Moscow minimum wage 2021
The minimum wage is the minimum wage that an organization or individual entrepreneur (employer) must accrue to employees for the month they have fully worked (Article 133 of the Labor Code of the Russian Federation).
An increase in the cost of living in the capital is followed by an increase in the minimum wage. The new minimum wage comes into force on the 1st day of the month following the month in which the next minimum wage resolution comes into force.
The minimum wage in Moscow from January 1, 2021 will be 20,195 rubles (Resolution No. 1177-PP dated September 10, 2019). This value is already in effect. Thus, the minimum wage in Moscow from January 1, 2021 is significantly higher than the federal level (20,195 rubles versus 12,130 rubles).
It is important to note that if the cost of living for the 3rd quarter of 2019 is lower than the current minimum wage, then this value (RUB 20,195) will continue to apply from January 1, 2021. Accordingly, the minimum wage in Moscow will remain 20,195 rubles. After all, a reduction in the minimum wage due to a decrease in the cost of living is not allowed (clause 3.1.1 of the agreement dated December 15, 2015).
Legal basis
The Labor Code of the Russian Federation establishes an obligation for employing organizations and individual entrepreneurs to pay their employees a salary not lower than the “minimum wage”, approved at the federal level by Federal Law No. 82-FZ of June 19, 2000, as amended by Federal Law No. 41-FZ of March 7, 2018.
According to these legislative acts, the federal minimum wage is set at 11,163 rubles.
Comment. In accordance with these documents, the all-Russian minimum wage from January 1, 2021 will be equal to the cost of living in the Russian Federation as a whole for the second quarter of 2021 for the working population. In the future, this indicator will have to change annually on January 1.
The tripartite agreement concluded between the city authorities, employers and trade unions sets the minimum wage in Moscow at 18,742 rubles from January 1, 2020.
This document is signed on the basis of the Labor Code and the Law of the City of Moscow No. 4 of November 11, 2009. The metropolitan value is not directly linked to the PM of the working population.
Factors in calculation
Moscow is traditionally the leader among the constituent entities of the Russian Federation in terms of the minimum wage level. But this is easily explained because when calculating it, the relevant commission is guided by the following factors:
| Living wage | It is higher in the capital, because its residents usually require additional costs for transport, and also prices for a number of goods in the Moscow Region are slightly higher than in the regions |
| Economic situation | Most of Russia's money is in the capital region and the economic situation there is somewhat better than in the country as a whole |
| Region conditions | There are no severe climatic conditions in Moscow, but there are other problems - for example, those associated with loss of time on the road |
| Legal restrictions | The Moscow authorities, as well as the leadership of other constituent entities of the Russian Federation, can only increase the minimum wage level compared to the federal level |
| Position of employers and trade unions | The task of the capital's leadership is to find the most balanced size option that suits both organizations representing the interests of employers and trade unions of workers |
| Budget revenues of a constituent entity of the federation | The Moscow budget traditionally accounts for a fairly significant portion of income, which means city authorities have more opportunities to maintain relatively high salaries for public sector employees |
In fact, the size of the minimum wage in Moscow depends most of all on agreements between trade unions and employers.
Currently, virtually no one in the commission responsible for agreeing on the size of the “minimum wage” represents the interests of the organization and entrepreneurs from the SME segment.
This category of employers is forced to simply put up with the current wage levels in the capital.
The size of the national minimum wage depends entirely on the level of the subsistence minimum, and therefore on the composition of the consumer basket and the prices of the goods included in it.
In the PC, for calculating PM, 3 components are allocated and their cost is calculated separately according to different rules.
