How the minimum wage has changed in the regions since January 1, 2022

What is the minimum wage

Minimum wage (minimum wage) is a value determined in monetary terms for a certain constituent entity of Russia, less than which it is prohibited to set and pay wages per staff unit for a fully worked shift (month) or a developed standard.
The monetary expression of the minimum wage is regulated by Art. 1 of Federal Law No. 82 of June 19, 2000. The latest changes were made by Federal Law No. 406-FZ of December 6, 2021, which increased the minimum wage from 12,792 to 13,890 rubles. If we analyze how the minimum wage increased from 2022 to 2022, then literally in 6 years the wages of Russians increased almost 1.8 times.

Since last year, the increase in the minimum wage is not tied to the cost of living calculated for the 2nd quarter of the previous year. Now the minimum wage is higher than the subsistence level in Russia and correlates with the median (average) salary in the country.

Minimum wage and living wage: what will change from May 1, 2022

It is necessary to distinguish between the concepts of minimum wage and subsistence minimum.

The minimum wage is the minimum wage that an employer is obliged to pay to its employee, provided that he has worked full time. When determining the minimum wage at an enterprise, all amounts paid are used, and not just the official salary.

The living wage is an indicator that is established by the Government of the country, taking into account the following indicators:

• Composition of the consumer basket;
• Statistical data on changes in prices for products, services, etc.;
• Statistical data on mandatory fees and payments;
• Price change index.

Thus, the minimum wage and the living wage are not the same concepts. The minimum wage serves as a lower limit when determining the size of wages, and the living wage generally provides an assessment of the quality of life.

Currently, there is a process of gradually increasing the minimum wage to the subsistence level. Previously, it was assumed that these two indicators would be equalized from 05/01/19. However, recent statements by the President of the country indicate that this will happen much earlier - from May 1, 2022. From now on it will be 11,163 rubles.

Attention! In the future, the minimum wage will be raised automatically every year to the level of the subsistence level for the 2nd quarter of the previous year. If this indicator decreases, then the minimum wage will remain at the previous level (i.e., it will not be lowered).

Who determines the minimum wage?

The minimum wage, by virtue of Article 133 of the Labor Code of the Russian Federation, is established annually exclusively by the State Duma of the Russian Federation. The bill goes through several stages of preliminary hearings and is subject to mandatory approval by the Federation Council. The law is signed by the President of the Russian Federation. The document comes into force on January 1 of the year in which the increase is planned. This procedure works at the federal level, is the same for everyone, and therefore, for example, the minimum wage in the Irkutsk region from January 1, 2022 is equal to the same 13,890 rubles. As in many other regions.

But the authorities of the constituent entities of the Russian Federation, on the basis of Article 133.1 of the Labor Code of the Russian Federation, have the right to set the minimum independently, applying special increasing coefficients to the federal minimum, determined by economic indicators in the region. In this way, for example, they increased the minimum wage in the Krasnodar Territory in 2022, deciding that they should pay not 13,890 rubles, but 14,585 rubles.

IMPORTANT!

The regional minimum is required only for commercial organizations. Those financed from the state budget or the budget of a constituent entity pay the minimum wage established by federal law.

To fix the regional minimum wage, the indicators of the median salary in the constituent entity of the Russian Federation, the characteristics of territorial conditions and the geographical location of the region, and other factors are determined. Decisions are fixed by separate regulations of the subject or municipality. It is documented that from what date the minimum wage has increased and by how much, a tripartite regional agreement, the parties to which are:

• government of a constituent entity of the Russian Federation;
• employers' representatives;
• representatives of trade unions representing the interests of workers.

The regional minimum wage is allowed to be set at the federal level (this option is presented, for example, in the tripartite agreement on the minimum wage in the Kamchatka Territory from 01/01/2022) or higher than the figure regulated in Art. 1 of Federal Law No. 82 of June 19, 2000.

Employers are required to comply with the regional minimum wage, but have the right to refuse this if there are good reasons. Regional authorities should be notified of such circumstances and refusal to adhere to the minimum wage established by a constituent entity of the Russian Federation within 30 days after the publication of the relevant law approving the minimum wage. For example, a regional agreement for the next 3 years provides for changes to the minimum wage in 2022 in the Altai Territory for employees in the extra-budgetary sector to 16,638 rubles. If the company is not able to pay that much, then it turns to local authorities with explanations. If the employer does not have time to prepare a reasoned refusal within the first 30 days after the publication of the regional agreement, then he is considered to have acceded to it. In this case, paying wages below the regional minimum is considered a violation of the law and the labor rights of employees.

Regional agreement on the minimum wage in the Krasnoyarsk Territory for 2022.

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December 19, 2022

The Federation of Trade Unions of the Krasnoyarsk Territory held negotiations with social partners to conclude a Regional Agreement on the minimum wage in the Krasnoyarsk Territory for 2022.

