Dynamics of Living Standards Based on Factors of the Remuneration System

Abstract

The concepts “standard of living” and “quality of life” play an essential role in society. They are indicators of assessing the socio-economic situation in a country. In the paper the model the dynamics of living standards which makes it possible to substantiate management decisions on the formation of a remuneration system at enterprises, taking into account the financial security of employees is developed. The use of the model showed that the financial indicators of the salary system effectiveness at enterprises do not reflect its adequate impact on the living standard of employees. Namely, the positive tendencies of an increase in average salary and an increase in the salary bill do not fully ensure an increase in the level indicator reflecting the volume of consumption of basic food products. This is due to the fact that the level of the real salary index is insufficient to fully meet the needs of employees.