We will analyze this information in detail in the table below:
| PC component | What is included in the component | Procedure for determining the cost of a component |
| Grocery set | A minimum of food products that allow a person to receive the necessary energy, vitamins, and microelements. No delicacies are included in the PC for PM | Food prices are monitored by Rosstat, which provides statistics on them quarterly. Based on them, as well as the list and number of products included in the PC, the cost of this component is calculated |
| Non-food products | A very small amount of basic clothing, essential medicines, basic necessities, hygiene products | The cost is set as a percentage of the cost of the food set when calculating the PC for the all-Russian PM. Prices for non-food goods/services are not monitored separately for these purposes. |
| Services | Utilities and transport services. In the latter case, we mean traveling by public transport. | -«- |
Increase from July 1
The minimum wage in Moscow is set once a year. The rest of the time it does not change. Thus, from July 1, 2021, the “minimum wage” in Moscow will still be 18,742.
Although the capital authorities, like the leadership of other regions, are obliged to review the living wage quarterly after receiving the relevant data from Rosstat.
The minimum wage value for the second quarter (will be applied from April 1) is expected until the end of July 2021, for the third quarter (will be applied from July 1) - in October.
Actions of the employer when the salary of employees is below the indicator
If an employer is faced with a situation where, when calculating the salary of his employees, the salary turns out to be below the subsistence level, then according to the law, he must make an additional payment up to the minimum wage level.
But before that we need to clarify a few points:
| Has the employee worked fully for the month? | If the month is only partially worked, then it is quite possible that his salary will be less than the minimum wage. At the same time, depending on the situation, the employee may have the right to receive social payments, for example, disability benefits if he was on sick leave |
| Is the salary calculated correctly to compare the minimum wage? | It includes not only the salary, but also various allowances, bonuses and other incentives related to wages |
| Compares with salary before or after tax | The first option is correct. After deducting personal income tax (13%), the employee may actually receive an amount less than the level of the indicator |
Every employer must understand that when paying wages below the minimum wage, he is at quite a risk. This will attract the attention of the Federal Tax Service, as well as other regulatory authorities.
What employers in Moscow need to know
The minimum salary in Moscow from January 1, 2021 cannot be lower than 20,195 rubles. Therefore, companies located in the MSC cannot pay employees less than this amount.
Note that the Moscow minimum wage, applied from January 1, 2021, already includes the tariff rate (salary) or wages under a non-tariff system, as well as additional payments, allowances, bonuses and other payments, with the exception of payments:
- for working in harmful and dangerous conditions;
- combining professions (positions), expanding service areas, increasing the volume of work;
- night and overtime work, work on weekends and holidays.
In other words, for overtime work, you need to pay above the Moscow minimum wage. This procedure follows from clause 3.1.3 of the Tripartite Agreement. Compare the total payment amount for the month with the minimum wage before you withhold personal income tax. That is, a person can receive less than the minimum wage.
Include in the minimum wage all bonuses and rewards included in the remuneration system. The exception is regional coefficients and bonuses; they are calculated above the minimum wage.
For wages below the minimum wage, fines are imposed without proper justification. The company, if the violation is the first, faces a fine from 30,000 to 50,000 rubles. If the violation is repeated – from 50,000 to 70,000 rubles. For an official, the sanctions are accordingly: a fine from 1000 to 5000 rubles. and from 10,000 to 20,000 rubles. or disqualification from one to three years. The same rules apply to an entrepreneur as to an official, only disqualification cannot be applied to an individual entrepreneur (clauses 1 and 2 of Article 5.27 of the Code of Administrative Offenses of the Russian Federation).
Minimum wage in the Moscow region from January 1, 2021
From January 1, 2021, in the Moscow region there is a minimum wage of 15,000 rubles (Agreement on the minimum wage in the Moscow region dated October 31, 2019 No. 243). It is possible that during 2021 the minimum wage in the Moscow region may increase. This will only happen when a new regional agreement is adopted. Such a document has not yet been approved.
Thus, on January 1, 2021, the minimum wage in the Moscow region was set at 15,000 rubles. This minimum wage must be applied by all employers in the Moscow region who have not switched to using the federal minimum wage since January 2021.
The minimum wage in the Moscow region from January 1, 2021 is 15,000 rubles.
The situation is somewhat different for budgetary organizations.
