The Minimum Wage in Russia
The minimum wage in Russia is much higher than in many other countries. The official minimum wage is 190 dollars per month, but it can be anywhere from 350 to 450 dollars a month, depending on the region. Generally speaking, living expenses are not cheap – milk and bread costs about a dollar apiece, while beef and pork cost about 10 and eight dollars a kilo, respectively. And gasoline costs about 0.25 cents per liter. So, even though the minimum wage in Russia is relatively high, you can still get by.
Moscow and St. Petersburg have higher minimum wage levels than other regions
The minimum wage in Moscow and St. Petersburg is higher than the national average. The region’s labour market is diverse, with over 60% of the working population being disabled, with many trade unions granting concessions for their members. The minimum age to work is 18 years old, but can be lowered for certain summer jobs. Similarly, children can perform circus shows or other jobs as part of their education, but the minimum age is still 16. The labour law in Russia is quite strict on child labour, and men receive a third less than women for equal work. The recruitment methods used are also a factor in salaries. Women typically take low-paying jobs while men are often hired for higher-paying positions.
As a result, the minimum wage in St. Petersburg and Moscow is higher than in other regions of Russia. However, this doesn’t mean that salaries in these cities are comparable with those in the rest of Russia. In most regions, the minimum wage is under $100 a month, but in the capitals, minimum wages are significantly higher. And because Russian citizens have higher expectations and expectantly high salaries, these cities have higher wages than the rest of the country.
The cities’ economy is a complex system of governmental institutions. Although Moscow and St. Petersburg have higher minimum wage levels than other regions of Russia, there is still a considerable difference in the quality of government. In terms of education and employment opportunities, St. Petersburg and Moscow have more than double the national minimum wage. However, despite their higher salaries, many workers find it difficult to get jobs in these regions.
The Russian economy has undergone major transformations since the collapse of the Soviet Union. The country has shifted from a centrally planned to a market-based economy. However, while economic growth has stagnated in recent years, Russia remains a state-dominated economy, with a high concentration of wealth in the hands of officials. However, the government has recently implemented a minimum wage hike and increased pension benefits.
The cost of living in St. Petersburg and Moscow is relatively low. A single night in a hotel costs an average of 2,850 rubles. A lunch for one costs 500-600 rubles. While this amount may be insufficient to cover expenses for a week, the minimum wage in Moscow and St. Petersburg is more than enough to live comfortably for at least five days. However, it is not enough to cover the cost of expensive restaurants or nightclubs.
Holiday pay in Russia is another factor that affects minimum wages. As of 2021, there are 14 public holidays in Russia. Employers are required to pay 200% of the regular daily pay rate during these days. The list is updated frequently, and employers in Moscow and St. Petersburg must provide employees with at least 28 days of paid leave a year. Additional paid leave is permitted in certain situations.
Minimum wage is set annually at 42% of the median salary
According to the federal law of December 29, 2020, the minimum wage and living wages in Russia will be calculated according to a new formula. The minimum wage is set annually at 42% of the median salary for the previous year, calculated by the Russian National Statistics office Rosstat. In addition, the subsistence minimum is set at 44.2% of the per capita income for the Russian Federation in the previous year. These levels will be reviewed every five years.
The Russian Labor Code establishes the rules and regulations of employment. It specifies working conditions, wages, holidays, overtime, annual leave, and employment relations. The standard workweek may be no more than 40 hours. Overtime hours must be compensated at double the normal rate. The salary must be paid within 15 days following the payroll period. In addition, overtime compensation is required for each hour of work that is over four hours in two days.
Russian employees are entitled to paid sick leave in cases of illness or injury. In cases of illness, the employer must pay the sick leave allowance to the employee for the first three days. The amount of the allowance depends on the length of service and the number of days. However, it cannot exceed twenty percent of the employee’s monthly remuneration. The Russian government considers these conditions as the minimum wage for workers.
While the minimum wage is not increased significantly, it is still a significant amount of money for most workers in the country. The new minimum wage in Russia is based on the median salary, which is four percent below the median salary in EU countries. The median salary in Russia is slightly lower than the average salary in the country – 42,263 rubles per month. However, this low level is more than enough to cover the costs of living.
In 1999, the Russian government employed approximately 40 million people. Unemployment benefits were largely nonexistent because many people chose to stay in their jobs without paying. Those who lost their jobs were given unemployment benefits worth 75 percent of their average pay for twelve weeks, sixty percent for four months and forty percent for the following year. Each dependent of the employee is entitled to ten percent of the worker’s monthly minimum salary. The payments are paid out of the two percent payroll tax on the salary.
In 2014, the government issued a decree to prohibit the exploitation of foreign workers. This decree came about because many foreign textile workers were being exploited by their Russian and Chinese counterparts. As a result, Yeltsin banned exploitation of foreign workers in the Russian textile industry. In Vladivostok, the Russian and Chinese workers were being paid as low as eleven cents an hour.
The UK’s minimum wage is linked to the consumer price index. The minimum wage for young workers was frozen during the recent recession, but this may have kept the youth employed. However, such flexibility can cause confusion and lead to non-compliance. In Russia, the minimum wage has increased by four percent since 2009.
The minimum wage is politically charged and complex to administer. It is also difficult to establish comparative evidence to determine how effective these minimum wage policies are. Nevertheless, minimum wages have become an accepted part of the anti-poverty policy landscape, and they are widely implemented to combat extremes of low pay. But the rates and structures differ enormously between countries. In some countries, experts advise governments on the minimum wage rates and different rates are used for different groups of workers.