What Factors Determine The Size Of The Minimum Wage

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What Factors Determine The Size Of The Minimum Wage
What Factors Determine The Size Of The Minimum Wage

Video: What Factors Determine The Size Of The Minimum Wage

Video: What Factors Determine The Size Of The Minimum Wage
Video: Minimum Wage - Analysis 2024, November
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The minimum wage (minimum wage) is the minimum that the employer is obliged to pay to the employee on a monthly basis. If an employee receives less than the minimum wage, he can file a complaint with the federal labor and employment inspectorate.

What factors determine the size of the minimum wage
What factors determine the size of the minimum wage

The size of the minimum wage in Russia

The minimum wage is used not only to regulate working relations, but also to determine the amount of benefits for disability, pregnancy and childbirth, as well as for other purposes of compulsory social insurance. Also in Russia taxes, fees, fines are calculated on the basis of the minimum wage.

Distinguish between federal and regional levels of minimum wages. In 2014, the size of the all-Russian minimum wage is 5554 rubles, it grew by 6, 7% against the level of 2013.

Compared to 2007, the size of the minimum wage has more than doubled - from 2300 rubles.

Each region can set its own size of the minimum wage, based on its economic specifics. For example, in Moscow, the minimum wage is revised 2 times annually - on January 1 and July 1. In 2014, it is 12,600 rubles. (in 2013 - 11,700 rubles).

Today in Russia there is a situation in which the fixed minimum wage is lower than the official subsistence minimum. The latter is calculated on the basis of a grocery basket, non-food products and services that are necessary to ensure human life.

In general, the low level of minimum wages in Russia is a rather acute socio-economic problem, as it leads to a decrease in the level of wages, as well as to payments of illegal wages, which are not taken into account in taxation and from which pension contributions are not paid.

According to the Ministry of Economic Development, the subsistence minimum (poverty line) in Russia on average in 2013 was 7 911 rubles. Last year, the percentage of the minimum wage to the subsistence minimum was 65.8%.

An increase in the minimum wage could help reduce the share of workers with wages below the subsistence level (currently it reaches 14% of the total number of workers), as well as increase tax revenues.

At the same time, a higher minimum wage should lead to an increase in social benefits, in particular, the size of the pregnancy benefit. According to the Ministry of Health and Social Development, for these purposes it will be necessary to allocate an additional 55 billion rubles from the budget.

According to government estimates, the minimum wage should reach the subsistence level no later than 2018.

Criteria for determining the level of minimum wages in Russia

The minimum wage is subject to indexation every year based on the economic situation in the country. In particular, inflation and the cost of the consumer basket affect its value. In accordance with the ILO recommendation No. 135 "On the establishment of minimum wages with special regard for developing countries", the following criteria affect the minimum wage level:

- the needs of workers;

- the general level of salary;

- the cost of living and the standard of living of other groups;

- social security benefits.

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