Ordinary Russians lost out from the increase in minimum wages. Will the minimum wage be increased this year? Will the minimum wage be increased in
From January 1, 2018, Russia has a new minimum wage. Let's talk about how much the federal minimum wage has increased since January 1, 2018, what minimum wage has been established since the new year in the regions and how this affects the calculation of wages, vacation pay and benefits.
The minimum wage is the most important indicator on which employee payments depend; it directly affects the calculation of wages and employee benefits. We will tell you what minimum wage has been established since January 1, 2018 in Russia and by region.
See also:
Minimum wage from January 1, 2018
The size of the minimum wage is legally established by Article 1 of Federal Law dated June 19, 2000 No. 82-FZ. According to Federal Law No. 421-FZ dated December 28, 2017, from January 1, 2018, the minimum wage in Russia is equal to 9,489 rubles, that is, it increased by 21.7% and now amounts to 85% of the cost of living for the 2nd quarter of 2017 in the amount of 11,163 rubles .
Check to see if the company has employees who earn less than the new minimum wage. If yes, salaries need to be revised, since employees must receive no less than the federal level (Article 133 of the Labor Code). Otherwise, the labor inspectorate may fine the company 50 thousand rubles. (Part 6 of Article 5.27 of the Administrative Code).
Minimum wage in Russia in 2018 from January 1 by region: table
Regions have the right to apply the federal minimum wage or refuse it and establish their own, but not lower (Article 133.1 of the Labor Code of the Russian Federation).
From January 1, 2018, regional organizations have no right to pay employees less than 9,489 rubles. This means that payments must be reviewed in advance and changes must be made to employment contracts. To increase salaries, issue an order from the director and sign an additional agreement with employees on the new amount. It includes allowances, additional payments, and bonuses. Compensation for overtime and hazardous work, night shifts is awarded above the minimum wage.
In the northern regions, the minimum wage must exceed the minimum wage. In these cases, when employers pay employees the minimum wage, they are required to increase it by the regional coefficient for work in extreme conditions.
Minimum wages for 2018 by region: table
| District | Region | Minimum wage by region from January 1 2018 |
Law/regional agreement |
|---|---|---|---|
| Central federal district |
Belgorod region | Tripartite agreement between the regional association of trade union organizations, employers' associations and the Government of the Belgorod region for 2017-2019 | |
| Bryansk region | 9489 | Regional relationship between the government of the Bryansk region, the public organization "Federation of Trade Unions of the Bryansk Region" and associations of employers of the Bryansk region on the minimum wage in the Bryansk region for 2017 from December 21, 2016 | |
| Vladimir region | Regional agreement on the minimum wage in the Vladimir region dated June 30, 2016 | ||
| Voronezh region | 9489 | Agreement of employers' associations of the Voronezh region dated 02/01/2017 | |
| Ivanovo region | 9489 | Agreement on the regulation of social, labor and related economic relations between the government of the Ivanovo region, the regional association of trade union organizations, the regional association of employers for 2015-2017 dated December 26, 2014 No. 109-s | |
| Kaluga region | 9489 |
Kaluga Regional Tripartite Agreement between the Territorial Union of Trade Union Organizations "Kaluga Regional Council of Trade Unions", regional associations of employers and the government of the Kaluga Region for 2017-2019 |
|
| Kostroma region | 9489 |
Agreement on amendments to the Agreement on social partnership in the sphere of labor between the administration of the Kostroma region, the Federation of trade union organizations of the Kostroma region and employers' associations of the Kostroma region for 2014-2016 and the extension of its validity; Agreement on social partnership in the field of labor between the administration of the Kostroma region, the Federation of trade union organizations of the Kostroma region and associations of employers of the Kostroma region for 2014-2016 dated January 15, 2014 No. 3-d |
|
| Kursk region |
9489 - for organizations of the extra-budgetary sector at the level of the minimum wage - for public sector organizations |
Agreement between the administration of the Kursk region, the Union "Federation of Trade Union Organizations of the Kursk Region" and the Association-Association of Employers "Union of Industrialists and Entrepreneurs of the Kursk Region" on the minimum wage in the territory of the Kursk region for 2017 dated December 20, 2016 |
|
| Lipetsk region | 9489 |
Regional tripartite agreement for 2015-2017 between the administration of the Lipetsk region, the Federation of Trade Unions of the Lipetsk Region, associations of employers of the Lipetsk region dated December 23, 2014 (together with the Regional Agreement on the minimum wage in the Lipetsk region for 2015-2017) |
|
| Moscow region | 13 750 |
Agreement on the minimum wage in the Moscow region between the government of the Moscow region, the Moscow regional association of trade union organizations and employers' associations of the Moscow region dated November 30, 2016 No. 118 |
|
