Annotation

The main purpose of the article is to carry out a comparative analysis of the mechanism of regulation of minimum wages in foreign countries and formation of an effective system of regulation of minimum wages in Ukraine.. The size of the minimum wage in Ukraine is determined taking into account: the value of the size of the minimum consumer budget with the gradual convergence of these indicators as the country's economy gets stabilized and developed; the general average wage level; labor productivity, employment rate and other economic conditions. There are 5 types of countries according to the way they set minimum wages among European countries and CIS countries. The first type includes France, Romania, the Czech Republic, Slovenia, Luxembourg, the Netherlands, Portugal, the Russian Federation, Belarus, and Kazakhstan. In those countries, the minimum wage is established by the law at the national level. The second type includes Belgium, Denmark, Greece, Bulgaria, in which the minimum wage is established within the framework of national collective bargaining. The third type includes Germany, Austria, Spain, Italy and Hungary, in which the minimum wage is established in the framework of collective bargaining at the level of various sectors of the economy. The fourth category includes Finland, Norway and Sweden, where collective minimum wage agreements cover all employees, but without obligatory distribution to entrepreneurs, who have not signed these agreements. In the fifth type (England, Ireland), the minimum wage is set by the government only for certain types of economic activity with low wages. It is necessary to revise the mechanism of regulation of minimum wages in terms of strengthening of the state control functions, which determines the necessary development of legislation and methodology of state regulation of minimum wages in Ukraine.