State employees of the Moscow region must be guided by the federal minimum wage, which is 12,792 rubles.
If an employer in the Moscow region refuses the regional minimum wage, then the salary accrued to employees for a fully worked month cannot be less than the federal minimum wage. Otherwise, the employer will be held accountable for violating the labor rights of employees.
Employers in the Moscow region have been given 30 days to write a reasoned refusal from the regional minimum wage. To do this, you need to send a letter to the Ministry of Social Development of the Moscow Region at the address: 123592, Moscow, st. Kulakova, 20, bldg. 1.
In this case, employees can be paid at least the federal minimum wage.
Responsibility for wages below the minimum wage
In cases where the salary of employees is less than the minimum wage, the employer may be held liable in the form of a fine (Article 5.27 of the Code of Administrative Offenses of the Russian Federation). The fine for legal entities ranges from 30,000 to 50,000 rubles, and for repeated violations - from 50,000 to 70,000 rubles. The following responsibilities are provided for the head or chief accountant of an organization: the first violation detected is a warning or a fine of 1,000 to 5,000 rubles, repeated and subsequent violations are a fine of 10,000 to 20,000 rubles. Disqualification for a period of one to three years is also possible (Article 5.27 of the Code of Administrative Offenses of the Russian Federation).
Some may apply the federal minimum wage rather than the Moscow one
Employers have the legal opportunity to refuse the Moscow minimum wage and adhere to the federal minimum wage in Moscow in 2021. Your refusal must be sent within 30 calendar days from the official publication of the Moscow government decree on the new living wage for the 3rd quarter of 2021. The refusal must be sent to the Moscow Tripartite Commission at the address: 121205, Moscow, st. Novy Arbat, 36.
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06.01.2020
Minimum wage in Moscow from January 1, 2021
The minimum wage in Moscow from January 1, 2021 is determined by the Moscow tripartite agreement on the minimum wage for 2019-2021 (text [21 Mb .PDF]), registered with the Moscow City Hall under number No. 77-1094 dated October 1, 2021. The agreement establishes that the minimum wage in Moscow depends on the subsistence level of the working population in Moscow. Once every three months, the cost of living is subject to review by city authorities, who decide to change it or maintain it at the same level.
With an increase in the cost of living in the capital, an increase in the minimum wage follows. The new minimum wage begins to be applied on the 1st day of the month following the month in which the next decree of the Moscow government on the cost of living comes into force. In cases where the cost of living has remained at the same level or its value has decreased, the minimum wage in Moscow remains at the same level. This provision is enshrined in clause 3.1 of section 3 of the trilateral agreement.
Decree of the Moscow Government No. 2207-PP dated December 15, 2020 established the cost of living for the working population of the capital in the amount of 20,589 rubles. Respectively
The minimum wage in Moscow from January 1, 2021 is 20,589 rubles.
The minimum wage in Moscow cannot be lower than 20,589 rubles. This value is effective from January 1, 2021.
The established minimum wage will remain in place until it exceeds the subsistence level of the working population of Moscow or the Moscow government changes the rules of the game. However, organizations financed from the federal budget must be guided by the federal minimum wage (Article 133.1 of the Labor Code of the Russian Federation), which is 12,792 rubles.
Minimum wage in Moscow and salary
The minimum wage is the minimum wage that an employer, whether an organization or an individual entrepreneur, is required to pay to its employees for a fully worked month. This provision is specified in Art. 133 Labor Code of the Russian Federation. However, with clean hands, an employee can receive less than the minimum wage - minus personal income tax and other deductions, such as alimony.
However, the employee's salary may be less than the minimum wage. This is due to the fact that the total salary cannot be , which, in accordance with Art. 129 of the Labor Code of the Russian Federation includes:
- remuneration for work;
- various compensation payments, including regional coefficients and other additional payments and allowances;
- all kinds of incentive payments, including bonuses.
For organizations and individual entrepreneurs, it is possible not to apply the Moscow regional minimum wage, but to adhere to the federal minimum wage, which from January 1, 2021 is 12,792 rubles.
