Putin raised the minimum wage

The President of Russia Vladimir Putin signed the law on increase from 1 July 2016 the minimum wage (SMIC) by more than 20% — up to 7500 RUB. Document published on the official portal of legal information.

The previous increase in the minimum wage was implemented on 1 January 2016. Then the minimum wage was increased by 4% and amounted to RUB 6204

The draft law on raising the minimum wage was passed by the Parliament on may 17 and approved by the Federation Council on may 25. The authors of the initiative were the deputies of the state Duma Sergei Neverov, Vladimir Vasiliev, Olga batalina and Andrei Isayev, as well as members of the Federation Council Galina Karelova and Valery Ryazansky.

In may batalina said, raising the minimum wage to 7,500 RUB. will be “a serious measure of income protection, which simultaneously reduces the income differentials in our society”. He noted that raising the minimum wage will affect about 1 million workers, of whom 87% work in state institutions. Most often it is women working in the public sector, mainly in education, and technical personnel, said the Deputy.

The decision to increase the minimum wage of Russians from 1 July 2016, 21% said Prime Minister Dmitry Medvedev at the end of may. Then he called on the deputies from “United Russia “as soon as possible” to prepare the bill and promptly to enact it.

However, the increase in the minimum wage will lead to proportional growth of insurance premiums of individual entrepreneurs, wrote. As said by the expert of the training center of the company “SKB Kontur”, Natalia Gorbova, “many small companies minimize the payment of personal income tax and insurance contributions that, without breaking the law, paid an official salary in the amount of the minimum wage. Now wages have to increase, and therefore, will increase payments for personal income tax”.