1.3 million Russians on minimum wage, far below poverty line

Published time: November 27, 2012 14:11
Edited time: November 27, 2012 18:11
(RIA Novosti / Aleksandr Kondratuk)

Over a million Russians get a monthly wage of $148, most of them from the public sector, well below the $220 poverty line.

­650,000 Russians out of 1.3 million living on the minimum wage work in the public sector, according to the country's Public Health and Social Development Ministry. The minimum wage is the lowest monthly wage employers may legally pay workers. It will be increased next year by 13% to 170 dollars a month, less than the minimum cost of living. According to the Russian statistics agency Rosstat 12.5% of Russians live below the poverty line.

The minimum wage in Russia is much lower than in developed countries, the auditor FBK reports. According to its rating, Luxembourg, Netherlands and Belgium top the list with a minimum wage of over $1500 a month. Last in line is Kyrgyzstan where minimum wage is the equivalent of $24 a month.

"In Russia, the minimum wage does not guarantee a decent standard of living for low-paid workers," Anna Bolsheva from the Global Labour University told Expert magazine.

According to the Center for Labor Studies there are almost no private companies that pay salaries at the level of the minimum wage.

"95% of cases are municipal enterprises related to education, science, health, etc.," Anna Lukyanova from the Center for Labor Studies says. 

The European standard for the minimum wage equates to earnings which are at least 60% of the average salary in the country, experts say. On the basis of these calculations, the minimum wage in the Russian Federation should be $515 a month.

Comments (29)

Brewtowner (unregistered) 10.12.2012 03:48

   No Comparison (unregistered) wrote in #8 TO:No Comparison (unregistered) wrote in #6 The shame of it all is that the country is awash with so much cash but the money and wealth are in few hands.  -------- -------Then it seems what you are promoting is the Russian gov't re-allocating some of this "cash" toward working-class Union wage jobs building massive infrastructure projects like bridges, rail, pipelines and such.Or is there no Russian entrepreneurial class to provide services to these gov't workers along the way?If that is not the case, then perhaps Alaska is the place to start, and invite the American entrepreneurs into Russia to show you'all how it's done.Please define "looting" as I'm unable to understand the concept.To me, a "looter" is an African-American breaking into a store to steal a TV set, after a massive power outage or natural disaster. Why did you have to get racial? The word "looting" can apply to almost any crime including theft on Wall Street, and embezzlement of government funds by oligarchs & politicians. However, you couldn't control your bigotry, so what popped into your mind was some poor black person stealing some television. You sound like an apologist for the elites running Russia today. Then again, with your kind of language, you probably are an elite. And you're wrong if you think a few entrepreneurs are going to solve Russia's economic problems...that's why the country has the problems it has now because a few opportunists & entrepreneurs took advantage of the people & resources of their country. And yes, more working class living wage jobs would be good for Russia. What's the alternative? More poverty and desparation. Seems like you're just asking for another Bolshevik revolution

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1voice 30.11.2012 02:13

I'm surprised to see RT publishing an article that shows Putin's regime or Russia at all in a bad light.  However, 1.3 million isn't too bad.  It still needs to be fixed though. 
Keep up the balanced reporting RT! It is much appreciated.

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No Comparison (unregistered) 29.11.2012 00:25

TO:No Comparison (unregistered) wrote in #6 The shame of it all is that the country is awash with so much cash but the money and wealth are in few hands.  -------- -------Then it seems what you are promoting is the Russian gov't re-allocating some of this "cash" toward working-class Union wage jobs building massive infrastructure projects like bridges, rail, pipelines and such.Or is there no Russian entrepreneurial class to provide services to these gov't workers along the way?If that is not the case, then perhaps Alaska is the place to start, and invite the American entrepreneurs into Russia to show you'all how it's done.Please define "looting" as I'm unable to understand the concept.To me, a "looter" is an African-American breaking into a store to steal a TV set, after a massive power outage or natural disaster.

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