Izvestia: Russia may double the minimum wage by 2030

The minimum wage (SMW) in Russia may double by 2030 compared to 2023. About this write “Izvestia” with reference to the bill of the Ministry of Labor.

As follows from the document, from January 1, 2024, the minimum wage will increase to 19,242 rubles. Today it is 16,242 rubles.

According to the Central Economics and Mathematics Institute (CEMI RAS), it will take about 2.4 trillion rubles to double the minimum wage by 2030. The amount can be accumulated through progressive taxation and funds from the National Wealth Fund of Russia, they noted. The CEMI RAS added that such a measure would not only reduce the level of poverty in the country, but also, with the growth of consumer demand, would stimulate an increase in GDP by an additional 0.8 percentage points.

Albert Bakhtizin, director of the institute, said that “to compensate for the lost revenues to the budget” is possible due to “more fair taxation of the rich part of the population” at a personal income tax rate of 30-40%. For citizens earning less than 20,000 rubles. per month, he proposed to cancel this tax.

During a speech at the plenary session SPIEF Russian President Vladimir Putin announced an increase in the minimum wage by 18.5%, to 19,242 rubles, from January 1, 2024. He noted that in this way the indicator will outpace inflation and wage growth. At the same time, the head of state admitted that by 2030 the minimum wage could double in nominal terms, which would become an additional incentive for wage growth in all regions of Russia.