The cost expression of food and services necessary for a person to maintain a minimum standard of living is expressed in such a value as the subsistence level. In St. Petersburg, from May 1, 2018, as in the rest of Russia, the federal minimum wage was equalized with the national subsistence level. The city authorities have so far established the regional PM only for the 2nd quarter.
We will tell you in more detail what the living wage is set in St. Petersburg from May 1, 2021. In St. Petersburg, as well as in a number of economically developed regions, the PM value is slightly higher than at the federal level.
In St. Petersburg and throughout Russia
PM is a fairly approximate indicator. However, it is precisely this that serves as the basis on which the minimum wage is approved, as well as a number of socially significant payments. In some cases, it is used to calculate child benefits, scholarships, payments to pensioners and disabled people, maternity pay, vacation pay, sick leave, etc.
In accordance with the provisions of Law No. 134-FZ of October 24, 1997, the PM is established per capita, as well as for 3 socio-demographic groups:
- working citizen;
- pensioner;
- child.
To calculate it, the cost of the consumer basket is used. As a standard, it includes a minimum set of food products. The second half of its cost is distributed among manufactured goods, obligatory payments, medicines and services necessary for every person.
At the same time, the basket in the Russian Federation is frozen from 2012 to 2021 by law - its composition does not change. It is noted that the current basket has many shortcomings: the quantity and quality of products lags significantly, for example, from the standards in force in the USSR.
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Now the living wage is the price of a minimum set of food products, non-food products and services necessary for human health and livelihoods, taking into account mandatory payments. From January 1, 2021, it is considered to be 44.2% of average per capita income. Also, the cost of living is now set not quarterly, but once a year, and it will not change downward.
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According to Artem Golubev, associate professor of the Department of Economics at the North-West Institute of National Economy and Public Administration, Candidate of Economic Sciences, 13 thousand rubles is not enough for a full life in St. Petersburg. When calculating the final amount, officials proceed from the minimum physiological needs of a person. Basically, we are talking about food products, and simple carbohydrates are often included in the consumer basket. Also, St. Petersburg residents have high travel costs, and for utilities, vegetables and fruits that do not grow in the region, they have to pay a decent amount.
According to a document published on Monday in the anti-corruption assessment section of the St. Petersburg government website, the proposed cost of living per capita is 11,910 rubles (257 rubles higher than the federal level), for the working population - 13,073 rubles, for children - 11,607 rubles, for pensioners - 10,280 rubles.
Previously, the cost of living was calculated based on the cost of products included in the consumer basket. Now it depends on the median per capita income. As of this year, this ratio is 44.2%.
Based on the level of the subsistence minimum, the sum of the entire range of government support measures is determined. For example, it is used when calculating benefits for a child under three years of age or for payments for children from three to seven years old from low-income families.
The authorities of St. Petersburg have determined the cost of living for 2021 for the working population. It will be 13,073 rubles. This was announced on Monday, February 15, in a draft resolution of the city government.
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Earlier, Prime Minister Mikhail Mishustin approved a living wage in Russia for 2021. For the working population, the figure was 12,702 rubles, per capita - 11,653 rubles, for children - 11,303 rubles, for pensioners - 10,022 rubles.
The current minimum for the previous period was not characterized by active growth, but a sharper increase was planned for this year. This is due to rising prices for products included in the food basket, as well as other non-food products and increased utility tariffs.
- on average per 1 citizen – 11,212 rubles. ;
- working-age population – 12,151 rubles. ;
- pensioners of the Leningrad region - 9,550 rubles. ;
- children – 10,790 rub .
Minimum living wage in St. Petersburg in 2021
To establish such an important indicator as PM, the following regulations are applied:
- Federal Law “On the subsistence minimum in the Russian Federation”. In the regions, including in the northern capital, the value may exceed the PM established at the federal level, but cannot fall below its threshold.
- Law of St. Petersburg “On the consumer basket for the main socio-demographic groups of the population” No. 761-135 dated December 25, 2013.
