The theoretical basis of the formation of the labor costs and its impact on the determination of the nature of wages

The aim of the article is to examine existing theories and concepts of formation of the labor costs and their relationship with wages , as well as their methodological basis. The basic approaches to the nature of the category “labor costs” that exist in economic theory and practice have been investigated. The ways of combining the approaches of the labor theory of value and utility theory to determine the mechanism of the formation of a specific commodity value “labor services” with a view to the interests and needs of both employees and employers have been analyzed. The components of labor coasts and their relationship with wages have been considered. The basic models of labor costs` valuation taking into account the possibility of its reimbursement on the social and individual basis have been analyzed. The results of investigation show that the wage is a key element of the approximate recovery of commodity “labor services” and, in spite of the importance of other payments, principal, and largely independent form of existing the price of labor costs. The main attention should be given to the system of state social security as are prescribed by law and state regulations which defines certain proportion for sale of labor services, among which is the basic minimum wage.