| Oryol Region | 10 000 |
Agreement of the Government of the Oryol Region, the Federation of Trade Unions of the Oryol Region, the Association of Employers "Association of Industrialists and Entrepreneurs of the Oryol Region" dated 02.02.2017 No. 4 |
|
| Ryazan Oblast | 9500 |
Regional agreement on the minimum wage in the Ryazan region for 2017 dated December 21, 2016 No. 144-1 |
|
| Smolensk region | 9489 | ||
| Tambov Region | 9489 |
Regional agreement on the minimum wage in the Tambov region dated July 19, 2016 No. 1 |
|
| Tver region | 9489 | Art. 1 of the Law of June 19, 2000 No. 82-FZ | |
| Tula region |
13,000 - for employees of the non-budgetary sector 11,000 - for employees of state and municipal institutions of the region |
Regional agreement on the minimum wage in the Tula region dated November 16, 2015 | |
| Yaroslavl region |
Regional agreement on the minimum wage in the Yaroslavl region dated December 24, 2015 |
||
| Moscow | 18 742 | Moscow tripartite agreement for 2016-2018 between the Moscow government, Moscow trade union associations and Moscow employers' associations dated December 15, 2015 (See Minimum wages in Moscow from May 1) | |
| Northwestern federal district |
Republic of Karelia | 9489 |
Order of the Government of the Republic of Karelia dated December 26, 2014 No. 811r-P (together with the Agreement on the minimum wage in the Republic of Karelia) |
| Komi | 10 000 |
Regional agreement on the minimum wage in the Komi Republic dated December 28, 2016 No. 149 |
|
| Arhangelsk region | 9489 |
Art. 1 of the Law of June 19, 2000 No. 82-FZ |
|
| Vologda Region | 9489 |
Agreement on the minimum wage in the Volgograd region dated 07/05/2016 No. S-272/15 |
|
| Pskov region | 11 450 |
What is the difference between a social society and one that is indifferent to its vulnerable members - older people with health problems, and even those who work? The fact is that it strives to create for all its members minimal conditions for a normal life.
Social institutions of the state include such minimum standards for workers and require all employers to comply with the minimum level of wages for hired workers. Often, the executive and legislative authorities formalize these requirements in the annual law on increasing the minimum wage, or as they say in everyday life, this is the law “on the minimum wage.”
However, the size of these minimum requirements depends on the economic situation. And, as a rule, it is set depending on the growth of economic indicators so that, on the one hand, it does not act as a deterrent. On the other hand, so as not to cause discontent among citizens. And thirdly, so as not to provoke inflationary trends when these requirements go beyond the growth of labor productivity.
Because if income growth is caused by labor efficiency, then this is a direct path to inflation, which in a short period will “eat up” the additional margin of these incomes.
The latest increase in the minimum wage in the Russian Federation obligated employers of all forms of ownership to pay the “minimum wage” in the amount of 7 thousand 800 rubles. As for whether there will be a salary increase in connection with the increase in the minimum wage next year, we will consider in more detail in the news information below.
Increasing the minimum wage: latest news
In his recent interview, V. Putin, when asked about the development priorities of the Russian Federation, among such areas, noted the development of the state’s economy based on innovative technologies, improving the quality of healthcare and education, as well as increasing the incomes of citizens.
As for the last priority, which the head of state pointed out, it would seem that nothing new was said here; moreover, his words do not diverge from deeds. Thus, at a recent meeting with the Government, he noted that he had already discussed the situation about whether it was possible to increase the minimum wage to the subsistence level with D. Medvedev.
V. Putin said that the Government needs to solve in the near future the fundamental problem when the minimum wage is not able to cover even basic or basic expenses of people. At the same time, he emphasized that he had heard a lot about discussions among members of the Government and at the same time understood and took into account different points of view regarding the resolution of this problem, as well as what additional costs this would lead to for both the state and business.
At the same time, the President supported the opinions of the head of the Ministry of Social Development Topilin that the economic situation has reached such a level that it is possible to increase the minimum wage in 2018 in Russia and, moreover, to the value of the so-called PM, and asked the members of the Cabinet of Ministers, on the one hand, not to delay solving this problem, but on the other hand, focus on budget possibilities.
Increase in the minimum wage from January 2018
In his speech at the meeting of the Cabinet of Ministers with the participation of the head of state, Topilin cited the following data that the increase in the minimum wage from January 1, 2018 will be carried out by almost 22 percent and in physical terms will be equal to 9 thousand 489 rubles. Which is already quite close to the PM, since its value in the second quarter was 11 thousand 163 rubles. Considering that inflation this year is a record low in the entire modern history of the Russian Federation, it is not expected to increase significantly by the end of the year.
