Minimum wage from May 1, 2021 in Russia: when will the minimum wage increase - an increase order and how will this affect pensions

Why did the minimum wage increase on November 1, 2018?

The minimum wage in Moscow is tied to the subsistence level. If the cost of living becomes higher, then from the next month the minimum wage will also increase (clauses 3.1.1, 3.1.2 of the Moscow Government Decree dated December 15, 2015 No. 858-PP). The cost of living in the second quarter of 2021 in Moscow was 18,781 rubles. In this regard, from November 1, 2021, the minimum wage is 18,781 rubles.

At the federal level, no changes are planned in the procedure for ensuring the minimum wage for the fall of 2021. The next increase in the federal minimum wage will occur on January 1, 2021. “ Minimum wage in Russia from January 1, 2019. ”

Minimum amount of labor from 01/01/19: table by region

In accordance with the law on minimum wages, separate values are established in each subject of the Russian Federation, since due to the large territory of the country, climate conditions in the regions are different, including in the Far North. Therefore, from the beginning of the current reporting period, increased coefficients are applied depending on the location of the employer.

The table shows the minimum wage in force in 1919 in some regions.

The subject of the Russian Federation	Minimum wage
Altai	11 thousand 280 rub. + coefficient
Amur region
Arkhangelsk region
Astrakhan region
Bryansk region
Vladimir region
Volgograd region	In the amount of ½ of the minimum amount, but not less than the established amount for able-bodied citizens
JAO	12,000 rub. for all employees, regardless of length of service
Irkutsk region	11 thousand 280 rub. + coefficient
Kabardino-Balkarian Republic
Kaliningrad region
Kaluga region
Kostroma region	11 thousand 280 rub. + coefficient 1.15 = 12,837.45 rub.
Krasnodar region	11 thousand 280 rub.
Lipetsk region	In the amount of ½ of the minimum indicators, but not less than the established amount for able-bodied citizens (IV quarter of 2017)
Rostov region
Sevastopol	11 thousand 280 rub.
Smolensk region
Stavropol region

Note: if in the region in which the employer operates there is a special document establishing the minimum wage in the region, then the employee’s salary cannot be less than the amount specified in Federal Law No. This fact is established in Article 133.1 of the Labor Code of Russia.

Article 133.1 of the Labor Code of the Russian Federation “Establishing the amount of the minimum wage in a constituent entity of the Russian Federation”

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Composition of the new minimum wage from November 1, 2018

The new minimum wage from November 1 (18,781 rubles) should already include all types of bonuses and additional payments to employees, except for additional payments:

for working in harmful and dangerous working conditions
for overtime work;
for night work;
for working on weekends or holidays;
for combining professions.

It is also important that with the new Moscow minimum wage from November 1, 2018, you need to compare the amount before deduction of personal income tax. That is, if the employee worked the full working time for November. This means that he will receive at least 16,339.47 rubles in his hands. (RUB 18,781 – (RUB 18,781 x 13%).

Minimum wage 2021 and wages

When last year the businessman’s profit went beyond 300 thousand rubles upwards, then they added 1 percent to his deposits. Only the total value of funds transferred to the Pension Fund should not exceed eight minimum wages. Those involved in high-ranking business activities are in an advantageous position in this case. In other words, if we take into account the current size of the current minimum of 7.5 thousand rubles. accruals will not exceed 60 thousand rubles, which is equal to 8 minimum wages.

From raising the minimum wage in our country, ordinary residents will definitely benefit, since the amount of salary, payment for vacation and sick days will increase, but the female part of the population will have access to increased maternity benefits and for children. Of course, there remains the possibility of increasing services and goods, which was initiated by the same businessmen.

This contingent is very happy about short-term earnings as opposed to stable income generation. However, the management staff of the organization does not have the right to make accruals that do not reach the minimum wage. Because if they fail to comply with this condition, they face sanctions from the labor inspectorate.

How to switch to a new minimum wage

Any subject of the Russian Federation (including Moscow) can set its own minimum wage. But it cannot be lower than the minimum wage approved by federal law (Article 133.1 of the Labor Code of the Russian Federation). From May 1, 2021, the federal minimum wage is 11,183 rubles.

If the salary in Moscow to be calculated for November and December 2018 is lower than the minimum wage (18,781 rubles), then the employee must be paid extra. You can set the surcharge in two ways:

increase salary;
establish in a local act (for example, a separate order or Regulation on remuneration) an additional payment up to the minimum wage. That is, it should be directly stated that employees are given an additional payment up to the regional minimum wage. Then there will be no need to review salaries or change employment contracts.

An employee whose salary in Moscow is less than the new minimum wage may demand:

additional payment for the period of validity of the new minimum wage from November 1, 2018;
compensation for delayed payment from November 1, 2021 (Article 236 of the Labor Code of the Russian Federation).

The minimum wage in Moscow from November 1, 2021 does not affect the amount of benefits. Benefits are calculated based on the federal, not regional minimum wage.

