Table of changes in the minimum wage in Russia by year 2010–2020

The minimum wage or the so-called minimum wage is the amount of money that every worker should be guaranteed to receive for monthly work performed in accordance with established standards at each enterprise or organization, regardless of the form of ownership.

Every state revises its minimum wage annually, or at least it should. This is done due to inflation, changing market conditions, and the structure of the domestic and foreign markets. The revision of the size (value) of the minimum wage in Russia, as in principle in any other states, is intended to prevent a deterioration in the lives of citizens.

Dynamics

Let's take a closer look at how this indicator has changed over the past twenty-plus years. It should be noted that in the 98th year of the last century there was a denomination of the currency, which led to the cutting off of some zeros in the monetary currency of our country.

Schedule. Minimum wage changes by year:

Table. Minimum wages by year in Russia:

* - this year the ruble was devalued, according to which the number of zeros on banknotes was reduced.

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History in the world and in the USSR

In the world, minimum wage mechanisms began to be established at the legislative level at the turn of the 19th-20th centuries to resolve conflicts with trade unions. The first such act was passed by the New Zealand Parliament in 1894. In most countries, the minimum wage is set not in monthly, but in hourly terms. For example, in the USA, since 2015, the minimum wage is $7.25 per hour, which, with an eight-hour working day and a five-day working week, corresponds to an average of $1.3 thousand per month (about 75 thousand rubles at the current exchange rate).

In the RSFSR, the concept of “obligatory minimum wage” for labor was first introduced by the Labor Code of 1922. By the Decree of the Central Committee of the CPSU, the Council of Ministers of the USSR and the All-Union Central Council of Trade Unions dated December 12, 1972, the minimum wage for workers and employees was set at 70 rubles. per month and did not change until 1991.

Who installs it and how?

According to Federal Law 82, which was adopted in 2000, this parameter throughout the Russian Federation can be established by the federal or regional government. In this case, the federal parameter is established only by the federal government, and the regional one - at a tripartite meeting of a special regional commission (Article 133.1).

In accordance with the content of the law, the exact date of change in the minimum wage does not have a fixed value and is set to any date during the calendar year. And the very intention to change it is announced by a special decree of the government of the Russian Federation.

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Contradictions in legislation

According to Federal Law No. 82 of July 19, 2000, the minimum wage is tied to the PM indicator and cannot be set lower. But at that time it was impossible to increase the “minimum wage” so sharply. This step would cause a business that had just begun to recover from default to go into the shadows.

Part 1 of Article 133 of the Labor Code of the Russian Federation did not work, and the minimum wage did not keep up with the growing minimum wage. Thus, in the period 2001–2006, the “minimum wage” amounted to 12–23% of the subsistence minimum in Russia. The government had to supplement the norm with a clause that the linking of the minimum wage to the minimum wage is carried out in accordance with Art. 421 of the Labor Code of the Russian Federation, which provides for the procedure and timing of increases through the adoption of a federal law. Such a law was adopted only on December 25, 2018, No. 481.

What's in the regions?

According to the legislation of the Russian Federation, regional legislators, depending on their economic development and intraregional social conditions, have the right to set their own minimum wage, which may differ from the federal one.

The regional minimum wage is legally fixed at a meeting at which the value is agreed upon between the three responsible participants in the region: the regional government, the association of trade unions and the association of employers. After its adoption, all regional employers will be required to pay no less than this established value, unless they send an official refusal to the regional administration within 30 days. Information on the currently valid regional minimum wage can be obtained from the state labor inspectorate of the region.

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Living wage and consumer basket

The subsistence level is the minimum income level, which is the necessary amount to ensure and maintain the average standard of living in the country. This indicator represents the approximate cost of the consumer basket.

The cost of living is calculated separately for each region. It is also determined for various categories of the population - pensioners, children, able-bodied citizens.

A consumer basket is an approximate calculated list of product items that characterizes the typical structure of annual consumption of one person. This value can also be calculated for the whole family.

It is advisable to use this set for settlement transactions for the minimum consumer budget (subsistence level). This is a kind of basis for comparing the calculated and real consumer levels.

If we consider the structural composition of the annual consumer basket, then it includes the following annual set of products for an able-bodied person:

• potatoes – 100.4 kg;
• bread products (bread and pasta in terms of cereals, flour, legumes) – 126.5 kg;
• vegetables and melons - 114.6 kg;
• fresh fruits - 60 kg;
• meat products and semi-finished products – 58.6 kg;
• fish products - 18.5 kg;
• milk and dairy products - 290 kg;
• vegetable oil, margarine and other fats - 11 kg;
• eggs – 210 pcs;
• other products (salt, tea, spices) - 4.9 kg.

In addition, it is worth taking into account non-food products, which include half the amount spent on food. In addition, it is worth taking into account utility bills and other services, which are conventionally taken as 50% of the cost of the food basket.

What is it used for?

