Minimum wages and living wages increased in Russia

 MOSCOW, January 1 - RIA Novosti. From January 1 this year in Russia, the size of the minimum wage (minimum wage) and the living wage is increasing . They will amount to 12,792 rubles and 11,653 rubles per month, respectively.

Minimum wages and living wages increased in Russia

In 2020, the Ministry of Labor presented a new procedure for calculating these indicators. Since the new year, the ratio of the minimum wage and the median wage is set at 42 percent, the ratio of the subsistence minimum to the median per capita income for the last year is 44.2 percent.

In addition, the size of the minimum wage will not be able to decrease even if the median wage level falls. The annual establishment of the minimum wage and the subsistence level should be supported by trade unions and employers.

According to the Ministry of Labor, these measures will contribute to improving the situation of citizens, since the increase in the living wage and the minimum wage will be higher than inflation. Also, the decision will make it possible to correct the situation in 60 regions where there is an underestimation of the living wage.

How it will affect pensions

Earlier, the deputy head of the Ministry of Labor, Andrei Pudov, said that the newest method of calculating the subsistence minimum would contribute to the growth of pensions.

"In this context, I am sure that with an increase in the median wages, the value of payments from which payments to the Pension Fund of Russia will also grow, respectively. More payments - more pensions. Summary: the value will change upwards." - said Pudov.

He, among other things, said that such decisions will lead to an increase in the interest to "whitewash" wages, since now its value directly affects the value of the living wage through the size of the median wage.