MOSCOW, January 1. /TASS/. On January 1, 2020, Russia’s minimum wage will increase by 7.5% to 12,130 rubles ($195.80), the press service of the Ministry of Labor of Russia told TASS.
In 2019, it was 11,280 rubles ($182.10). At the same time, taking into account the use of regional coefficients and percentage premiums on wages in excess of the minimum wage, the 2020 hike will range from 850 rubles ($13.70) in the central and southern regions of the country to 2,550 rubles ($41.17) in the Far East regions.
According to the Ministry of Labor, the minimum wage increase will affect about 3.2 mln people, half of which are employed in state and municipal institutions. The volume of budget expenditures at all levels to raise the minimum wage will be 20.9 bln rubles ($337.4 mln) in 2020, 5.8 bln rubles ($93.63 mln) of which will be allocated from the federal budget.
The minimum wage for Russians is calculated before tax on personal income. Employers cannot pay less than the figure; otherwise, they face fines and prosecution. In addition, the duration of sick leave, maternity benefits for those who had no income or were lower than the minimum wage depend on the minimum wage.