A new minimum monthly wage is coming into effect in Moscow
Legal Digest \ 15.11.2018

A new minimum monthly wage of RUB 18,781 (it was previously RUB 18,742) is coming into effect starting from 1 November.

The reason behind the increase of the minimum monthly wage is the growth of the minimum subsistence level for 2Q 2018, as approved by the Moscow Government. This means that Moscow employers may not pay a lesser wage starting from 1 November 2018.

If it pays a wage below the minimum monthly wage, an employer can be subjected to administrative and criminal liability under article 5.27 of the Russian Code of Administrative Offenses. The company, however, may withdraw from applying the regional minimum monthly wage by sending a grounded refusal to the Committee for Labour and Employment within 30 calendar days after the trilateral agreement for the regional minimum monthly wage is published.

We advise that the regional minimum monthly wage does not affect allowances, for these are calculated based on the federal rate. No changes in the federal minimum monthly wage are planned until 2019. We also remind you that Russian constituent entities may independently set a regional minimum monthly wage; this cannot be lower than the federal level of RUB 11,163.

If you need to bring your employment agreements in compliance with Russian legislation, please contact the HR record management department at Acsour.