As for next year’s minimum wage, according to forecasts, a significant increase in inflation is also not expected, so there is a real opportunity, according to the minister, to adopt a resolution to increase the minimum wage to the minimum wage level in the second or even the first quarter of 2018.
To which Putin said that he has a compromise proposal regarding whether there will be an increase in the minimum wage in 2018, firstly, as for the date, this can be done from January 1. Secondly, regarding the size - from the current 70 -72 percent, raise it to 85 percent. And thirdly, preferably no later than January 2019, and if the economic situation allows, then increase the minimum wage in 2018.
The State Duma promptly responded to V. Putin’s initiative on the prepared Government bill and voted for the law:
- in which the minimum wage has been established since January 1, 2018;
- its size is 85% of the PM;
- in physical terms – this is 9 thousand 400 rubles;
- from January 2019, the minimum wage will be 100% of the monthly minimum wage.
Increasing the minimum wage in Russia
Returning to the meeting in the Cabinet of Ministers with the participation of V. Putin, Minister of Economic Development Oreshkin acknowledged the miscalculations of both experts and specialists from his department regarding gloomy economic forecasts. He said that fortunately they were not completely justified. True, in the governments of Western countries, such a “revelation” would be tantamount to resignation, but this, as they say, is not about us.
Moreover, from his report it follows that already in the second quarter an increase in economic indicators of 6.3% was shown, and by the end of the year it is expected to be at the level of 2-3%. Moreover, he especially emphasized that economic growth is in no way connected with the positive dynamics of the cost of hydrocarbons.
In connection with this, V. Putin reproached him for the fact that this growth is not reflected in any way in the growth of household incomes; they are supposedly growing more slowly than the economy. There is no increase in consumer demand, and it is stuck at 0.7%. Thus, making it clear that the ministry is late with the initiative to increase the “minimum wage,” which is directly related to an increase in consumption, and therefore demand.
Increase in salary with increase in minimum wage
An increase in the minimum wage entails an increase in the level of other wages, because they are closely linked to each other by legal norms. And this caused heated discussions among experts and analysts.
Some believe that the main financial burden in this case falls on the budgets of the regions, since that is where the largest number of state employees is, and increasing the “minimum wage” does not have much effect on reducing poverty.
Others, on the contrary, express the opinion that the risks in relation to budgets are minimal, and what is more important is the effect that can have an impact on small and medium-sized enterprises, where they pay the “minimum wage” for their eyes, and all additional payments come “in envelopes”, which is what they suffer from local budgets.
Increasing the minimum wage – Moscow
The minimum wage in Moscow, unlike other Russian regions, is revised every three months. After the October revision of the “minimum wage”, residents of the metropolis will face another increase in the Moscow minimum wage in 2018. Immediately with the onset of the New Year holidays, this amount will be 18 thousand 742 rubles. Which is not a pitiful percentage, but 1 thousand 742 rubles more than the “minimum wage” was, starting in October.
You might be interested.
On December 12, the State Duma adopted a law according to which in Russia in 2019 the size of the federal minimum wage will be increased. It will rise to the subsistence level and reach 11,280 rubles. What changes will occur at the regional level and how the level of wages and other dependent payments will change.
New figures for calculation
Based on Article 1 of Federal Law No. 82 in 2019, starting from January 1, changes will be made to the minimum wage. It is directly related to the value of the subsistence minimum (LM) established for the working population for the 2nd quarter of the previous year.
New figures for calculation
According to the order of the Ministry of Labor and Social Protection dated August 24, 2018, the PM indicators will be:
- working-age population - 11,280 rubles;
- pensioners - 8,583 rubles;
- children - 10,390 rub.
Accordingly, the minimum wage in 2019 in Russia is 11,280 rubles. For comparison, in May of this year this figure was equal to 11,163 rubles. Those. the increase will not exceed 1% or 117 rubles.
The minimum wage is the minimum wage that any organization, regardless of its form of ownership, or individual entrepreneurs must pay to employees for a fully worked month. It is important to distinguish the amount that the employee will receive. Its final size is determined by all deductions in accordance with current legislation, including such as alimony.
Total wages cannot be lower than the established minimum wage. According to Article 129 of the current Labor Code of the Russian Federation, it includes:
- rewards for work performed;
- various types of compensation payments;
- incentive payments.
If this rule is violated, a fine will be imposed on employers. Its size is 30,000 - 50,000 rubles. The amount may increase if the violation is detected again.
