Raising the Minimum Wage to the Level of the Living Wage is Expected to Reduce Poverty among Working Russians

11 may 2018 | Rossiyskaya Gazeta

One of the goals behind the new May decree of the President is to halve poverty, writes the Rossiyskaya Gazeta. Essentially, this means increasing the real household income and ensuring a more even distribution of income among various social groups as well as between different regions, Deputy Head of the Analytical Center Gleb Pokatovich explained to the newspaper.

Gleb Pokatovich
Gleb Pokatovich
Deputy Head

The government has already taken some steps to achieve that: thus from May 1st the official minimum wage is to be equal to the last year's living wage, Mr. Pokatovich pointed out. "This should significantly reduce poverty among the working poor, an indicator of decent work in the methodology used by the International Labor Organization," the expert is sure. According to a recent study conducted by the Federal Statistics Service, in April 2017 7.3% of the country's working population qualified as working poor were seeing how their wage was less than the living wage for the working population determined by the executive authorities of the subjects of the Russian Federation.

The Ministry for Labor of Russia along with other government agencies has been tasked with drafting a bill on keeping track of labor activities in digital format. Digital employment records should make it easier to calculate pensions and keep employment records in order when people change their workplaces, they will also help to formalize employment while keeping the labor market flexible, Mr. Pokatovich notes.

The topic of the working poor was reviewed by the Analytical Center experts in one of the social bulletins the center put out last fall.

Source: Rossiyskaya Gazeta