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MIL OSI Translation. Region: Russian Federation –

Tatyana Golikova: In 2020, the procedure for calculating the subsistence minimum and the minimum wage was changed in the Russian Federation, according to which the growth rates of these indicators for 2022 are set depending on the income and wages of the population, which developed in 2020.

Since 2020 was characterized by serious pandemic restrictions, a decrease in economic activity and an increase in unemployment, the growth rates of indicators on which the calculation of the subsistence level and the minimum wage depends were minimal – 2.5% and 4.7%. In addition, in 2021, inflation rates will exceed those predicted when forming the budget for 2021.

In this regard, the President of the country made a decision to index such indicators that are sensitive for the population as the subsistence minimum and the minimum wage to levels exceeding the expected inflation rate, namely by 8.6%.

Almost all social benefits that are paid to children today, as well as federal and regional supplements to pensions and sick leave insurance benefits, depend on the indexation of these payments. In general, the increase in these payments will affect about 16 million of our citizens.

As for the minimum wage, here, too, as I said, an increase of 8.6% is expected, and this will also affect the wages of workers in the budgetary and non-budgetary sectors of the economy. This is about 3 million of our citizens.

All payments will be provided at the expense of the federal budget, budgets of state extra-budgetary funds and regional budgets, but the bulk of payments will fall on the federal budget.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

MIL OSI Russia News