Today it is unknown when the next minimum wage increase will be in 2019. The economic situation in Russia is unstable, so even experienced experts do not give clear forecasts.
Minimum wage values are fixed at two levels - federal and regional. The amount of 11,280 rubles refers to the first, i.e. federal It is this figure that can be found in the latest news talking about how much the minimum wage will be in Russia in 2019.
As for the regional level. In each part of the Russian Federation, the minimum wage is established by regional minimum wage agreements. As a rule, it is higher than the federal one. But it cannot be lower; this is fixed in Article 133.1 of the Labor Code.
An important condition is that wages are linked to the regional minimum wage according to a special document. This is a regional agreement. Managers either join it on their own, or it happens “automatically”. The latter can happen if, after 30 calendar days from the date of publication of the agreement, a reasoned refusal has not been sent to the labor authority.
The minimum wage is set by regional minimum wage agreements
Accounting departments should know that for employees of enterprises in the Far North, a special rule applies when comparing salaries with the minimum wage. It states that payments should not include the regional coefficient and the bonus for work in regions belonging to the Far North. According to the latest news, the planned increase in the minimum wage in 2019 does not imply changes in this rule. There are many enterprises in Russia located in this area.
The table shows the value of the minimum wage, which will be established in 2019 in Russia. From January 1, the value for regions will be determined by specific documents.
Minimum wage values are fixed at two levels - federal and regional
| Region | Minimum wage in the region |
| Altai region | RUB 11,280 x by regional coefficient |
| Amur region | |
| Arhangelsk region | RUB 11,280 + regional coefficient |
| Astrakhan region | RUB 11,280 + regional coefficient |
| Belgorod region | RUB 11,280 |
| Bryansk region | RUB 11,280 for employees of public sector organizations 11,280 for employees of non-budgetary sector organizations |
| Vladimir region | RUB 11,280 |
| Volgograd region | In the amount of 1.2 times the subsistence minimum of the working-age population of the Volgograd region, but not less than 11,280 rubles. |
| Vologda Region | RUB 11,280 |
| Voronezh region | The subsistence minimum for the working population, but not less than 11,280 rubles. |
| Jewish Autonomous Region | 12,000 rub. for all employees regardless of length of service This amount includes all surcharges and coefficients. That is, the salary, taking into account all benefits, cannot be less than 12,000 rubles. |
| Transbaikal region | For employees of organizations financed from the budget of the Trans-Baikal Territory, local budgets of the Trans-Baikal Territory and the compulsory health insurance fund - 11,280 rubles. For employees of organizations financed from the budget of the Trans-Baikal Territory, local budgets of the Trans-Baikal Territory and the compulsory health insurance fund, working in the regions of the Far North and equivalent areas: – in the Kalarsky district in the amount of 11,280 rubles; – in the Tungiro-Olekminsky and Tungochensky districts in the amount of 11,280 rubles For employees of organizations in the non-budgetary sector of the economy (except for agricultural organizations) - 11,280 rubles. For employees of organizations in the non-budgetary sector of the economy (except for agricultural organizations) working in the Far North and equivalent areas: – in the Kalarsky district 11,190 rubles; – in the Tungiro-Olekminsky and Tungochensky districts in the amount of 11,280 rubles. – for employees of agricultural organizations - 11,280 rubles. |
| Ivanovo region | The cost of living of the working-age population, determined for the 3rd quarter of 2017 But not less than 11,280 rubles. |
| Irkutsk region | RUB 11,280 + regional coefficient |
| Kabardino-Balkarian Republic | Living wage for the 4th quarter of 2018 for commercial firms RUB 11,280 - for state employees |
| Kaliningrad region | RUB 11,280 for commercial companies RUB 11,280 - for state employees |
| Kaluga region | RUB 11,280 |
| Kamchatka Krai | 29,024 rubles with a coefficient of 1.8 and 26,791 rubles with a coefficient of 1.6 |
| Karachay-Cherkess Republic | RUB 11,280 |
| Kemerovo region | 1.5 times the subsistence minimum for the working population of the Kemerovo region, but not less than 11,280 rubles. Regional coefficient 1.3 The total minimum wage is 18,313 rubles. |
| Kirov region | RUB 11,280 |
|
Kostroma region |
RUB 11,280 + regional coefficient 1.15 The total minimum wage is 12,837.45 rubles. |
