Amount of supplement to pension up to the subsistence level in 2022: table by region

Living wage and minimum wage: what is the difference?

The minimum wage is the amount of remuneration for labor, below which the salary of an employee who has worked a full month while performing the duties assigned to him cannot be lower (Article 133 of the Labor Code of the Russian Federation). The Labor Code of the Russian Federation directly states that the minimum wage should be higher or at least equal to the subsistence level of the working population.

The minimum wage is established by law both for the entire territory of the Russian Federation (federal minimum wage) and by region (Article 133.1 of the Labor Code of the Russian Federation). In the latter case, it cannot be lower than the federal one. The specific value of the regional minimum wage is determined by a 3-party commission (composed of representatives of the legislator, employers and employees).

Several minimum wage values ​​are allowed in the region, and they can be divided as follows:

• for public sector employees - depending on the subordination of the government structure (federal or regional);
• commercial structures - in relation to the regions of operation or the scale of business.

The cost of living is a calculated value that depends on the real cost of a number of parameters that form the volume of the consumer basket. The latter concept corresponds to the minimum set of products, non-food products and non-food products of October 24, 1997 No. 134-FZ necessary to maintain human life and health. It is supposed to be counted once a quarter (Article 4 of Law No. 134-FZ).

The size of the minimum wage, in contrast to the cost of living, is a forecast value, which must be used for some time after its establishment. Of course, the choice of this value is based on some real figures from past periods, but first of all depends on the financial capabilities of the state and its subjects that ensure the maintenance of government structures at the corresponding levels. Until now, these possibilities did not allow introducing a minimum wage level linked to the subsistence level. There are regions in the Russian Federation that focus on such a connection, but they are few. That is, the minimum wage and the cost of living in 2022 - both for the country as a whole and for the majority of constituent entities of the Russian Federation - are in a ratio that does not meet the standards proclaimed by labor legislation.

As a rule, the minimum wage is set for a year (not necessarily from its beginning), but can also change at other intervals. In the regions, the frequency depends, first of all, on changes in the federal value of this indicator. In the constituent entities of the Russian Federation that have actually tied the minimum wage to the subsistence level, its value is revised quarterly.

Read about the dynamics of the federal minimum wage here.

Living wage in 2018: table by region

What determines the cost of living?

How is the cost of living calculated in Russia in 2022? The rules for its determination are enshrined in Law No. 134-FZ (Article 4) and Decree of the Government of the Russian Federation dated January 29, 2013 No. 56.

The calculation should be carried out separately for each of the three main demographic groups of the population (working-age, pensioners, children) and per capita on average, based on:

• on the composition of the consumer basket (it was approved for the period until 2022 by the law “On the consumer basket...” dated December 3, 2012 No. 227-FZ);
• statistical data on changes in the price level for indicators that correspond to the composition of the consumer basket (products, non-food products, services, other obligatory payments).

This calculation is carried out both for the Russian Federation as a whole and for the regions, quarterly, based on the actual figures generated. Results for Russia are summed up, as a rule, in the last month of the quarter following the one being processed. The result is approved by a decree of the Government of the Russian Federation. That is, information on the real cost of living in Russia for 2022 will appear no earlier than June, after the completion of data processing for the 1st quarter.

An exception to this procedure is the establishment of a living wage for pensioners, the value of which determines the amount of social supplements to pensions (federal and regional). Its value is determined by the increase in food prices, and it is introduced annually for the next financial year before its start (clauses 3 and 4 of Article 4 of Law No. 134-FZ), and in the region this figure must be brought to the attention of the Pension Fund no later than 2 months before the start of the year of application.

What is the minimum cost of living for retirees at the federal level in 2022? Its value (RUB 8,726) is established by the Law “On the Federal Budget...” dated December 5, 2017 No. 362-FZ.

Read about the relationship between pension size and the cost of living here.

More about indexing

The food basket needs to be constantly reviewed, but the authorities carried out this exercise 3 years ago (even before the crisis). Today the situation has changed, so the authorities should think about revising this indicator and thereby increasing the size of this value. In modern times, the only possible way to increase this indicator is indexation to the size of the predicted inflation, and if we talk about what percentage of indexation is planned for the cost of living in 2018, then the authorities are not planning to hide anything. The indexation coefficient will fully correspond to the level of predicted inflation, that is, it will be 4-4.5%.

