Viktor Lyashok, a leading researcher at the Institute of Social Analysis and Forecasting within the Presidential Academy’s Institute of Applied Economic Research, stated in a commentary for “Gazeta.Ru” that the announced increase in the minimum wage (MW) by Russian President Vladimir Putin will not significantly impact the salaries of compatriots.
According to Lyashok, the key factor is not the absolute value of the minimum wage, but its ratio to average or median wages. This ratio is known as the Kaitz Index. The higher this index, the greater the impact of the minimum wage on the economy, for instance, in reducing wage inequality.
Lyashok emphasized that the minimum wage in Russia will be indexed to wage growth, so overall salaries are not expected to change.
During the plenary session of the St. Petersburg International Economic Forum (SPIEF) held on June 7, the head of state announced that the minimum wage in Russia would be tied to the median salary: by 2025, it will constitute 48% of it and reach 22,000 rubles, and by 2030, it will increase to 35,000 rubles.
Photo: kremlin.ru