New minimum wage for 2020 in Russia
The government decided on a new minimum wage for 2020 in Russia. This indicator not only establishes the lower limit of the minimum possible wage level, but is also used to calculate a number of social benefits. Employers who pay employees at the minimum wage should take into account new values and reflect them in the documentation.
What will be the minimum wage in 2020
Unfortunately, not 25,000 rubles, as rumors about the Government’s plans were relatively recent. Some deputies of the State Duma proposed to consider bills on increasing the minimum wage in 2020 to 25 thousand, which, according to the authors, is closer to the real level of expenses of Russians, taking into account utility bills, treatment, taxes and a minimum grocery basket. As a result, all such proposals were wrapped up at the stage of examination due to the lack of funds for these purposes in the federal and regional budgets.
Thus, the minimum wage in 2020 will be determined by the Ministry of Labor according to the scheme that has been in effect since 2018, i.e. according to the subsistence minimum for an able-bodied citizen, valid in the 2nd quarter of 2019. It amounted to 12,130 rubles, which will correspond to the new minimum size. Compared with 2019, the increase will be 7.5% or 850 rubles. (12,130 - 11,280).
In fact, the minimum wage remains below the subsistence level, since the amount is indicated before deducting income tax in the amount of 13%. Russian law does not provide for the exemption of citizens receiving a minimum wage from personal income tax. Despite the fact that such an innovation (in particular, the possible introduction of a special tax deduction) is considered by the Government, there have not yet been any real actions in this direction. That is, at the moment, you can predict the actual minimum wage in the country in 2020 at the level of 10 553 rubles. per month (87% of the established cost of living).
According to Maxim Topilin, head of the Ministry of Labor, thanks to an increase in the minimum wage to 12,130 rubles. should improve the financial situation of about 4 million. Russians. On the other hand, Rosstat says that about 19 million Russian citizens live below the poverty line (2018 data).
In addition to the general value of the minimum wage in each region of the country, their minimum wage indicators will continue to be set in 2020, taking into account the particular socio-economic situation. The main condition is that they cannot be lower than the federal significance established by the Government. The indicators are reflected in the regional agreement, the draft of which is being developed by a special tripartite commission on social and labor relations. Moreover, the validity of such documents does not apply to the work of organizations that are financed from the federal budget: federal indicators apply to them. All other employers are required to focus on the regional level of "minimal".
If during the inspection the Labor Inspectorate determines that the payroll is below the established regional value, administrative responsibility is provided for employers under Art. 5.27 p. 6 of the Administrative Code): the minimum fine is 1000 rubles. (for individual entrepreneurs), the maximum is 50,000 rubles. (for legal entities).
Some regions have already decided on their minimum wage indicators, which will be effective from January 1, 2020:
- Altai Territory - 13,000.
- Kabardino-Balkarian Republic - 13 079.
- Kemerovo region. - 19,134.
- Moscow - 19 351.
- Moscow region - 14,200.
- St. Petersburg - 18,000.
- Tula region - 14,000.
- Khakassia - 18,048.
Thus, in many constituent entities of the Russian Federation, the minimum wage will be higher than federal indicators. The final information with the exact amounts for all regions will be known after the local authorities agree on the amounts with the trade unions and make changes to local regulations.
Download the preliminary table with the minimum wage for 2020 by region
What will change with the minimum wage
The increase in the minimum wage from January 1, 2020 directly affects a number of indicators:
- Wage. Subject to the worked out monthly norm of time, employers are not entitled to pay for the work of personnel below 12,130 rubles. When determining the final minimum possible amount, the regional coefficient is additionally taken into account.
Employers will have to prepare documents that fix the increase in employee salaries. To do this, you can reflect the increase in salary, but in this case you will have to change all the related documents where one way or another the size of the salary is mentioned (labor contract, staffing, etc.) A simpler option is to issue a local act on special surcharge.
- Hospital allowance: for employees who in the reporting period did not receive a salary or it was below the minimum wage. The amount of payment will be determined on the basis of the minimum average daily earnings: 12130 rubles. * 24 months : 730 days = $ 398.75 This amount, if the calculated real daily earnings will be lower.
- Maternity allowance: for women who did not have earnings in the billing period, the average value was below the minimum or the insurance period was less than 6 months. Deciding which indicator to use, minimum wage or real average earnings, will help to compare these indicators at the beginning of maternity leave. If correcting district coefficients are in place at the place of work, they are also taken into account in the calculation. The total amount of benefits for each month should not be lower than the minimum wage.
- The allowance for the care of a child up to 1.5 years. The reference to the minimum wage is valid in cases similar to the calculation of the sick-list.