To do this, it is necessary to issue a reasoned refusal and send it to the Moscow Tripartite Commission at the address: 121205, Moscow, st. Novy Arbat, 36. This must be done within 30 calendar days from the date of publication of the agreement. The company must justify its refusal with compelling reasons (Article 133.1 of the Labor Code of the Russian Federation). For example, an emergency situation, a business crisis, or the fact that you have just started your work. Without compelling reasons, the authorities will not allow wages to be set below the regional minimum.
If the organization does not send a refusal on time, then it is considered that it has automatically joined the agreement. In this case, the salary of employees must be set not lower than the Moscow minimum wage.
But even if the tripartite commission accepted the refusal, there is a possibility that tax inspectors will call the director of the company to the salary commission. They will ask you to explain why the organization's wages are below the regional minimum wage. And if the director ignores the call, an on-site inspection is possible. The Federal Tax Service of Russia instructs subordinates to pay special attention to companies whose salaries do not reach the regional subsistence level (letter of the Federal Tax Service of Russia dated July 17, 2013 No. AS-4-2/12722).
If the company has not waived the Moscow regional minimum wage, but does not comply with it, then a fine of 50 thousand rubles is possible (Part 6 of Article 5.27 of the Code of Administrative Offenses of the Russian Federation)
Please note that the regional minimum wage is the regional minimum wage. To calculate various social benefits, it is necessary to use the federal minimum wage.
Part-time work and minimum wage with piecework wages
Often, employees on “piece-work” work part-time or part-time (weekly) (Article of the Labor Code of the Russian Federation). In this case, remuneration for labor when the production standard is met must correspond to the minimum wage in proportion to the time worked.
Example
The piece rate for the production of one part is 100 rubles. With a time limit of 40 hours per week, a turner must produce 120 such parts in a month. What will be the salary of a turner who works part-time 20 hours a week, provided that the minimum wage is 11,280 rubles?
When the month is fully worked and the production quota is met, the turner will be credited with:
120 pcs. / 40 hours x 20 hours x 100 rub. = 6000 rub.
The amount received is less than the minimum wage (11,280 rubles), but it must be taken into account that if working part-time, it should be compared with the “minimum wage” in proportion to the time of work. When working 20 hours a week, the duration of working hours is half that required according to the norm (40 / 2 = 20), which means:
RUB 11,280 / 2 = 5640 rub. – it is with this amount (half of the minimum wage) that the accrued salary is compared.
The amount of earnings of a turner (6,000 rubles) in this case exceeds the level of the minimum wage (5,640 rubles), so no additional payment will be required.
What does the minimum wage consist of?
Art. 129 of the Labor Code of the Russian Federation states that the minimum wage includes the following transfers to the employee:
- salary determined based on the specialist’s qualifications, complexity and characteristics of the work;
- compensation payments (for example, due for harmful or dangerous working conditions);
- incentive payments (annual, quarterly, monthly bonuses, etc.);
- other additional payments received from the hiring company.
If an employee works as an internal part-time worker, i.e. In addition to the main duties, he performs additional ones, the latter are paid separately. The income of an external part-time worker depends on the agreements reached between him and the company.
If a person worked at 1.5 times the rate instead of one, he cannot receive a salary of one “minimum wage”. His income will be calculated in proportion to the time worked.
Labor legislation prohibits including in the calculation of the minimum wage payment for work overtime, on weekends and holidays. For this, separate transfers are required, which are determined at one and a half rates in the first two hours and at double rates thereafter. By agreement with a specialist, monetary compensation can be replaced by additional days of rest.
If an employee’s salary is less than the “minimum wage”, the employing company is obliged to make an additional payment. For example, if a specialist is assigned a salary of 5,000, and there are no compensation or incentive payments, the employing company is obliged to transfer him an additional (9,489 – 5,500) = 3,989 rubles. If it does not do this, regulatory authorities will apply penalties against the organization.
