"Socially fair approach": the Ministry of Labor proposed to revise the calculation of the minimum wage and the living wage

The Ministry of Labor proposed to increase the minimum wage (minimum wage) from January 1, 2021.

This was announced on Thursday, September 24, by the State Secretary - Deputy Minister of Labor and Social Protection Andrei Pudov.

“The ratio of the minimum wage to the median wage from 2021 will be 42% - 12,792 rubles.

Compared with the current minimum wage (12,130 rubles), it will grow by 5.5%.

Such an increase in the minimum wage will affect 3.9 million people, "TASS quoted Pudov as saying.

He also spoke about the proposal of the Ministry of Labor to increase the living wage in Russia from next year.

As the deputy head of the department noted, in 2020 the corresponding figure on average in the country will be 11,241 rubles, and in 2021 it will grow by the amount of inflation (3.7%) - up to 11,653 rubles.

“This translates into a ratio to median income (2019) of 44.2%.

It is this level of ratio that is proposed to be established for 2021, ”Andrei Pudov emphasized.

According to him, by the end of the week a bill will be introduced to the State Duma on changing the approach to establishing the value of the living wage and the minimum wage.

The initiative will require 133.6 billion rubles in 2021, the deputy head of the Ministry of Labor added.

Note that at the moment the minimum wage in Russia directly depends on the subsistence level.

So, according to the law, the minimum wage is set at an amount not lower than the subsistence minimum for the second quarter of the previous year.

If the cost of living for this period was lower than the same indicator last year, the minimum wage does not change.

“In fact, the initiative of the Ministry of Labor involves decoupling the minimum wage from the living wage.

Thus, now the minimum wage will rise with an increase in wages.

The approach to measuring the living wage is also changing, which corresponds to the new realities, "said Yaroslav Nilov, head of the State Duma committee on labor and social policy, in an interview with RT.

Today the value of the subsistence minimum is calculated quarterly in Russia as a whole and in each region separately, based on the consumer basket.

We are talking about the minimum set of food products, as well as non-food products and services necessary to preserve human health and ensure his life.

“Prescribing the formation of a basket in the law is already the last century.

Nevertheless, we insist that the minimum wage and the living wage be as close as possible to the amount of funds that can actually be lived on for a month.

According to our calculations, the indicator should be at least 20 thousand rubles, ”added Yaroslav Nilov.

In general, the idea of ​​the Ministry of Labor is to move from the concept of absolute poverty to relative poverty.

Vladimir Bessonov, head of the HSE laboratory for inflation and economic growth, spoke about this in a conversation with RT.

“The previous concept took into account only inflation, that is, the size of the minimum wage and the cost of living increased only when prices for goods rose.

The new approach takes into account both inflationary risks and the growth of the well-being of citizens, therefore, it is more socially just, ”Vladimir Bessonov emphasized.

According to him, the updated calculation method proposed by the Ministry of Labor is in line with international practice and is better tied to income distribution.

Thus, with an increase in the well-being of citizens, the poverty line will rise.

This will improve the living conditions of unprotected Russians, Bessonov is sure.

“In general, the change in approach will have a positive effect on the level of well-being of Russians in the long term.

The transition process will be smooth, which will lead to a decrease in income inequality in the country, ”the expert added.

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Moreover, a reduction in the personal income tax (PIT) for a number of Russians can further improve the welfare of citizens.

As noted by Yaroslav Nilov, at the moment the State Duma Committee on Labor and Social Policy is proposing to zero the personal income tax rate for people with salaries below 20 thousand rubles a month.

Experts interviewed by RT believe such an initiative is possible.

We will remind, earlier the government submitted to the State Duma a bill to increase the personal income tax rate from 13 to 15% from January 1, 2021 for citizens who earn more than 5 million rubles a year.

According to experts, the initiative means abandoning a flat taxation scale.

The corresponding system was introduced in Russia back in 2001 - since then, all citizens of the country have been paying personal income tax at a uniform rate of 13%.

“Increasing personal income tax for wealthy citizens may be the first step towards a progressive taxation scale.

The transition is a socially significant factor and can bring certain advantages for the country's economy.

Over time, the poorest Russians can reduce the personal income tax rate.

This will free up funds that citizens can spend.

The turnover of money in the economy will increase, consumption and demand will increase, which will have a positive effect on the development of the country, ”Artyom Deev, head of the analytical department at AMarkets, told RT.