Minimum living wage in Moscow 2021

One of the most pressing issues for most elderly Russians is financial support from the state. Currently, the government is struggling to meet the basic needs of retirees. Most likely, no active increase in pension benefits is expected. Experts are confident that the cost of living in Moscow in 2021 for pensioners will be directly related to the pension they receive.

Living wage and minimum wage: what is the difference?

The minimum wage is the amount of remuneration for labor, below which the salary of an employee who has worked a full month while performing the duties assigned to him cannot be lower (Article 133 of the Labor Code of the Russian Federation). The Labor Code of the Russian Federation directly states that the minimum wage should be higher or at least equal to the subsistence level of the working population.

The minimum wage is established by law both for the entire territory of the Russian Federation (federal minimum wage) and by region (Article 133.1 of the Labor Code of the Russian Federation). In the latter case, it cannot be lower than the federal one. The specific value of the regional minimum wage is determined by a 3-party commission (composed of representatives of the legislator, employers and employees).

Several minimum wage values ​​are allowed in the region, and they can be divided as follows:

• for public sector employees - depending on the subordination of the government structure (federal or regional);
• commercial structures - in relation to the regions of operation or the scale of business.

The cost of living is a calculated value that depends on the real cost of a number of parameters that form the volume of the consumer basket. The latter concept corresponds to the minimum set of products, non-food products and non-food products of October 24, 1997 No. 134-FZ necessary to maintain human life and health. It is supposed to be counted once a quarter (Article 4 of Law No. 134-FZ).

The size of the minimum wage, in contrast to the cost of living, is a forecast value, which must be used for some time after its establishment. Of course, the choice of this value is based on some real figures from past periods, but first of all depends on the financial capabilities of the state and its subjects that ensure the maintenance of government structures at the corresponding levels. Until now, these possibilities did not allow introducing a minimum wage level linked to the subsistence level. There are regions in the Russian Federation that focus on such a connection, but they are few. That is, the minimum wage and the cost of living in 2021 - both for the country as a whole and for the majority of constituent entities of the Russian Federation - are in a ratio that does not meet the standards proclaimed by labor legislation.

As a rule, the minimum wage is set for a year (not necessarily from its beginning), but can also change at other intervals. In the regions, the frequency depends, first of all, on changes in the federal value of this indicator. In the constituent entities of the Russian Federation that have actually tied the minimum wage to the subsistence level, its value is revised quarterly.

Read about the dynamics of the federal minimum wage here.

Should pensioners count on additional payments?

According to the legislation of the Russian Federation, the cost of living must serve as a certain indicator for calculating all existing benefits in the country, and pension payments are no exception. If a pensioner receives a pension less than the established minimum, he must be paid the difference. However, there are also certain nuances in this issue that not everyone knows about. It turns out that only those people whose level of full social support does not reach the established minimum limit can count on additional payment.

Any social security provided at the regional and federal levels is taken into account. However, the exception is the assistance that regional authorities provide to pensioners in kind. Additional payments are financed by the state or federal budget, but when calculating them, the authorities pay special attention to where the pensioner lives, because representatives of the municipal government must take care of their citizens. Pensioners who live abroad for most of the year (although this happens extremely rarely with a minimum pension) cannot count on additional payments from the government.

By the way, forecasts regarding such a rapid decline in the size of pension benefits were made against the backdrop of the decision to abolish the indexation of material support for those people who work in retirement. There is also information regarding the holding of this event for other categories of citizens, because the latest news about the indexation of the minimum pension in 2021 suggests that it has been decided to carry it out in full, that is, the size of the benefit will be multiplied by the inflation coefficient, and the authorities will cancel indexation in There are no plans for the near future.

Finally, it must be said that today the authorities are planning to change the pension system for future retirees, and the issue of increasing the retirement age is being especially discussed in the press. However, government officials recommend not to worry too much about this, because for now the retirement age for Russians remains the same and no one is going to change it (at least until the country gets out of the crisis).

What determines the cost of living?

How is the cost of living calculated in Russia in 2021? The rules for its determination are enshrined in Law No. 134-FZ (Article 4) and Decree of the Government of the Russian Federation dated January 29, 2013 No. 56.

The calculation should be carried out separately for each of the three main demographic groups of the population (working-age, pensioners, children) and per capita on average, based on:

• on the composition of the consumer basket (for the period until 2021 it was approved by the law “On the consumer basket...” dated December 3, 2012 No. 227-FZ);
• statistical data on changes in the price level for indicators that correspond to the composition of the consumer basket (products, non-food products, services, other obligatory payments).

