
Economic reservation: splitting society or protecting business?
The introduction of economic reservations in Ukraine caused a mixed reaction from the public and experts. The initiative, aimed at ensuring stability and retaining key personnel in enterprises under martial law, has generated discussions about social justice and equality before the law.
Oleg Simoroz, a veteran of the Russian-Ukrainian war, sharply criticized the idea of economic reservation, viewing it as discrimination based on property qualifications. His grievances center on the fact that such policies divide society between those who can afford to avoid military service due to high income or business position, and those who are forced to do their duty to the country without exception.
“What they want to do now is that a fool serves in the army, who cannot earn money, pay for his economic reservation, that is, the poor, stingy serve in the Armed Forces of Ukraine, and successful “men” do not serve in the army, because it is not comme il faut. You know, the ones who still do. I thought of this - people are so disconnected from reality, from society. public figure.
The introduction of economic reservation criteria, such as salary levels or foreign exchange earnings, allows large companies in small cities to retain their specialists. However, this creates unequal conditions for different categories of the population, especially in conditions where the majority of workers receive salaries that do not allow them to take advantage of this opportunity.
Simoroz suggests finding other ways to fill the economy, for example through taxation of large businesses and confiscation of the property of pro-Russian politicians. Such measures, in his opinion, would reduce fiscal pressure on medium and small businesses, and also ensure a more equitable distribution of responsibilities among all citizens.
The veteran notes the importance of viewing military service as an honor and duty to the country for everyone without exception. The initiative, which provides for the possibility of avoiding service for money, creates risks for the idea of national unity and the joint struggle for the independence and sovereignty of Ukraine.
The economic reservation mechanism opens up new opportunities for companies to attract and retain valuable employees. This option can provide additional incentive to job seekers considering job offers, providing them with additional job security during uncertain times.
On the other hand, the debate surrounding economic reservation raises important questions about social justice, equality and shared responsibility in wartime. It is important to find a solution that strengthens society, provides effective support for the state and does not create additional divisions between its citizens.
