«Minimal» level to the subsistence minimum by 2019

© RIA Novosti / Mikhail Megasoftware dignity a hundred rubles. Archival photo«Minimal» level to the subsistence minimum by 2019© RIA Novosti / Mikhail Mordasov

MOSCOW, may 26 — RIA Novosti, Natalia Dembinski. The Ministry has decided how to compare the minimum wage (SMIC) and the minimum subsistence level. The bill, developed jointly by the Ministry of labor, Ministry of Finance and Ministry of economic development, submitted to the government.

As told on 26 may, the head of Department Maxim Topilin, the adjustment process will be gradual.

By 1 July the minimum wage will grow by 3% (up to 7,800 rubles) and approximately 73% of the subsistence level.

Further enhancement incorporated in the bill. From 1 January 2018, the minimum wage in a lump sum will increase to 90% of the subsistence minimum.

At this stage, according to Topilin, the Federal budget is required 25 billion roubles to compensate for increases in salaries of public sector employees.

The final stage of the increase will take place from 1 January 2019, the minimum wage will reach 100% of the subsistence minimum. However, as noted by the head of the Ministry of labor, the pace of the rise in the «still under discussion».

Poverty work

Now the minimum wage in Russia is 7500 rubles, since July of this year it will increase by 300 roubles, and the average living wage currently stands at about 11 thousand rubles.

Workplace that does not provide the person the possibility of the existence, in fact inefficient, since the government essentially subsidizes its contents.

«The state gives these people social security benefits, pays them to the subsistence level. It turns out that cross-financing of social benefits, which distorts the cost of labor and the economy», — stated Alexander Safonov, Vice-rector for development of the Academy of labor and social relations.

To close in two years

The Ministry of labor has previously recognized: the question of the approximation of the minimal wage to the subsistence minimum have «overripe», and it should be put in the near future. The office previously stated that on comparing the two figures it will take three to five years.

The decision about what the minimum wage should be a Federal record, he thinks is right, so as to take into account the peculiarities of living in regions of compensatory functions of other tools such as regional coefficients and Northern allowances.

The Domino effect

The solution in the form of law, which will identify the deadline for bringing the minimum wage to a living wage, would mean that the Finance Ministry will have to include corresponding expenses in berstane budget. But the process can still be delayed, said Safonov.© RIA Novosti / Natalia to Seliverstova in fotomonster Finance of the Russian Federation«Minimal» level to the subsistence minimum by 2019© RIA Novosti / Natalia to Seliverstova in fotomonster Finance of the Russian Federation

«The Ministry of Finance of the wave may then say that there is no money, and the law on the Federal budget to postpone the decision now,» he explains.

The main problem in the implementation of the bill, according to the expert that the increased minimum wage tied the entire structure of public sector wages.

Therefore, the Ministry of Finance, according to him, fears of a Domino effect, when raising the minimum wage will need to be increased in proportion to the compensation of employees into higher paying positions.

«The answer usually was: either to reduce the number of tariff rates, or to start saving on compensation and incentive payments,» says Safonov.

Regions will overcome

According to the labor Ministry, while raising the minimum wage from regional and municipal budgets need to allocate 56 billion rubles. According to Safonov, the money the regions in any case will find: commitments will co-finances the Federal budget, when the subjects begin to apply to the Treasury for support.© Fotolia / DmitrydesignerРоссийские rubles«Minimal» level to the subsistence minimum by 2019© Fotolia / DmitrydesignerРоссийские rubles

«Instead, the Ministry of Finance may require the regions to optimize the number of state employees, but painless, this problem can be solved by a revision of the cost efficiency of social policy», — said Safonov.

According to Volgin, the alignment of the minimum Wage, and the PM will solve the sharpest social problem — to minimize poverty, as officially poor are those whose income is below the subsistence level. In the future, he said, reduced the importance of the institution of the minimum wage. The next step will be an increase in the minimum wage as soon as it is at least a penny above the subsistence minimum, the very concept of the latter begin to overcome.