| Krasnodar region | In the amount of the subsistence minimum for the working population per month in the Krasnodar Territory, but not less than 11,280 rubles. Thus, by order of the Ministry of Labor and Social Development of the Krasnodar Territory dated October 30, 2017 No. 1206 “On the value of the living wage in the Krasnodar Territory for the third quarter of 2017,” the living wage was established: for the working population - 11,280 rubles. |
| Krasnoyarsk region | Minimum wage increased by the regional coefficient |
| Kurgan region | RUB 11,280 |
| Kursk region | Commercial - RUB 11,280. State employees - 11,280 rubles. |
| Leningrad region | 11,400 rub. |
| Lipetsk region | 1.2 times the cost of living of the working-age population for the 4th quarter of 2017 But not lower than 11,280 rubles. |
| Magadan Region | Establish the minimum wage in the Magadan region for an employee who has worked the monthly working hours established by the legislation of the Russian Federation and fulfilled his labor duties (labor standards) - 19,500 rubles, with the exception of the North-Evensky urban district of the Magadan region. In the North-Evensky urban district of the Magadan region, an employee who has worked the monthly working hours established by the legislation of the Russian Federation and has fulfilled his labor duties (labor standards) is set a minimum wage of 21,060 rubles. These amounts must be adjusted by the regional coefficient: 1.7 It turns out that the minimum wage in the Magadan region is: – 21,060 x 1.7 = 35,802 rub. in the North Evensky urban district; – 19,500 x 1.7 = 33,150 rub. in other areas. |
| Moscow | The size of the minimum wage in the city of Moscow is revised quarterly and is set in the amount of the subsistence minimum for the working population of the city of Moscow, approved by a resolution of the Moscow Government. In the event of a decrease in the cost of living in the city of Moscow, the minimum wage remains at the same level. This happened in the 3rd quarter. The cost of living in the 3rd quarter in Moscow turned out to be less than in the 2nd quarter. Therefore, the minimum wage in Moscow from May 1, 2018 is the cost of living for the 2nd quarter, that is, 18,742 rubles. Thus, the minimum wage in Moscow is 18,742 rubles. |
| Moscow region | 14 200 |
| Murmansk region | RUB 25,675 (this amount takes into account northern allowances) |
| Nenets Autonomous Okrug | RUB 18,567 for commercial employers RUB 11,280 for state employees |
| Nizhny Novgorod Region |
|
| Novgorod region | Living wage in the region, but not lower than 11,280 rubles. |
| Novosibirsk region | The region has a regional coefficient of 1.2. Therefore, the minimum wage is adjusted for it. RUB 11,280 x 1.2 = 13,395.6 rub. |
| Omsk region | |
| Orenburg region | RUB 12,838 (this amount includes the regional coefficient of 1.15) |
| Oryol Region | RUB 11,280 |
| Penza region | RUB 11,280 |
| Perm region | RUB 11,280 + allowances |
| Primorsky Krai | RUB 11,280 + regional coefficient For a regional coefficient of 1.4, the minimum wage is 15,628 rubles. For a regional coefficient of 1.2, the minimum wage is 13,396 rubles. |
| Pskov region | RUB 11,450 for commercial employers RUB 11,280 for state employees |
| Republic of Adygea | RUB 11,280 |
| Altai Republic | RUB 11,280 for employees of non-budgetary organizations, except for those working in the field of agriculture in the field of education RUB 11,280 for employees of organizations in the field of agriculture and education, as well as public sector employees |
| Republic of Bashkortostan | 11,280 + regional surcharges (0.15%) Taking into account allowances, the minimum wage in Bashkiria is 12,837.45 rubles. |
| The Republic of Buryatia | RUB 11,280 |
| The Republic of Dagestan | RUB 11,280 |
| The Republic of Ingushetia | RUB 11,280 |
| Republic of Kalmykia | RUB 11,280 |
| Republic of Karelia | RUB 11,280 + regional coefficient 1.15, 1.2, 1.3 or 1.4 |
| Komi Republic | RUB 11,280 in the southern natural and climatic zone of the Komi Republic RUB 11,280 in the northern natural and climatic zone of the Komi Republic RUB 11,280 for state employees |
| Republic of Crimea | RUB 11,280 |
| Mari El Republic | RUB 11,280 for commercial employers RUB 11,280 for employees of organizations financed from federal, regional, and local budgets |
| The Republic of Mordovia | RUB 11,280 |
| The Republic of Sakha (Yakutia) | RUB 11,280 + regional coefficient + allowances |
| Republic of North Ossetia–Alania | RUB 11,280 |
| Republic of Tatarstan | RUB 11,280 For the following situations, the minimum wage is adjusted by a factor of 1.15 and set at RUB 12,837.45: Districts: Almetyevsky, Bugulminsky, Leninogorsky, Aznakaevsky, Bavlinsky, Elabuga, Menzelinsky, Nurlat-Oktyabrsky, Muslyumovsky, Sarmanovsky, Aktanyshsky, Aksubaevsky - employees of construction and repair organizations carrying out construction in these areas (as an exception) Throughout the entire territory, except for the city of Kazan - employees of enterprises and organizations of the oil and gas industry (with the exception of enterprises under the jurisdiction of local Soviets of Working People's Deputies) |
