The Minister of labour and social protection RF Maxim Topilin

© Anton novoderezhkin/TASS

MOSCOW, may 26. /TASS/. A bill to raise the minimum wage to the subsistence minimum working age population is included in the Russian government. According to the document, it is planned to gradually raise the minimum wage: from 1 January 2018 it will reach 90% of the subsistence minimum of able-bodied population as of 1 January 2019 for 100%. This was announced by labor Minister Maxim Topilin.

Earlier, the Chairman of the Russian government Dmitry Medvedev instructed to prepare a bill to raise the minimum wage. Now the cost of living is 10.7 thousand rubles, and the minimum wage – 7,5 thousand roubles a month. From 1 July 2017, the minimum wage will amount to 7.8 thousand rubles.

According to the Ministry of labor estimates, indexing the minimum wage after 2018 will need to allocate from the Federal budget of about 24.6 billion rubles . These funds will go to raising the minimum wage for employees of Federal government agencies. The expenses of the employers will amount to almost 44 billion rubles. The biggest expenses have budgets of regions – nearly 56 billion roubles.

Expert opinions

To consider all options for raising the minimum wage in the state Duma was established Interfactional working group. She took into account the views of all interested parties and considered three main options for establishing an increased minimum wage: hourly; at the level of the subsistence minimum of able-bodied population in Russia as a whole; on the subsistence level in the region.

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Earlier, Deputy Prime Minister Olga Golodets stressed the need to take into account the opinion of employers, as a significant number of citizens receive a salary at the level of the minimum wage. Vice-Prime Minister urged to act with extreme caution, “not to close jobs that have no replacement”.

Deputy Director of the Institute of world economy and international relations named Primakov Yevgeny Gontmakher also previously expressed similar concerns. Because raising the minimum wage extends to the entire economy, for many small businesses, this means additional costs, he explained. Of small businesses that close, go in the shade or move workers to part time, said Gontmakher.

According to the Ministry of labour and social protection, at present, salaries at the level of the minimum wage paid about 900 thousand Russians.

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.