As per a bill submitted by the Ministry of Labour and Social Protection at the draft regulations, Russia intends to raise its wage rate to 18.5 per cent.
Currently, the minimum wage in Russia stands at 16,242 rubles, equivalent to approximately 182 U.S. dollars per month. However, the ministry has formulated a bill that aims to increase this amount to 19,242 rubles. This proposed adjustment will have an impact on the wages of around 4.8 million individuals in Russia and the change will be implemented starting from January 1, 2024.
Along with the revised wage rate, the ministry additionally is suggesting a modification in the methodology used to calculate the minimum wage. Currently, the minimum wage is determined as 42 per cent of the median salary in Russia. However, the proposed adjustment aims to raise this ratio to no less than 48 per cent.
Moreover, the new methodology of calculating minimum wage will be implemented in the beginning in 2025.
The decision comes after Russia’s president, Vladimir Putin put forth a proposal to raise the minimum wage in Russia for the year 2024. The suggested increase amounted to 18.5 per cent, resulting in a new monthly minimum wage of 19,242 rubles ($258). This proposed adjustment not only represents an additional 10 per cent above the previously planned increment, but highlights the government’s intention to ensure better living standards for workers across the country with the raise.