Related news:

• Living wage per child in 2022
• What will be the minimum living wage in Russia...
• Will there be a salary increase for judicial assistants in 2022?
• Increasing salaries for employees of the Ministry of Internal Affairs in 2022 in Russia
• Zulia Radjabova about 2022
• Will the salary (salary) increase be postal...

Accordingly, the level of a given economic quantity will increase exactly by a set percentage, that is, it will increase exactly as much as inflation in the state increases. No one will be able to call this increase too big, but such an increase is better than nothing at all.

In modern times, the monthly average per child is considered not just an important economic value, it also has important social significance. The fact is that it is on its size that children’s wages are calculated (according to the legislation of the Russian Federation, citizens of the country are officially allowed to work from the age of 14) and the amount of all kinds of benefits for children (as part of a program aimed at combating the worsening demographic situation in the country, the authorities should do everything to make them grow).

The situation in the regions

When discussing the cost of living per child in 2022, we should not forget that for each region this value will not be the same, because the standard of living in different regions of the state is not the same. Residents of the capital can boast of the highest figure, because the state allocates about 14,000 rubles for children living in Moscow and the region. Citizens of Chukotka can count on approximately the same amount, because citizens of this region have a fairly high level of income, but in all other regions the situation looks much sadder.

In conclusion, it is worth saying that, in accordance with the information written in the food basket, a child needs:

• about 125 kilograms of bakery products;
• approximately 62 kilograms of fruit and the same amount of meat products;
• 100 kg of potatoes and 110 kg of other vegetables;
• approximately 20 kilograms of fish;
• 300 liters of milk (and dairy products) and about 200 eggs.

Most independent experts rightly believe that the list of food products specified in the food basket for children in modern times is sorely lacking for normal life, so the basket needs to be revised.

Moreover, the cost of living per child in Russia today, compared to other countries, is considered extremely low, because, for example, in the USA this value is determined by the amount of 300-400 dollars, and the food basket includes twice as many items as in the Russian Federation (and this despite the fact that the standard of living in America is much higher), so the current Russian government has something to think about and something to strive for. In order to achieve a “normal” level of this value, the authorities will have to increase the PM approximately twice, and, frankly speaking, there are no funds in the state budget for this event, so news on this issue must be regularly monitored.

What will be the relationship between the minimum wage and the cost of living in 2018?

The onset of 2022 was marked by the introduction of a new federal minimum wage (RUB 9,489), which again did not reach the subsistence level. But the same law (“On Amendments...” dated December 28, 2017 No. 421-FZ) established the rule that starting from January 1, 2019, the minimum wage in Russia will be established annually in the amount of the subsistence minimum calculated for the working population for the 2nd quarter of the previous year. And if for the next year of calculation this value turns out to be less than for the previous one, then the minimum wage will not change towards a reduction.

Thus, the rule on the annual revision of the value of the federal minimum wage, linking it to the value of the subsistence level, is enshrined in law.

However, the President of the Russian Federation decided not to wait for January 2022 and signed the law “On Amendments...” dated 03/07/2018 No. 41-FZ, according to which the minimum wage will be equal to the subsistence level as early as 05/01/2018 and will be 11,163 rubles.

See here for details.

Results

The cost of living is calculated quarterly based on the real current assessment of indicators reflecting the composition of the consumer basket. The calculation is made both for the Russian Federation as a whole and for the constituent entities, and by breaking down these data into three main demographic groups of the population. One of these groups is represented by people of working age. In accordance with the provisions of the Labor Code of the Russian Federation, the value of the established minimum wage, the task of which is to ensure the minimum level of subsistence of the population, should be linked to the value of the subsistence minimum.

Meanwhile, the minimum wage, despite its systematic growth, regularly turns out to be below the subsistence level.
This situation has not changed with the advent of 2022. However, a date has been established by law (01/01/2019), starting from which the minimum wage will be annually adjusted to the cost of living calculated for the 2nd quarter of the previous year. But an unplanned increase in the minimum wage to the subsistence level is just around the corner - from May 1, 2018. You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.