The minimum wage is intended to be able to influence the lower salary threshold in Russia, as well as to establish various social benefits (pregnancy, temporary disability, and so on). The minimum threshold gives a signal to all Russian employers that they must pay their employees a salary not lower than the minimum wage.

This parameter is also used to calculate on its basis tax deductions, penalties and other levies that are established by law in the territory of the Russian Federation. Employers do not have the legal right to pay an employee a monthly salary below the minimum wage, but there are exceptions. Such an exception is the employee’s part-time or part-time work - in this case, the salary may be lower than the minimum wage.

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The purpose of the minimum wage in the Russian Federation

The minimum wage in the Russian Federation establishes the lower level of the monthly salary of an employee who has worked the full working hours and fulfilled the job duties assigned to him. See also in what cases salary and wages may be lower than the minimum wage.

The minimum wage, or more precisely, the average daily earnings calculated from the minimum wage, is used to calculate minimum benefits for temporary disability and maternity.

Previously, based on the minimum wage, the amount of fixed contributions of individual entrepreneurs paid to social funds (PFR and MHIF) was calculated. Since 2021, these contributions are paid to the Federal Tax Service, and since 2018 they have been detached from the minimum wage and the amount of contributions in a fixed amount has become regulated by the Tax Code (Article 430).

What are the fines?

According to the Code of Administrative Offenses (clause 6 of Article 5.27), employers, if the salary they pay to an employee is less than the minimum wage, they face the following penalties:

• from 10 thousand to 20 thousand rubles - for persons holding responsible positions;
• from 30 thousand to 50 thousand rubles - for legal entities;
• from 1 thousand to 5 thousand rubles - for individuals carrying out entrepreneurial activities without legal registration.

Control and support bodies

Payment of remuneration for work is controlled by four departments:

• Ministry of Labor and Social Protection of the Population.
• Financial departments: federal, municipal.
• State Labor Inspectorate: carries out scheduled and unscheduled on-site inspections.
• Prosecutor's office: federal, municipal.

Some authorities check the quality of fulfillment of obligations by traveling according to plan. But unscheduled inspections are also likely if employees file a complaint against the manager. An employee has the right to complain not only about reduced wages, but also about incorrect calculation of payments. After the application is sent to the appropriate department, local executive authorities will begin to investigate. The case may go to court, so employers who have entered into a tripartite agreement are more likely to comply with the law.

Funds for paying the minimum wage are provided from budget sources. According to Art. 2 Federal Law No. 82 of June 19, 2000 (as amended on December 25, 2018), the minimum wage is determined by firms that are financed from four types of sources:

• public money not included in the state budget, profit received from business or other activities;
• municipal treasury;
• federal treasury;
• personal budget.

Minimum wage after 1991

On April 19, 1991, the Supreme Council of the RSFSR adopted the law “On increasing social guarantees for workers,” which established the minimum wage at 180 rubles. per month starting October 1, 1991 and 195 rubles. - since January 1, 1992. However, already on November 15, 1991, the government of the RSFSR adopted a resolution establishing the minimum wage in the amount of 200 rubles. since December 1, 1991.

In total, from 1991 until the redenomination of 1998, various federal laws or direct decrees of Russian President Boris Yeltsin increased the minimum wage 17 times. From January 1, 1997, the minimum wage was 83 thousand 490 non-denominated rubles. As a result of redenomination from January 1, 1998, this amount amounted to 83.49 rubles. and was five times less than the living wage established at that time, i.e., the valuation of the consumer basket (450 rubles). At the same time, since the mid-1990s, the minimum wage began to be used in legislation to determine tax rates, to calculate fines, etc. The minimum wage is 83.49 rubles. remained until 2000.

Calculation of sick leave based on the minimum wage from July 1, 2021

The calculation of sick leave based on the minimum wage will change from July 1, 2021. For everyone who earned little, or did not have time to work for six months before the first sick leave or maternity leave, benefits will increase.

Minimum wage for calculating sick leave in 2021 FSS

From July 1, the minimum wage will increase from 6204 to 7500 rubles. Therefore, the calculation of sick leave will change based on the minimum wage.

From July 1, 2021, other benefits will be received by employees who:

• insurance period is less than six months (at the time of illness or maternity leave). In these cases, the benefit for the whole month will not exceed 1 minimum wage;
• earnings for the billing period are small. Sick leave and maternity leave cannot be less than the minimum amount (details in the next section).

New calculation of sick leave based on the minimum wage from July 1, 2021:

• will affect illnesses and maternity leave that began after this date;
• will not affect the average earnings for additional sick leave (for example, for complicated childbirth). Primary and additional sick leave are issued for one insured event.

Benefits must be recalculated if the employee went on maternity leave before July 1, 2021, and at that time her insurance period was less than six months. For days of maternity leave after July 1, calculate the benefit taking into account the new minimum wage.

Minimum wages by region

With changes and additions from 07/01/2016

Archive:

Archive: Table of minimum wages by regions of the Russian Federation for 2015 in PDF format