Changes in the minimum wage in 2020 from January 1

2024 Author: James Gerald | [email protected]. Last modified: 2024-01-12 17:37

From January 1, 2020, there will be changes in the minimum wage again. The latest news is intensively exaggerating the next transformation of the minimum wage, which should be paid to an employee, in accordance with current legislation. In a short period of time, the minimum wage was equalized with the level of the living wage of an adult able-bodied person. Now he is being pulled up to PM in the form he was in the second quarter of 2019.

Briefly about the changes from January 1

The Government of Russia has repeatedly raised the minimum wage level in recent years. Back in 2017, the officially established minimum wage did not even reach 80% of the amount established, at least, necessary for a working person to survive.

A paradoxical situation has developed in the country - some people worked for less than the amount that they would simply survive by grinding:

1. In May 2018, the minimum wage finally began to equal the subsistence minimum and amounted to 100% of the amount calculated according to statistical data on prices for food, basic necessities, utility bills and other needs.
2. Since January 1 of last year, the latest news reported on a new increase in the minimum wage - it was raised by as much as 117 rubles.
3. In May 2019, by analogy with May 2018, the media again expected an increase in the minimum wage, but did not wait for the announced event, after which they suggested that an extraordinary increase in the same period of 2018 was held before the presidential elections.
4. In the same month, deputies from the Communist Party of the Russian Federation submitted to the State Duma a scandalous bill to increase the minimum wage to 25 thousand rubles. It is this amount, in the opinion of the lawmakers, is necessary for survival in reality.
5. The amount of the minimum wage is set in accordance with Federal Law No. 82, which is called "On the minimum amount …", and in May 2019, according to this law, there were no changes, and the introduced bill was almost unanimously rejected.
6. The latest news in the media focused on the fact that for an after-hour increase in the minimum wage, amendments to the Federal Law are required. But there is no information that they are prepared or at least under consideration.

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In 2020, from January 1, the approved in September increase in the minimum wage to the level of the subsistence minimum for the second quarter of 2019 will come into effect.

The decision to use this indicator as an equivalent was made earlier. The State Duma deputies motivated such a verdict by the fact that the highest prices for food are set in the second quarter.

The inflation rate for the next two quarters, possible variations with winter prices due to a poor harvest, an increase in communal services over this period, are simply not taken into account.

What does this mean for ordinary citizens

From January 1, 2020, an event will take place that will affect the official salaries and wages of more than 4 million Russians. They followed with keen interest the fate of the bill providing for an increase in the minimum wage to 25 thousand rubles - twice as compared to the current level.

However, from January 2020, the minimum wage will not double. Its size, according to the latest news, will increase by 850 rubles: from 11,280 to 12,130 rubles. monthly. The law comes into force on January 1 of the new year.

The proposal to double the minimum wage sounded good, but it was nothing more than a PR move by the deputies from the Communist Party. Today, the federal budget does not have enough funds to do this at once for everyone who works for the minimum wage. But this is not the only reason why it is impossible to double the minimum wage in 2020.

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Criticizing such a slight increase in the minimum wage since January 1, 2020, journalists forget that the concept of "minimum wage" is not only the amount that more than 4 million Russians will receive every month, but also some other things:

• conventional value permanently used for calculations;
• the funds that large enterprises and small entrepreneurs must pay to their employees (for some of them, their financial situation will make it impossible for further activities if such a jump in salaries immediately occurs);
• the figure from which other, equally important and massive payments are calculated - for example, scholarships for students, vacation pay and travel allowances (recently, there has been a gradual departure from linking payments to the minimum wage, but this is happening slowly).

The fact that from January 1, 2020, the minimum wage will increase by 850 rubles, means not only an increase in the level of wages for a huge number of people, but also the accrual of other amounts from the state treasury, the pocket of entrepreneurs, the budget of enterprises.

The state can take this step thanks to the Pension Reform, which has increased the duration of the period of deductions of taxes and contributions to the Pension Fund of Russia, which previously received permanent subsidies from federal funds. As the results are obtained from this legislative step, the living wage of an adult able-bodied person will rise, and the minimum wage will follow it.

Regional solutions

The governments of Russian regions can take additional measures to improve the situation of low-income citizens and establish a regional minimum wage. This step is taken after discussing it with the Association of Entrepreneurs.

Immediately after the federal level, a table is published in the latest news with an indication of the regional minimum wage. The only condition imposed on it is that it cannot be lower than the legislatively approved level in the country.

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In large cities and megalopolises, for example, in Moscow and St. Petersburg, the minimum wage is traditionally higher. This is due to the higher cost of housing and communal services and food prices, payment for urban transport and other living conditions.

Summarize

From January 1, 2020, a new minimum wage level comes into effect, below which the employer is not entitled to pay an employee:

1. This is an important step, the funds for which came from the state thanks to some legislative measures.
2. The minimum wage will grow by 850 rubles in the country as a whole, and after it the value of the regional one will change.
3. The treasury does not yet have the necessary funds to raise the minimum wage by 2 times.
4. With the growth of the minimum wage, other payments tied to its value will also increase.