Ministry of labor: minimum wage increase for three years by 53%

MOSCOW, September 18. /TASS/. The minimum wage (SMIC), which is 7.8 thousand rubles, three years will rise by more than 50%, according to a press release from the labour Ministry released on Monday.

The press service of the Ministry, Recalling the words of Deputy Minister of labour and social protection of the Russian Federation Lyubov Eltsova, reports that from January 1, 2018 the minimum wage will be 9,489 thousand rubles, which equals 85% of the subsistence minimum for the II quarter of 2017. Now the cost of living is 10.7 thousand rubles. From January 2019, it is planned to increase the minimum wage to 100% of the subsistence minimum.

“For three years will the total increase in the minimum wage at 53%. While the decline in the subsistence level the minimum wage will not be recalculated in the smaller side,” – said in the Ministry.

Total expenditures in the public sector by raising the minimum wage will be in 2018 of 26.2 billion rubles, including from the Federal budget of 7.2 billion rubles in 2019 – 43.9 billion rubles, including from the Federal budget – 12 billion rubles, according to the Ministry of labor.

According to the Department, a bill to gradually raise the minimum wage affects 4 million workers.

On the minimum wage and living wage

The minimum wage is the minimum size of salaries before deduction of the tax to incomes of physical persons. From the value of the minimum wage depends on the size of temporary disability benefit (for example, the “hospital”), maternity; the payment of able-bodied citizens who are caring for a disabled child from childhood; and the size of grants and the minimum unemployment benefit. Based on the minimum wage are also calculated contributions to pension and insurance funds.

The subsistence minimum is determined at the end of each quarter and is calculated on the basis of the consumer basket and Rosstat data about the level of consumer prices for foodstuffs, non-food goods and services.

In the fourth quarter of 2016, the average Russian subsistence minimum was $ 9,691 thousand rubles. For the working population it was recorded at 10,466 thousand rubles, for pensioners – 8 thousand rubles, and for children – 9,434 thousand rubles.