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The Russian government plans to increase the minimum wage by 18.5% from 2024

CrimeaPRESS reports:

The bill is already ready.

The Ministry of Labor of Russia submitted for public discussion a bill that provides for an increase in the minimum wage (SMIC) from January 1, 2024 by 18.5%. Relevant Document posted on the official portal of draft regulatory legal acts.

On behalf of the President, consistent work is underway to increase the minimum wage. From January 1, 2024, the minimum wage will be increased by 18.5% and will amount to 19,242 rubles— Anton Kotyakov, Minister of Labor and Social Protection of the Russian Federation, commented on the bill.

The press service of the Ministry of Labor recalled that as of January 1, 2021, the minimum wage was set at the level of 12,792 rubles, as of January 1, 2022 — 13,890 rubles, as of January 1, 2023 — at the level of 16,242 rubles.

They noted that the increase in the minimum wage will ensure wage growth for 4.8 million Russians. For these purposes, 75.9 billion rubles will be allocated from the budgets of all levels.

An increase in the minimum wage will ensure wage growth for 4.8 million workers. In addition, the minimum wage serves as the minimum basis for calculating sick leave payments. To increase the minimum wage, 75.9 billion rubles will be allocated from the budgets of all levels, and 47.4 billion rubles from the extrabudgetary sectorthe message says.

The document also provides for an increase in the ratio of the minimum wage to the median salary at a level of at least 48% from January 1, 2025.

From 2025, we must return to the methodology of setting the minimum wage in relation to the median wage. In order to maintain the outstripping growth rates of the minimum wage, it is proposed to change the ratio at which the minimum wage was set from 2025 and determine it at a level of at least 48%Kotyakov commented.

The press service of the Ministry of Labor of the Russian Federation explained that since 2021, the minimum wage has been set at 42% of the median wage. Taking into account the need to quickly respond to price increases, the methodology was suspended until January 1, 2025.

From January 1, 2025, in order to maintain the outstripping growth rates of the minimum wage, the ratio of the minimum wage and the median wage will be at least 48% of the median wage calculated by Rosstat for the year preceding the adoption of the law on the minimum wage for the next yearthe ministry said.

The median salary is the salary more or less than half of working citizens receive. It is calculated by Rosstat. In 2019, it was 30,458 rubles, in 2020 — 32,422 rubles, in 2021 — 35,370 rubles, in 2022 — 40,368 rubles.

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The minimum wage is a monetary value below which the employer cannot set the monthly salary of an employee who has fully worked out the norm of working hours as part of his job duties. The minimum wage is guaranteed by Art. 7 of the Constitution of the Russian Federation.

Based on materials TASS.

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