Putin proposed to increase the minimum wage to 85 percent of the subsistence minimum

© RIA Novosti / Alexei Druginderal in potomacfever Putin holds a meeting with members of the Russian Government. 11 September 2017Putin proposed to increase the minimum wage to 85 percent of the subsistence minimum© RIA Novosti / Alexei Druginderal the image Bank

Vladimir Putin proposed from 1 January 2018 to raise the minimum wage (SMIC) with the current 71-72% of the subsistence minimum up to 85% and by 2019 at the latest to equate them.

«We need to solve the fundamental problem — to bring the minimum wage to a level not below the subsistence level, it is necessary to equalize it with the cost of living and overcome the situation when minimal possible salary does not cover even the basic costs of citizens», — said the President.

Putin noted that he understands «the internal debate that goes to the government,» and colleagues who defend different points of view, «because these steps lead to major additional expenses of the state, in fact, and business.»

However, according to the President, to increase the minimum wage to a living wage as soon as possible, proceeding from possibilities of the budget. Putin instructed to submit a proposal to the state Duma together with the draft Federal budget for the next three years.

In 2017, the minimum wage was increased once, from 1 July. Now it is 7.8 thousand rubles — almost 72% of the subsistence minimum (9889 rubles per month). In April, speaking in the state Duma with the report on the work of the government, Prime Minister Dmitry Medvedev said that raising the minimum wage to a living wage would be in the next few years.