This calculation is carried out both for the Russian Federation as a whole and for the regions, quarterly, based on the actual figures generated. Results for Russia are summarized, as a rule, in the last month of the quarter following the one being processed. The result is approved by a decree of the Government of the Russian Federation. That is, information on the real cost of living in Russia for 2021 will appear no earlier than June, after the completion of data processing for the 1st quarter.

An exception to this procedure is the establishment of a living wage for pensioners, the value of which determines the amount of social supplements to pensions (federal and regional). Its value is determined by the increase in food prices, and it is introduced annually for the next financial year before its start (clauses 3 and 4 of Article 4 of Law No. 134-FZ), and in the region this figure must be brought to the attention of the Pension Fund no later than 2 months before the start of the year of application.

What is the minimum cost of living for pensioners at the federal level in 2021? Its value (RUB 8,726) is established by the Law “On the Federal Budget...” dated December 5, 2017 No. 362-FZ.

Read about the relationship between pension size and the cost of living here.

Pension for working pensioners in Moscow

Working pensioners will no longer have to wait for indexation. For them, a moratorium on indexing pension payments during employment will be maintained.

• 1 How is a pension formed in Moscow?

• 2 Regional supplement 2.1 Conditions for receiving social supplement from the city budget

• 2.2 Additional payment up to the social standard for non-working pensioners

• 2.3 Payment for working pensioners

• 2.4 How the surcharge is calculated

• 3 Additional payments to certain categories of Muscovites

• 4 How to apply for city surcharges

What will be the relationship between the minimum wage and the cost of living in 2018?

The onset of 2021 was marked by the introduction of a new federal minimum wage (RUB 9,489), which again did not reach the subsistence level. But the same law (“On Amendments...” dated December 28, 2017 No. 421-FZ) established the rule that starting from January 1, 2019, the minimum wage in Russia will be established annually in the amount of the subsistence minimum calculated for the working population for the 2nd quarter of the previous year. And if for the next year of calculation this value turns out to be less than for the previous one, then the minimum wage will not change towards a reduction.

Thus, the rule on the annual revision of the value of the federal minimum wage, linking it to the value of the subsistence level, is enshrined in law.

However, the President of the Russian Federation decided not to wait for January 2021 and signed the law “On Amendments...” dated 03/07/2018 No. 41-FZ, according to which the minimum wage will be equal to the subsistence level as early as 05/01/2018 and will be 11,163 rubles.

See here for details.

Minimum pension in Moscow in 2021. City allowance in Moscow

Moscow Mayor Sergei Sobyanin signed a resolution to raise the city's social standard for pensioners. The standard assumes an increase in the minimum pension by 21% - from 14.5 thousand to 17.5 thousand rubles.

The new social standard will come into force on January 1, 2021 and will cover all non-working pensioners who have lived in Moscow for at least 10 years. According to the head of the Department of Labor and Social Protection of the Population, Vladimir Petrosyan, 1.4 million Muscovites will receive additional payments.

Let us remind you that from January 1, 2021, insurance pensions and fixed payments to them for non-working pensioners will be indexed throughout Russia. The average annual payment will increase by 3.7% and amount to 14.1 thousand rubles.

Results

The cost of living is calculated quarterly based on the real current assessment of indicators reflecting the composition of the consumer basket. The calculation is made both for the Russian Federation as a whole and for the constituent entities, and by breaking down these data into three main demographic groups of the population. One of these groups is represented by people of working age. In accordance with the provisions of the Labor Code of the Russian Federation, the value of the established minimum wage, the task of which is to ensure the minimum level of subsistence of the population, should be linked to the value of the subsistence minimum.

Meanwhile, the minimum wage, despite its systematic growth, regularly turns out to be below the subsistence level.
This situation has not changed with the advent of 2021. However, a date has been established by law (01/01/2019), starting from which the minimum wage will be annually adjusted to the cost of living calculated for the 2nd quarter of the previous year. But an unplanned increase in the minimum wage to the subsistence level is just around the corner - from May 1, 2018. You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

Regional surcharge

Pensioners living in Moscow have the right to receive additional payments to the minimum. However, the size of this minimum depends on the status of a Muscovite and is designated for each category at a different level.

Table 1. Additional payments to the minimum for Muscovites:

Self-study documents

Federal Law N 178-FZ “On State Social Assistance” (06/11/2021)

Federal Law No. 44-FZ “On the procedure for recording income and calculating the average per capita income of a family and the income of a citizen living alone for recognizing them as low-income and providing them with state social assistance” (04/24/2020)

Decree of the Government of the Russian Federation N 512 “On the list of types of income taken into account when calculating the average per capita family income and the income of a citizen living alone to provide them with state social assistance” (09.11.2021)

Federal Law N 134-FZ “On the subsistence minimum in the Russian Federation” (December 29, 2020)

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Payment for working pensioners

Only certain categories of working pensioners, indicated in clause 6 of PP-No. 1005, can receive regional compensation payments in Moscow.

