Putin proposed to equate the minimum wage to a living wage in 2019
The President also took the initiative from 1 January 2018 to raise the minimum wage to 85%
MOSCOW, September 11. /TASS/. Russian President Vladimir Putin has proposed from 1 January 2018 to raise the minimum wage to 85% of the subsistence minimum, and from 1 January 2019 to equalize both figures.
“I suggest that since at least January 1, 2018 to raise the minimum wage from the current 71-72% of the subsistence minimum of the working age population to 85%, he said at a meeting with members of the government. And not later, and if the government deem it possible before, but no later than 1 January 2019 to equate the minimum wage and the subsistence minimum”. “I ask the government to make appropriate proposals to the State Duma together with the draft Federal budget for the next three years”, — said the head of state.
He noted the need to solve the fundamental problem — to bring the minimum wage to a level not below the subsistence level.
“We need to equalize it with the cost of living and overcome the situation when minimal possible salary does not cover even the basic costs of citizens, — said Putin. — I understand the internal debate that goes to the government, you know colleagues who defend different points of view, because such decisions lead to serious additional costs of the state, strictly speaking, and business.” The President added that increasing the minimum wage is very important and necessary “to do so and to do as quickly as possible in accordance, of course, with the possibilities of the budget.”
Labor Minister Maxim Topilin reminded the meeting that in 2015, the ratio of the subsistence minimum and the minimum wage was just over 50%.
The last two years, three times the minimum wage increased and increased by 31%.
“The most serious increase was last year since July 1, when we simultaneously increased the minimum wage by 21%, he said. — Due to these system solutions are now the minimum wage is 7800 rubles from July 1 this year, and we came to a ratio of just over 70%, to be exact, 71 percent”. According to the Minister, compared to 2015 year 2017, the number of citizens who receive wages below the subsistence level decreased from 5.5 to 4 million people. “That is, the dynamics are quite serious, although we understand that in the long term, of course, this should not be, all should receive a salary not below the subsistence minimum”, — he explained.