Legal framework regulating the increase in the minimum wage from May 1, 2018

The following legal framework regulates minimum wages for labor:

Federal Law No. 82 as amended on March 7, 2021;
order No. 232n dated April 13, 2021;
Resolution No. 1702 of December 30. 2021.

Increase in the minimum wage from May 1, 2021 federal law

Federal Law No. 82, which establishes the minimum wage, regulates social and labor relations. On its basis, salaries and social payments are determined.

The law itself consists of 9 articles:

MPOT is equal to the subsistence level of the working population and is determined anew every year. Also, if the cost of living for the 2nd quarter of this year is less than the level of the 2nd quarter of the previous year, then the MPOT for the next year will not decrease, but will remain at the level of this year.
The second article states that this minimum payment is introduced by both budgetary and extra-budgetary organizations.
The minimum wage affects the size of salaries and compulsory social insurance benefits: benefits for temporary disability, pregnancy, childbirth, etc.

The fourth article establishes one hundred rubles as the base amount for paying scholarships, benefits and other mandatory social payments.
One hundred rubles is also set as the base for calculating taxes, fines and other payments.
F3 No. 76 “On the status of military personnel” introduces changes to regulate the salaries of military personnel.
Law No. 6-F3 is declared invalid.
Article eight instructs the government of the Russian Federation to bring legal acts into compliance with Federal Law No. 82.
The law has been in force since July 1, 2000.

Order to increase the minimum wage from May 1, 2021

Order No. 232n establishes the cost of living for the 4th quarter of 2021 . According to the order, for working citizens the minimum is 10,573 rubles, for children 9,603 rubles, and for pensioners 8,078 rubles.

From May 1, 2021, the minimum wage and subsistence minimum for working citizens are equal to 11,163 rubles. For pensioners and children, the minimum amount remains the same.

Resolution on increasing the minimum wage from May 1, 2018

Decree No. 1702 establishes the following method for determining the minimum for living:

established by order No. 232n;
the amount is determined quarterly;
the statistical service, no later than the 15th day of the month following the reporting quarter, provides the Ministry of Labor and Social Protection with information on the level of prices for goods and services;
information on the cost of living is subject to official publication;
The resolution comes into force on the first day of 2018.

If the payment is less than the new minimum wage

If the Moscow salary for November and December 2021 is lower than the minimum wage, then the employer may be brought to administrative and criminal liability. An individual entrepreneur or director of an organization may be fined in the amount of 1,000 to 5,000 rubles, and an organization – from 30,000 to 50,000 rubles. (Part 1 of Article 5.27 of the Code of Administrative Offenses of the Russian Federation). Moreover, even an accountant can be held accountable if he calculates wages incorrectly. See “The Federal Tax Service allows you to fine accountants.”

For a repeated violation, you can be fined from 10,000 to 20,000 rubles. or disqualify for a period of one to three years. Fine for individual entrepreneurs for repeated violation: from 10,000 to 20,000 rubles, for a company – from 50,000 to 70,000 rubles. (Part 4 of Article 5.27 of the Code of Administrative Offenses of the Russian Federation).

Minimum wage 2021 and benefits

If we take into account practical experience, it can be noted that making extra payments does little to contribute to the minimum rate in achieving the established minimum subsistence level for the same period. For example, the indexation of the minimum wage, carried out twice last year, raised its value exclusively to 60 percent of the minimum, and such actions are considered non-compliance with the letter of the law in the field of labor relations. Today, the government only promises to improve the situation and raise the minimum wage to the subsistence level. But in reality everything remains in its place. Last year, the minimum wage was increased by only 4 percent, as opposed to the expected 17.1 percent.

Most of all, the constant precarious position of the economy affects socially vulnerable categories of Russian citizens. Statistics show that the poor stratum of our compatriots mainly includes single mothers and families with a considerable number of children. So, for the most part, it is these people who are concerned about how much the minimum wage will be in 2021 per child.

How can an employer refuse the new minimum wage?

Any employer has the right to refuse to apply the Moscow minimum wage. To do this, you need to draw up and send a reasoned refusal to the local branch of the Committee on Labor and Employment. The period is 30 calendar days from the date of publication of the tripartite agreement on the regional minimum wage (Article 133.1 of the Labor Code of the Russian Federation).

In this case, the refusal must be motivated, that is, you will need to indicate the reasons why your organization does not want to pay its employees the regional “minimum wage”. As such reasons, we can indicate, for example, “crisis”, “few orders”, “risk of mass layoffs of employees”. In Moscow, the refusal must be sent to the tripartite commission at the address: 121205, Moscow, st. Novy Arbat, 36/9.

An employer who refuses the minimum wage in Moscow on time has the right to adhere to the federal minimum wage. Now it is 11,163 rubles.

However, please note that paragraph 8 of Article 133.1 of the Labor Code of the Russian Federation obliges the employer to attach a set of documents to the refusal, including proposals for the timing of increasing the minimum wage of employees to the amount provided for in the agreement. That is, even a timely refusal does not mean that you will not have to pay the new minimum wage established on November 1, 2018. The employer is simply given the right to delay its introduction.