| Tyva Republic | RUB 11,280 |
| The Republic of Khakassia | RUB 11,280 + regional coefficient 1.3. The total minimum wage is 14,511.9 rubles. |
| Rostov region | In the amount of 1.2 times the subsistence minimum, established for the working population of the Rostov region for IV quarter of 2017, but not lower than RUB 11,280. For micro-enterprises and small enterprises during the first three years of operation - at a level not lower than the subsistence minimum of the working-age population of the Rostov region for the fourth quarter of the previous year but not lower than 11,280 rubles. |
| Ryazan Oblast |
|
| Samara Region | RUB 11,280 |
| Saint Petersburg | Establish a minimum wage in St. Petersburg of 17,000 rubles. In this case, the tariff rate (salary) of a 1st category worker should not be less than 13,500 rubles. For state employees - 11,280 rubles. |
| Saratov region | RUB 11,280 |
|
Sakhalin region |
Taking into account bonuses and coefficients, workers in the southern and central regions will have to receive at least 23,442.3 rubles, Nogliki and Okha regions - at least 29,023.8 rubles, and in the Kuril Islands - at least 31,256.4 rubles. |
| Sverdlovsk region | RUB 11,280 + regional coefficient |
| Sevastopol | RUB 11,280 |
| Smolensk region | RUB 11,280 |
| Stavropol region | RUB 11,280 The agreement states that the salary is set at the subsistence level for the 1st quarter of 2017. However, this minimum is lower than the minimum wage. Therefore, the minimum wage in the region is 11,280 rubles. |
| Tambov Region | RUB 11,280 |
| Tver region | RUB 11,280 |
| Tomsk region | The minimum wage in the Tomsk region for employees of organizations financed from the regional and local budgets, territorial state extra-budgetary funds of the Tomsk region, and employees of other employers is set in the following amount:
|
| Tula region | 13,000 rub. for employees of the non-budgetary sector of the economy 11,280 rubles for employees of state and municipal institutions of the Tula region RUB 11,280 for state employees |
| Tyumen region |
|
| Udmurt republic | RUB 12,837.45 |
| Ulyanovsk region |
|
| Khabarovsk region | RUB 11,280 This value is adjusted by regional coefficients for regions from 1.2 to 1.7 and northern allowances. |
| Khanty-Mansiysk Autonomous Okrug - Ugra | RUB 11,280 + regional coefficient and percentage increase in salary for work experience in the Far North. |
| Chelyabinsk region | RUB 12,838 taking into account the Ural coefficient of 1.15 |
| Chechen Republic | RUB 11,280 |
| Chuvash Republic | RUB 11,280 |
| Chukotka Autonomous Okrug | RUB 11,280 |
| Yamalo-Nenets Autonomous Okrug |
|
| Yaroslavl region |
|
What minimum wage was approved from January 1, 2018 in Russia in accordance with Federal Law No. 421-FZ dated December 28, 2017? How will the new minimum wage affect benefits and wages? Will benefit levels change from January 1, 2018? Let's figure it out.
Minimum wage from January 1, 2018: new size
From January 1, 2018, the minimum wage was increased to 9,489 rubles. The calculation of many payments depends on the new minimum wage, including temporary disability benefits, maternity benefits, child care benefits for up to 1.5 years, as well as numerous social benefits, the amount of which is tied to the minimum wage.
You can track the latest increase in the minimum wage from our table, which takes into account changes since 2018.
As you can see, from January 1, 2018, there was a fairly significant increase in the minimum wage. For 1689 rub. (9489 rub. – 7800 rub.). Why did this happen?
A course has been taken to move closer to the living wage
The minimum wage should not be less than the subsistence level of the working population (Article 133 of the Labor Code of the Russian Federation). However, the cost of living for the second quarter of 2017 is 11,163 rubles, and the federal minimum wage is only 7,800 rubles. A special law should determine the procedure and period during which the authorities are obliged to increase the minimum wage (Article 421 of the Labor Code of the Russian Federation). And they finally decided to pass this law.
The matter has reached the final stage of raising the minimum wage to the minimum subsistence level established in Russia. For these purposes, Federal Law No. 421-FZ dated December 28, 2017 was signed and came into force on January 1, 2018:
- from January 1, 2018 – up to 85% of the subsistence level of the working-age population;
- from January 1, 2019 – up to 100%.
