What is the consequence of a salary increase for state employees

In the state Duma introduced a new bill, which refers to the establishment of the minimum salaries of workers of budgetary sphere not lower than twice the subsistence minimum ( currently the living wage is 11280 rubles per month) . The approximate date the law came into force on 1 January 2020. Most likely, the law will be considered on an expedited basis, after which there will be changes in article 144 of the Labour code of the Russian Federation. The bill was proposed by deputies of the Parliament of the Republic of North Ossetia, innovations will apply to such categories of occupations such as: teacher, doctor, officer of the state and municipal institutions, worker in the field of culture.


The main problem is funding. The authors of the project have not given any data as to how many employees this will affect. It is believed that funds for the project will be taken due to the “increased owing to the progress of the domestic economic situation, growth of the economy and the production sector”. According to analysts, the increase in GDP for next year are 1.3%, these indicators will not be enough to increase the salaries of all state employees Federation.


On October 1, 2019 salaries of Federal civil servants and workers of budgetary sphere are indexed by 4.3%, however, on 1 October 2020, public sector wages will increase another 3.8%. Should add that the indexation will not affect teachers, doctors, employees of cultural institutions, University professors and researchers. This suggests that the increase in wages relative to the subsistence minimum, the Federal budget does not provide.


The main difficulty in the implementation of the law will fall on the shoulders of regional budgets. We remind you that in Russia only 85 donor regions, according to various estimates, from 12 to 14 at the most. The other seven dozen standing with hat in the direction of the Federal Ministry of Finance hand out waiting for donations.

18 November, 2019

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