A draft ban on paying out-of-pocket wages below the minimum wage will be submitted to the Duma
A draft law will be submitted to the State Duma prohibiting the payment to workers of wages below the minimum wage (minimum wage). The document provides for amendments to the Labor Code of Russia.
The explanatory note to the project notes that the amount actually paid to the employee today may be less than the minimum wage due to the employer’s withholding of personal income tax (NDFL) from accrued earnings. In addition, salaries may be lower when an employee takes vacation or sick leave.
The minimum wage will be increased by 15 percent
The minimum wage in Russia will be increased by 15 percent from 2025, to 22 thousand rubles. Today this figure is 19,942 rubles.
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“Another task is to further increase the minimum wage. Starting next year it will be linked to median salarywhich the majority of those employed in the economy receive, will actually amount to half of this figure,” explained Russian Prime Minister Mikhail Mishustin.
During the St. Petersburg International Economic Forum (SPIEF), Putin called on the authorities to almost double the minimum wage in six years. Now this figure in the country is 19,942 rubles, and by 2030 it should increase to 35 thousand rubles per month. The head of state also added that the indexation of the minimum wage will be tied to the overall growth of wages in the economy.
Raising the minimum wage will increase wages for millions of Russians
An increase in the minimum wage may affect not only Russians with incomes below this indicator. This was pointed out by Viktor Lyashok, leading researcher at the Institute of Social Analysis and Forecasting at RANEPA. According to him, such changes could affect about three million workers in 2025.
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The expert explained that employers will strive to maintain differentiation of monetary compensation between different categories of employees, so the effect of the authorities’ measure will also be for those Russians whose salaries are now higher, Lyashok added.
Candidate of Economic Sciences Ekaterina Fedyukovich expressed the opposite opinion, saying that increasing the minimum wage in Russia will not lead to a general increase in citizens’ salaries. She explained that part of the increase will inevitably be eaten up by inflation even before Russians begin to receive increased income. In addition, the increase in the minimum wage in the country, in her opinion, will become an additional burden on the country’s budget.
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