The minimum wage is crucial for the legalization of manpower in Uzbekistan. A number of big companies have been heading away from paying wages off the books towards the legalization of their workers in recent years. It is noteworthy that this has begun to be demanded by workers who enter into pension, insurance and credit relations and who are aware their rights.
However, a large number of employers still continue to pay the minimum official wage on their books for their employees paying them higher wages in fact, to evade paying higher taxes.
Therefore, the minimum wage (currently 1,155,000 soums, or 90 USD) should be raised at a rate higher than the rate at which budget salaries and pensions are inflation readjusted. Also, a minimum wage for hourly work should also be set (say, at least 10 thousand soums per hour). In Uzbekistan, most work in a number of sectors is hourly or seasonal, not for indefinite term. This will benefit workers first of all, and the labor market, which remains in shadow, will become more stable, which means that the state will also benefit.
