The minimum monthly wage for 2020 has been approved

LEGAL DIGEST \ 20.09.2019

The Ministry of Labour (the “Labour Ministry”) has approved the new subsistence level which provides for an increase of the minimum monthly wage in 2020. Starting from 2020, it will grow by 7.5% to amount to RUB 12,130.

Every year, the Labour Ministry revises the minimum monthly wage which should be equal to the subsistence level of the working population across Russia for the second quarter of the previous year. If the subsistence level is lower than that of the previous year, the figure will remain at the same level.

Please be reminded that the federal minimum monthly wage is used to estimate allowances for temporary disability in the following cases:

• if an employee does not have any salary or his/her salary is below the minimum monthly wage in the reference base period;
• if the employee’s length of service is less than 6 months;
• if the employee did not follow a prescribed treatment and the physician made a note in his/her sick leave to that effect;
• if the employee’s injury or disease was due to him/her being intoxicated through alcohol.

At present, the following amounts of minimum monthly wages have been established for regions:

• for St Petersburg – RUB 18,000;
• for Moscow – RUB 19,351.

Acsour monitors changes to minimum monthly wages and advises you of the need to adjust your HR records.