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Minimum wage in Russia to amount to $166 from 2018

The minimum wage will be 85% of the subsistence level

MOSCOW, September 11. /TASS/. The minimum wage in Russia from January 1, 2018 will be 9,489 rubles ($166) or 85% of the subsistence level, according to the bill designed by the Labor Ministry, the press service of the ministry reported.

"Russia’s Labor Ministry has prepared a draft law on the step-by-step increase in the minimum wage to the subsistence level of employable population. According to the president's instruction, the bill provides for raising the minimum wage in two stages: from January 1, 2018 to 85% of the subsistence level of employable population, and from January 1, 2019 - to 100%. As of January 1, 2018, the minimum wage will increase by 21.7% and amount to 9,489 rubles, " Labor Minister Maxim Topilin said as quoted by the press service.

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According to the minister, the draft law will be submitted to the State Duma (lower house of parliament) simultaneously with the draft budget for 2018-2020. The labor minister specified that the minimum wage will be set at the level of 100% of the subsistence level of employable population.

Earlier on Monday, speaking at a meeting with members of the government, President Vladimir Putin, proposed to raise the minimum wage to 85% of the subsistence level from January 1, 2018. Putin also proposed that the two indicators should become equal from January 1, 2019.

Law of June 19, 2000

On June 19, 2000, Putin signed the law on the minimum wage, which, with changes, is still effective but was amended several times. Under the first version of this law, the minimum wage was raised to 132 rubles from July 1, 2000.

The amount for the calculation of taxes and penalties became known as the "basic" and was rounded to 100 rubles. Since then it has not changed.

Since 2000, the minimum wage in Russia was changed 16 times.

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The threshold of 1,000 rubles was overcome on May 1, 2006 (1,100 rubles.), and the threshold of 5,000 rubles - on January 1, 2013 (5,205 rubles).

From July 1, 2016, the minimum wage was raised by 1,000 rubles to 7,500 rubles.

From July 1, 2017, it will be raised to 7,800 rubles, according to the law dated December 19, 2016.

Although the minimum wage was increased on July 1, 2016, it remains 24.2% below the subsistence level (9,889 rubles).

In spring of 2016, it was reported that the State Duma (lower house of parliament) was working on a bill that should raise the minimum wage to the subsistence level by 2020.

On May 2, 2017, Prime Minister Dmitry Medvedev instructed the government to draft the relevant law.

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