Expert: "The real living wage in the country is 2-3 times higher than the official one"

As you know, starting in 2021, the cost of living across the country and regions is calculated according to new rules. This law was signed by Putin at the end of December. If earlier the cost of living was calculated according to the indicators of the consumer basket, then from 2021 it is determined as a part of the average per capita income of citizens. From January 1, 2021, it is equal to 11 653 rubles, for the working-age population - 12 702 rubles, for children - 11 303 rubles, for pensioners - 10 022 rubles.

But even with these changes, the plight of many of the country's citizens is unlikely to change. And that's why. Interesting calculations showing that the salaries of most Russians do not even compensate for the reproduction of the labor force (normal food, rest, medicine, raising at least one child, etc.), is given by Olga Menshikova, an employee of the All-Russian Research Institute of Labor of the Ministry of Labor and Social Protection of the Russian Federation in the magazine "World of New Economy", No. 3, 2020. Channel "Interpreter" quotes excerpts from this article:

“The ratio of the average wage (AW) and the subsistence minimum (LW) of the working-age population characterizes an important socio-economic aspect of the reproduction of the labor force, since the quantitative value of the indicator denotes the“ corridor of opportunities ”that an employee has to carry out the process of reproduction of the labor force.

In this regard, it should be recalled that the real cost of living in Russia is much higher than the officially established one. And if we talk about the approximation of the level of the subsistence minimum to modern realities, then it should include the costs of housing and access to telecommunications and information resources, revise the standards for clothing, etc. Even a rough estimate of all this shows that it should be increased by at least 2 , 5-3 times (i.e. the subsistence minimum should be 25-30 thousand per one Russian).

Based on this, it can be assumed that if the average wage exceeds the subsistence minimum of the working-age population by less than 2 times, this can allow the employee to only drag out a miserable existence at the level of satisfying only his own physiological needs. If the indicator is 2 to 3 times, this somewhat expands the so-called "corridor of opportunities" and potentially contains some resource at least for simple reproduction of the labor force at the minimum level. But the quality of working life with such an average wage should still be considered low.

And only when the ratio of FWP and PM is 3-5 times, it is possible to speak about the presence of some socially justified economic resource for the implementation of simple reproduction of the labor force, which implies the birth and upbringing of at least one child in the future. However, this resource is also very modest and, because of this, it can indirectly testify only to the average statistical (again by Russian standards) quality of working life.

And only if the ratio of the NWP and PM is more than 5 times can the necessary “start-up capital” be created for the expanded reproduction of the labor force”.

This means that if we take the cost of living even 25 thousand rubles and multiply it by 5, we will receive a salary of 125 thousand rubles, or about 1400 euros, which can be an average living in Russia, - comments the expert of "Tolkovatel".