- Decree of the Government of St. Petersburg “On establishing the minimum subsistence level per capita and for the main socio-demographic groups of the population” No. 479 dated March 30, 2004.
Quarterly, by Decree of the Government of St. Petersburg (the act is usually issued much later than the end of the quarter for which the PM is approved), the living wage in St. Petersburg is established. In 2021, from May 1, 2021, the value for the 2nd quarter is valid. The value was established by Decree of the Government of St. Petersburg No. 690 dated August 28, 2018.
In accordance with the document, the PM is established:
- per capita - 11,007.6 rubles.
- for the working population - 12,063.8 rubles.
- for pensioners - 8,944.3 rubles.
- for children - 10,741.7 rubles.
Here are the values in effect for the 1st quarter of 2021 (Resolution No. 390 of May 18, 2018):
- per capita - 10,862.1 rub.
- for the working population - 11,903.1 rubles.
- for pensioners - 8,831.3 rubles.
- for children - 10,594.4 rubles.
For comparison, for the 3rd quarter of 2021, the average per capita figure was RUB 10,791.60.
Current values in the 3rd quarter for St. Petersburg
The new law will come into force on January 1, 2021, but what the cost of living will be in St. Petersburg in 2021 from January 1 is not yet reliably known. The bill provides only the calculation procedure (without specific methods); figures by region are not indicated. Therefore, the latest current indicator is for the 3rd quarter of 2020.
What is a living wage and how is it determined?
- accepted as a percentage of the federal;
- the percentage is set by the Government;
- until 2025 it is necessary to ensure the application of this approach;
- in 2021, the PM cannot be lower than the PM for the region for the 2nd quarter of 2020.
Starting from 2021, the procedure for calculating two important social indicators at once will change significantly: the subsistence minimum (or abbreviated PM) and the minimum earnings of a citizen of the Russian Federation (MROT). For St. Petersburg, these indicators are approved by the city Government. Therefore, information about what the PM and minimum wage will be in 2021 in St. Petersburg should be sought in regional regulations. In 2021, the procedure for their adoption should be revised.
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How does the cost of living affect the minimum wage?
The main news of this year is that the minimum wage was equalized to the subsistence level by 100% as part of the implementation of the provisions of 41-FZ of March 7, 2018. Back in January, taking into account the increase, the percentage of compliance with the indicators was 85. Although the Labor Code in Art. 133 and previously contained a rule on their complete coincidence; it was implemented only from May 1, 2021.
The law provides for an annual increase in the minimum wage depending on the cost of living for the 2nd quarter of the previous year. It is noteworthy that when the monthly minimum is reduced, the size of the “minimum wage” does not decrease, but remains at the fixed amount.
Therefore, the minimum wage, which at the state level amounted to 11,163 rubles from May 1, is equal to the federal minimum wage established for the 2nd quarter of 2017.
In St. Petersburg, the minimum wage increased to 17,000 rubles. based on the Regional Agreement dated September 20, 2017. But this rule did not apply to public sector workers, whose wages are calculated according to state standards and the federal minimum wage. Their financial situation has actually improved since May 1st.
In fact, the minimum wage still remains below the minimum wage. This is due to the fact that 11,163 rubles are paid to the employee, since 13% is withheld in the form of income tax.
A truly significant value is the subsistence minimum for receiving child benefits. The amount of average per capita family income is calculated, and if it turns out to be less than one and a half times the minimum monthly wage established for the 2nd quarter of the previous year, applicants have the right to a benefit for the first-born or to monthly payments from maternity capital for the second child.
Law on increasing the minimum wage from May 1, 2021
Living wage: what is different about the new approval procedure
- The basis of calculation is not the cost of a set of products and services necessary for life (the consumer basket), but the average per capita income. Previously, the PM was actually determined based on prices for the consumer basket over the past period; now it will be set for a year in advance;
- The frequency of approval of the indicator has been changed, now it is determined not quarterly, but annually (previously, only PM for pensioners was approved for a year in order to comply with the norms of Federal Law-178).