Also, Article 133.1 of the Labor Code of the Russian Federation gives the Moscow authorities the right to invite representatives of an employer who has refused to adopt the new minimum wage from November 1, 2021, for consultations. That is, abandoning the Moscow minimum wage threatens a collision with administrative resources.

Minimum wage in Russia: Is it possible to raise the minimum wage to 25 thousand rubles

This year, the minimum wage was finally equalized to the subsistence level.

Photo: Alexey BULATOV

Members of the Communist Party of the Russian Federation introduced a new bill to the lower house of parliament. They propose to raise the minimum wage (minimum wage) to 25 thousand rubles from January 1. According to deputies, this will bring salaries out of the shadows and increase citizens’ incomes. The government thinks differently. Let's figure it out.

What is the current minimum wage?

This year, the minimum wage was finally equalized to the subsistence level. Since May, it has become 11,163 rubles across the country. Employers in no region can pay less than this value. Otherwise they will face fines.

However, in some wealthier regions the minimum wage is higher. For example, in Moscow it is 18,742 rubles, and in St. Petersburg - 17 thousand. Deputies from the Communist Party faction believe that the minimum wage should be raised to 25 thousand rubles.

In their opinion, the cost of housing and communal services and treatment alone exceeds 25 thousand rubles per month. It is not entirely clear on what basis these calculations were made. The deputies did not provide any links to the studies.

Why not increase it?

It is clear that everyone will be in favor. Especially those who receive less than 25 thousand rubles a month. And according to statistics, there are more than 70% of them. For them, such a decision will be a blessing.

On the other hand, this will entail additional budget expenses. Even according to communist calculations, it turns out that over 300 billion rubles will be required for these purposes. And in this case, we mean only additional payments to public sector employees.

In principle, the amount is reasonable. For example, this year the budget surplus will be more than two trillion rubles. And in the next three years, revenues will exceed expenses by another five trillion. That is, there is money. But not everything is so simple...

Employers are against

Companies will need to raise wages. And this can seriously hit them. Especially for those who use unskilled labor. In addition to the net salary to employees, the business pays income tax of 13% and insurance premiums of 30%.

For example, if a person receives 20 thousand rubles net, the employer’s expenses amount to 29,900 rubles. It’s easy to calculate: if the minimum wage in Russia is raised to 25 thousand, the company’s expenses will increase by 25% - up to 37.5 thousand. In conditions of a permanent crisis, this is a lot.

“The implementation of the bill will entail additional costs for employers, which may have a negative impact on organizations with a high proportion of low-paid workers and lead to the emergence of wage arrears, refusal to formalize labor relations in accordance with the requirements of labor legislation, and the dismissal of workers,” the Cabinet of Ministers said in its conclusion.

In other words, people will either be fired or paid a completely black salary. That is, the effect of the bill will be the opposite. This cannot be allowed. For the economy to develop, it is necessary to find a balance between the interests of business and employees. A sharp increase in the minimum wage is definitely not the best way. Not to mention that this could lead to increased inflation. If we raise the minimum wage, it will be done gradually.

Will he grow up at least a little?

According to experts, we need to start somewhere else—raising the cost of living. And he will pull the minimum wage with him. And to do this, we need to reconsider how it is now considered. Current indicators, unfortunately, are far from reality. If you delve into the methodology for calculating the food basket, you will discover surprising things. For example, for some reason Rosstat is sure that candy costs 30 rubles per kg. Although even a kilo of sugar costs about 40 rubles. But statistics do not count non-food goods and services at all, but simply multiply spending on food by two...

And finally, according to experts, it is necessary to review the content of the consumer basket and add some goods and services that have become vital. This is done in all countries of the world.

— The cost of living is calculated, as a rule, based on the cheapest products. There are not many necessary product categories there. For example, a computer or a mobile phone, and you cannot live without them in the modern world. It's high time to reconsider the parameters. According to our calculations, the cost of living should be at least 1.5 times higher,” says Vyacheslav Bobkov, head. laboratory of problems of level and quality of life of the Institute of Socio-Economic Problems of Population of the Russian Academy of Sciences.

BY THE WAY

What about in other countries?

In almost all countries of the world the minimum wage is equal to the subsistence level. This is the essence of social policy. Help those who lack money and give them the opportunity to earn enough to buy everything they need.

For comparison, in India this figure is about $90, and in Australia - more than $2200 per month (for more details, see the chart). At the same time, comparing the minimum wage with the average is not entirely correct. Rosstat itself admits that the latter value is not very correct.

For example, in our country only 12% of the population receives more than 40 thousand rubles per month. Although this amount is considered the average salary in the country. So, in order to raise the level of income of the population, we need not artificial increases, but real economic growth, which will lead to an increase in wages. And solving this problem is much more difficult than writing another bill.

Minimum wages in different countries of the world

Photo: Alexey STEFANOV