According to the bill, starting from 2019, each year the minimum wage will be set in the amount of the federal subsistence level for the 2nd quarter of the previous year. At the same time, the minimum wage for the next year cannot be less than the established minimum wage.
The subsistence minimum is the cost of a conditional consumer basket, which includes a minimum set of food products, non-food products and services that are necessary to ensure human life. The cost of living also includes mandatory payments and fees.
The cost of living is approved at the end of each quarter, using numerous statistical data, including the inflation rate, to determine it. The federal subsistence minimum is set by the Government of Russia, and regional minimums are set by regional governments.
Minimum wage from January 1, 2018 and wages
The minimum wage is the minimum wage that an organization or individual entrepreneur (employer) must accrue to employees for the month they have fully worked (Article 133 of the Labor Code of the Russian Federation). However, keep in mind that an employee may receive less than the minimum wage in person - minus personal income tax and other deductions, for example, alimony. Accordingly, from January 1, 2018, it is impossible to pay less than 9,489 rubles.
It is worth noting that the salary of employees from January 1, 2018 may be less than 9,489 rubles. After all, the total salary, which includes (Article 129 of the Labor Code of the Russian Federation) cannot be less than the minimum wage:
- remuneration for work;
- compensation payments, including additional payments and allowances;
- incentive payments (bonuses).
If, from January 1, 2018, the employee’s salary is less than the minimum wage (9,489 rubles), then the employer may be held accountable in the form of fines. The fine for an organization can range from 30,000 to 50,000 rubles, and if detected again - from 50,000 to 70,000 rubles. For a director or chief accountant, the liability may be as follows: for a primary violation, they may issue a warning or a fine of 1,000 to 5,000 rubles, for a repeated violation, a fine of 10,000 to 20,000 rubles. Moreover, they can be disqualified for a period of one to three years (Article 5.27 of the Code of Administrative Offenses of the Russian Federation).
Minimum wage in the regions from January 1, 2018
Since January 1, 2018, regional authorities can establish in a special agreement their own minimum wage, which exceeds the federal minimum wage (Article 133.1 of the Labor Code of the Russian Federation). However, the regional minimum wage can be abandoned. For these purposes, you will need to issue a reasoned refusal and send it to the local branch of the Committee on Labor and Employment.
In accordance with Part 1 of Art. 133.1 of the Labor Code of the Russian Federation in a constituent entity of the Russian Federation, a regional agreement may establish a different minimum wage. It should not be lower than the minimum wage approved by federal law (Part 4 of Article 133.1 of the Labor Code of the Russian Federation). Employers are considered to have acceded to the regional agreement on the minimum wage if, within 30 calendar days from the date of its publication, they have not sent a written reasoned refusal to join it to the Ministry of Labor of Russia. In this case, the organization is obliged to comply with all provisions of the regional agreement (Part 8 of Article 133.1 of the Labor Code of the Russian Federation). This means that the minimum wage established by the regional agreement is mandatory for the employer.
Note that Moscow, as the capital, is traditionally famous for its more expensive life than other subjects of the Russian Federation. Therefore, the minimum wage in the capital is higher than the federal one. Now in Moscow for the 2nd quarter of 2017, the minimum wage is 18,742 rubles. Currently, there is no information on the minimum wage for 2018 in Moscow. However, most likely, in the next month the Moscow Government will set a living wage for the 3rd quarter of 2017. This indicator will be used as the Moscow minimum wage from January 1, 2018.
Last modified: January 2019
Pre-election time, as a rule, brings good news from the authorities to Russians. The current presidential campaign is no exception. In particular, from January 1, 2019, the minimum wage in Russia will be identical to the subsistence minimum determined for able-bodied citizens for the second quarter of last year. It is interesting that legislators not only equated the minimum wage for workers to the monthly wage, but also did it ahead of schedule.
The increase in the minimum wage was initiated by the Russian President. Back in December 2017, he signed Law No. 421 of December 28, 2017, which set the minimum wage from the beginning of 2018 at 85% of the monthly wage (9,489 rubles). And only from the next year, 2019, its value increased to 100 percent of the subsistence level of working-age Russians.
However, a month later, in January 2018, at a meeting with workers of the carriage building plant in Tver, V.V. Putin was asked the question: how soon is the state going to equalize the cost of living and the minimum wage? In response, he promised to do this in the near future. The President said that positive economic dynamics make it possible to carry out the equalization not from the beginning of 2019, but from May 2018.
