Vladimir Putin instructed to index state employees’ salaries

President Vladimir Putin spoke about the risk of a "leakage" of personnel from the public sector. In this regard, he instructed to index employees' salaries promptly.

“At the same time, I draw the government's attention: it is necessary to strictly adhere to the established goals for the salaries of specialists in the public sector. Otherwise, there will be a spillover. We understand that people will leave the public sector. Wages need to be indexed promptly,” Vladimir Putin said at a meeting on economic issues. His words are given on the Kremlin website.

The President said that unemployment in Russia had fallen to 3.2%. For the first time since 2018, average salaries showed double-digit growth rates. In April, the growth was more than 10%. “In general, the result is good. It is even higher than expectations and preliminary calculations,” the head of state said.

The Ministry of Economy expects real wage growth to be 5.4% in 2023 and 2.8% each in 2024 and 2025. The agency believes that the growth of real wages will be affected by a slowdown in inflation, low unemployment, and employers' competition for labor.