Current indicators
So far, only PM has been introduced in St. Petersburg for the 3rd quarter of last year. Therefore, it is valid if the indicators are not less than the 2nd quarter of 2021. The fact is that Federal Law 473 specifically states that the minimum wage for 2021 cannot be less than the cost of living for this period (2nd quarter of 2021).
The minimum wage is established simultaneously throughout the entire territory of the Russian Federation by federal law, and in the constituent entities a regional minimum wage may be established that does not apply to organizations financed from the federal budget.
The minimum wage is the minimum wage. An employer does not have the right to pay full-time employees a salary below the minimum wage, according to Art. 133 Labor Code of the Russian Federation. If an employee works part-time or part-time, the salary may be lower than the minimum wage.
How is the cost of living calculated in St. Petersburg
The ratio of the cost of living per capita in the Russian Federation as a whole and the median per capita income for the previous year is set at 44.2 percent from 2021. This proportion must be updated at least once every five years.
For the working population, this amount will be 13,073 rubles, for pensioners - 9,664 rubles, and for children - 11,607 rubles. When assessing the standard of living of St. Petersburg residents, the authorities will rely on these figures. Also, the amount of scholarships, benefits and other social benefits will be determined based on the cost of living.
The basis for calculating the cost of living is not the cost of the consumer basket for the past period, but the average per capita income. In addition, now the cost of living will not be recalculated quarterly. It is set for the entire next year.
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The living wage for the working population of St. Petersburg in 2021 will be 13,073 rubles 80 kopecks, for pensioners - 10,280 rubles 30 kopecks, for children - 11,607 rubles 50 kopecks. This is higher than the federal level previously established by the Russian government - 11,653 rubles per capita, 12,702 rubles for able-bodied people, 11,303 rubles for children and 10,022 rubles for pensioners.
What will be the cost of living in St. Petersburg in 2019?
It is difficult to predict exact numbers, but there is an obvious trend towards an increase, albeit a slight one. For example, the cost of living for a pensioner from May 1, 2021 in St. Petersburg (for 1 quarter) is 8,831.3 rubles. A year ago, for the 1st quarter of 2021, this figure was 8,475 rubles. 50 kopecks. Growth – 4%.
Increase in the minimum wage from January 1, 2021 in Russia?
Various legislative initiatives that may affect the composition of the consumer basket are also discussed. The Ministry of Labor of the Russian Federation advocated its change.
In addition, in July, the Ministry of Labor developed a draft order that would approve the federal PM for the 2nd quarter with an increase in amounts by 4%. On average, the minimum will be 10,444 rubles, for workers - 11,280, pensioners - 8,583, minors - 10,390 rubles.
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Living wage and minimum wage
The cost of living is the main guideline when determining the minimum wage. Since 2002, the Labor Code of the Russian Federation has required that the minimum wage be no less than the subsistence level of a working person. Meanwhile, in many regions the first indicator still lags behind the second.
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Federal Law No. 421-FZ, adopted in December 2017, is intended to equalize the minimum wage and the cost of living. According to the document, the gap between them will be closed in two stages:
- in the first (in January 2021), the national minimum wage reached 85% of the subsistence level - 9,479 rubles;
- in the final year (beginning of 2019), the minimum wage will be equal to the subsistence level of the working-age population for the second quarter of the previous year (11,163 rubles).
The latest news gives reason to believe that the goal will be achieved as early as May 2021. The opportunity to bring the minimum wage indicator into compliance with the requirements of the Labor Code of the Russian Federation by this deadline was allowed by Russian President Vladimir Putin.
At the same time, in some regions the regional minimum wage is already significantly higher than the federal one, for example, in St. Petersburg, from January 1, 2018, the minimum wage exceeded the previous value by 1,000 rubles and amounted to 17,000 rubles.