Rice. 3. Preferential categories include workers of retirement age who receive salaries from the budget or occupy unpopular positions in the capital

These include employees:

• libraries (archives);
• organizations of culture and social protection of the population;
• Civil registry offices of the capital in economic and service positions;
• educational and healthcare institutions; physical culture and sports organizations;
• concierges, cleaners, cloakroom attendants, doormen;
• housing and communal services workers;
• working disabled people, regardless of their position.

The amount of compensation paid to a working pensioner is calculated based on the total amount of pension and salary.

There are plenty of other benefits too

In addition to one-time, monthly and annual payments, Moscow pensioners generally receive more benefits than residents of other constituent entities of the Russian Federation.

Here are the most important opportunities that older people living in Moscow have:

• targeted social assistance. It is provided to those who find themselves in a difficult life situation, and can be material, food, or clothing. The city can also help a single pensioner with household services, including installing an air conditioner or replacing a water meter;
• free travel on public transport - it includes all types except taxis (that is, including commuter rail transport);
• free medications prescribed by a doctor;
• social taxi - it can take a pensioner to the right place (hospital, clinic, train station, sanatorium or even a summer house) at reduced rates. A person with a disability can order such a taxi; you can travel up to 250 km from Moscow;
• compensation for a landline telephone – 250 rubles per month;
• subsidy for payment of housing and communal services under special conditions - if in other regions more than 15-22% of income should be spent on utility costs, in Moscow everything over 10% is compensated;
• benefits and discounts in public and private institutions on a Muscovite social card.

But that's not all. In addition to well-known support measures, pensioners in Moscow can also apply for more specific types of assistance.

For example, single people, veterans or disabled people can use the following services:

• psychological help - just call “051” and a professional psychologist will answer the person;
• The social center is a gathering place for older Moscow residents. Among other things, there you can engage in various hobbies, communicate and meet interesting people;
• social house - a person can obtain the right to move to a social house by transferring his apartment to the city. Another option is to bequeath the housing to the city, receiving in return the right to guaranteed care from the patronage service;
• a set of services for single veterans - they can hire a social worker or a nurse, get an almost real “sanatorium at home” or equip their apartment with a “panic button”.

In other words, no matter what difficult situation an elderly Moscow resident finds himself in, he is almost guaranteed not to be forgotten by the state

. Unfortunately, in other regions of Russia, pensioners certainly do not receive such a level of support.

Minimum wage - what is it? Where is it used and who installs it?

To begin with, it is worth noting that the minimum wage is the minimum wage. It is the statutory amount that an employer must pay employees for a full month worked. Moreover, the amount of wages paid can naturally be higher than this value, but in no case lower. This condition is mandatory for all employers, regardless of what form of ownership they belong to. Failure to comply with the requirements established by law entails administrative liability.

At the moment, the minimum wage is 11,163 rubles. It should be noted that the minimum wage indicator not only serves as a guideline for calculating the minimum wage, but is also used in regulating labor relations. After all, the employee may not work a full month. The reason for this may be the presence of sick leave, going on maternity leave, etc. In this case, the calculation of the required earnings must be made in accordance with the provisions of the Labor Law.

Moreover, based on the minimum wage, various social payments are calculated. For example, child benefits, or unemployment.

The minimum wage is set both at the level of the entire country and separately for each region. However, the regional minimum wage should not be lower than the federal one.

As expected, the minimum wage value is proposed by the Government of the Russian Federation, then submitted for discussion to the State Duma, where the corresponding Law is adopted, approved by the Federation Council, and only after that signed by the President.

As for the regional minimum wage, an agreement is signed between the government of the region, territory or republic and the regional association of trade unions of workers and entrepreneurs. The validity period of such a document is three years.

It is worth noting that regional employers have the right to refuse to pay the established “minimum wage”. The entrepreneur must have a reasoned written refusal, and it must be agreed upon with the trade union organization of the enterprise. This letter is sent to the administration of the territory, region, republic within 30 days after the publication of the regional minimum wage in official publications and on the Internet.

It was already mentioned earlier that the minimum wage is established and operates on the basis of regulations. Therefore, it would not be amiss to note this legislative framework.

Thus, according to current legislation, the minimum wage includes:

1. Official salary according to the employee’s qualifications;
2. Compensation payments that allow employees to receive wages at the minimum wage level;
3. Premium payments.

It should be emphasized once again that the wages received must be accrued strictly in accordance with all changes in force from May 1, 2021.

Living wage in 2018: table by region