Minimum wage will be increased since July 1 - Labour Ministry of Bashkiria

UFA, 26 October 2016. /Bashinform News Agency, Galina Bakhshieva/. The Russian Ministry of Labour has prepared a draft law "On Amendments to Article 1 of the Federal Law "On the Minimum Wage". According to the document, it is proposed to increase the minimum wage in the country by four percent (the forecast rate of inflation) since 1 July 2017. The minimum wage size will be 7800 rubles.

Increasing the minimum wage in the next year will affect 0.89 million Russians. Of these, 72 percent are public sector employees.

"Raising the minimum wage will increase the payment of insurance contributions to state extra-budgetary funds, increase the effective demand for domestically produced goods and will help to reduce the volume of "cash-in-hand" wages", said the Minister of Labour and Social Protection of Russia Maxim Topilin.

According to him, the further terms and amount of the minimum wage increase will be discussed by the parties of social partnership during consultations, as envisaged by the General Agreement between the All-Russian associations of trade unions, All-Russian employers’ associations and the Government RF.

The last time the minimum wage was increased on July 1, 2016. Then, the minimum wage was increased by 21 percent - to 7,500 rubles, according to the website of Ministry of Labour of Bashkortostan.