Previously. And in March, the head of state signed Law No. 41-FZ of 03/07/2018 - on increasing the federal minimum wage from May 1, 2018. From now on, it will be 11,163 rubles, that is, 100% of the monthly wage of able-bodied citizens for the second quarter of 2017. The President personally submitted the bill to the State Duma back in February, and deputies supported it. When considering this document, the leader of the LDPR faction V. Zhirinovsky proposed to increase the minimum wage even more - to 20 thousand rubles, but his amendment was rejected.
Minimum wage and living wage: differences
Basically, the correction of the minimum wage is of interest to working citizens, since its value affects not only the size of their salary, which must be raised to the minimum value, but also the insurance benefits received. If employees are paid wages below the minimum wage (full-time), the employer faces an administrative fine. If this is an organization, then it can be fined 30,000-50,000 rubles, if an individual entrepreneur – up to 5 thousand rubles.
For unemployed citizens or those who apply for various payments from the state, it is much more important to monitor the value of the monthly minimum. In particular, it determines whether the applicant is recognized as low-income. Namely, this status allows you to receive a number of government benefits and other assistance.
The subsistence minimum is the monetary equivalent of a consumer basket defined for various groups of the population (children, pensioners and able-bodied citizens). From these three values, an average value is derived, constituting the overall regional PM. This is the minimum amount that allows you to satisfy (according to the authorities) the necessary needs of citizens:
- in food;
- in various non-food products (medicines, clothing, household appliances, etc.);
- in services and obligatory payments (for rent, for travel on transport, etc.).
When determining the cost of living, officials rely on a variety of statistical indicators and the level of inflation processes.
Regional minimum wages
Each subject of the Russian Federation has the right to independently establish the regional minimum wage. However, the Labor Code (Article 133.1) warns local authorities: it should not be lower than the minimum wage determined at the federal level. Let us remind you that from January 1, 2019 it is 11,280 rubles, and it is impossible to set it in a smaller volume. The majority of regions fixed the local minimum wage at the same level. But in some regions it is defined in higher sizes, as can be seen from the table.
| Subjects of Russia | The value of the regional minimum wage - from January 2019, in rubles |
| * Altai region * Astrakhan region * Vladimir region * Vologda Region * Kaluga region * Kostroma region * Omsk region * Primorsky Krai * Republic of Adygea * Republic of Kalmykia * Chukotka Autonomous Okrug |
— 11 280 |
| * Leningrad region | — 11 400 |
| * Moscow | — 18 781 |
| * Oryol Region | — 11 280 |
| * Tula region | — 13,000 — for employees of extra-budgetary spheres; - 11,280 - for state employees. |
The full table can be found at the end of the article.
Accordingly, from January 1, values that do not reach 11,280 rubles must be increased.
Some employers mistakenly believe that they do not have to comply with the regional minimum wage. However, this is not at all true. In Article 133.1 of the Labor Code, when establishing a local minimum wage value that differs from the federal value, the following procedure applies:
- A 3-party agreement is drawn up. It is signed by: the regional government, representatives of the trade union organization and the association of employers.
- The text of the document is officially published in the media.
- Within 30 days, all employers operating in the region and who do not want to apply the local minimum wage must notify in writing the authorized body of the constituent entity of the Russian Federation (usually referred to as the “Committee on Labor and Employment” or some other similar name). The refusal must be motivated by some valid reasons.
If the notification was not received within the specified period, then the silent employer is obliged to apply the regional minimum wage when setting salaries for the organization’s employees.
What will change after increasing the minimum wage?
Law No. 82-FZ on the minimum wage clearly establishes for what purposes the minimum wage is introduced (Article 3). The dimensions depend on this value:
- the average employee’s earnings do not reach the minimum wage;
- during the billing period he did not receive a salary at all;
- the employee’s total insurance period is less than six months;
- a sick employee violated sick leave without a good reason.
In this case, the above indicators from May of this year, following the minimum wage, will be increased by 15%.
Child benefits received by working mothers will change as follows:
-
B&R manual:
- from January 2019 – RUB 51,918.90. (minimal);
- Maksim. at 140 days - RUB 301,095.89.
-
allowance for 1 child up to 1.5 years:
- from January 2019 – RUB 4,512.00;
Also, for employees sent on a business trip or going on vacation after the January increase in the minimum wage, the average monthly salary for accounting calculations must be no lower than the adjusted value (11,280 rubles). The size of the minimum wage does not affect other calculations.
What will an increase in the minimum wage not affect?
An increase in the minimum wage no longer affects the amount of insurance premiums paid by individual entrepreneurs. Now they pay a fixed amount that does not depend on this indicator.
Also, an increase in the minimum wage will not affect employees’ salaries in any way if it exceeds the minimum level. Disabled people and most old-age pensioners will not notice an increase in benefits, since for them they are calculated based on the cost of living.
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