Compensation in the system of human capital reproduction in higher education institutions – theory and realities in Ukraine
Compensation in the system of human capital reproduction in higher education institutions – theory and realities in Ukraine

Summary/Abstract: The article is dedicated to identifying the challenges associatedwith personnel management in higher education institutions, witha particular focus on issues related to the remuneration systemfor academic and teaching staff at Ukrainian universities. Histor-ically, salary levels in Ukraine’s education sector have remainedrelatively low since the Soviet era. The article examines the es-sence of remuneration and its interpretation within various eco-nomic approaches, as well as presenting the primary functions ofwages. The purpose of this paper is to highlight the significanceof remuneration within the system of restoring the academic andpedagogical potential of universities. The article identifies the mainissues and challenges related to current methods and levels of sal-ary formation for academic and teaching staff in higher educationinstitutions. The analysis reveals that salaries in Ukraine’s educa-tion sector fail to fulfil their fundamental functions. This situationis a significant reason why talented young professionals often optto leave the education sector. It underscores the need for reformsin the remuneration system. The study concludes that the issue ofsalary formation in education pertains both to the methodologyand the structure of wages. Emphasis is placed on the method ofdetermining wages in the higher education sector and the currentwage levels in Ukraine. The article examines the tariff coefficientsand scales applicable to higher education lecturers in Ukraine asof 2023. By comparing the salary levels of academic and teachingstaff in national universities with the minimum social wage and av-erage household expenditures, the study concludes that lecturers’financial liquidity is critically low.

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