During the negotiations, the Federation of Trade Unions of the Territory proposed to establish a minimum wage in the territories of the region equal to the minimum wage (minimum wage) established at the federal level from January 1, 2022 (9,489 rubles) multiplied by the regional coefficient and percentage bonuses. Thus, for example, in the central and southern regions the minimum wage would be 15,182 rubles. The regional government calculated that to implement an agreement with such parameters it would be necessary to allocate an additional 6.1 billion rubles from the budget. and proposed their own parameters for the minimum wage. For the calculation, figures were taken from the Regional Agreement on Minimum Wages in force in 2022, indexed by 4%. Regional organizations of the public sector trade union (health care, government institutions, education, culture) made their own adjustments and proposed making an exception for the central and southern regions of the region and instead of 11,016 rubles. (10,592 rubles * by 4%) to set the minimum wage at the level of the subsistence level of the second quarter in Russia (11,163 rubles). A draft regional agreement with these parameters was sent to the regional government for approval.

However, the decision of the Constitutional Court of the Russian Federation determined that the minimum wage (minimum wage in a constituent entity of the Russian Federation) does not include the regional coefficient and the percentage increase in wages. Thus, the minimum wage established at the federal level (from January 1, 2018 – 9,489 rubles) must be subject to a regional coefficient and a percentage increase. For example, in the central and southern regions of the region this value will be 15,182 rubles. And in the northern regions of the region this value will be greater.

It was precisely with these parameters that the FPKK initially entered into negotiations. Due to the fact that the regional government and regional employers' associations did not support the trade unions' proposal, the Federation of Trade Unions of the Krasnoyarsk Territory decided that it was impossible to conclude a Regional Agreement in parameters that do not meet the ruling of the Constitutional Court of the Russian Federation. A corresponding letter was sent to the acting governor of the Krasnoyarsk Territory, Alexander Uss .

Materials: Letter to the Governor
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Features of establishing the minimum wage

In Russia there are many areas with difficult climatic and geographical conditions, where a regional coefficient is provided that increases the amount of payments to citizens. In accordance with the position of the Constitutional Court of the Russian Federation, such regional allowances are prohibited from being included in the amount of payments to the employee in order to bring it to the minimum wage. All of them are added to the minimum wage and actually increase it. For example, let’s take the minimum wage of the Omsk region in 2022: for state employees it is federal (13,890 rubles), and for employees of commercial companies - 14,233. But both of them are charged regional coefficients for the amount of the minimum wage.

In some regions, which include the territories of the Far North, not only “northern” allowances are applied, but also differentiation of the minimum wage for individual regions and cities. An example is the Krasnoyarsk Territory, where by law the territory is divided into 6 districts, and each has its own coefficient that increases wages.

About the minimum wage in the region

Minimum wage is the amount of the minimum monetary remuneration that an employer must pay to an employee employed on a full-time basis and with full-time hours worked. The amount of the minimum wage is established by the Government of the Russian Federation and cannot be lower than the subsistence level (LM), as stated in Art. 133 Labor Code of the Russian Federation. This is quite logical, because it is basically impossible to live without receiving the PM amount. The PM is also established by the Government of the Russian Federation after receiving a report on the standard of living of the population from Rosstat.

It is worth knowing that an employee may be given an amount less than the minimum wage, because personal income tax will be deducted in the amount of 13%. For violation of wage rates, the employer will be brought to administrative or criminal liability.

In the Kemerovo region, the minimum wage differs from the minimum wage and is “tied” to the regional minimum wage. The PM is calculated by the territorial Rosstat and submitted to the Governor of the region. After the approval of the new monthly minimum wage, the tripartite commission begins to consider the issue of increasing minimum wages in various industries to the monthly minimum wage level.

The commission operates in accordance with the Law of February 21, 2003 No. 7-OZ “On tripartite commissions for regulating social and labor relations.” There are 7 people from each side. The decision is made by the consent of all parties. According to the regional Law of June 23, 2003 No. 33-OZ “On legislative activity in the Kemerovo region”, the Agreement is published in the Kuzbass newspaper and in the bulletin of deputies of the Kemerovo region.

Gradual increase

Lawmakers increase the minimum wage every year. Below is the minimum wage table for 2018-2022, which shows how this indicator has changed over the past few years:

Responsibility for violation by employers

If a region has approved its own indicator, but the employer pays employees less, then he will be brought to administrative responsibility under Article 5.27 of the Code of Administrative Offenses of the Russian Federation. The first time a warning is provided, then an administrative fine is imposed:

• for officials - from 10,000 to 20,000 rubles;
• for organization - from 30,000 to 50,000 rubles.

Please note that if an employer is located in one region, and its employees perform duties in another, then they must pay according to the rules of the entity where the citizens actually work. For example, the employer is registered in Moscow. But workers perform duties in Kabardino-Balkaria, and the minimum wage in the Kabardino-Balkarian Republic for workers in the non-budgetary sector is equal to the federal minimum wage. If employees receive a minimum of 13,890 rubles, and not the capital’s salary, then the employer will not be fined.

ConsultantPlus experts looked at what payments need to be revised in 2022 in connection with the new minimum wage. Use these instructions for free.

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