The minimum wage is rising faster than potato prices, and thanks for that.: Kogan - about the new minimum wage

16:40; 08 January 2025 year

Starting from January 1, 2025, the minimum wage is 22,440 rubles. This will increase the salaries of 4.2 million workers, mainly in the public sector. However, the minimum wage does not only affect this. Economist Evgeny Kogan explained why the minimum wage is important in the economy.

So, the minimum wage primarily affects wages.An employer cannot pay an employee an amount below the minimum wage for a month of full-shift work. At the same time, the minimum wage shows the amount before personal income tax is paid, that is, the employee will receive 13% less on his hands. An employer has the right to pay an employee less than the minimum wage if he works part-time or part-time.

The minimum wage depends on the amount of maternity benefits, child care for up to one and a half years, the amount of sick leave and other payments. If an employee works a part-time shift and his salary is lower than the minimum wage, then the established minimum wage will still be taken into account when calculating the allowance.

Representatives of small and medium-sized businesses pay contributions at a rate of 30% from a salary of 1.5 minimum wage and at a rate of 15% from payments above this indicator.

The minimum wage also affects the amount of taxes that the government collects from employers, including small businesses and entrepreneurs. 13% of the minimum wage replenishes the coffers of the regions.

- In short, this is a very important parameter in our economy.

And finally:

As of January 1, 2015, the minimum wage in Russia was 5,965 rubles per month.
▪️2020 — 12 130 rubles.
▪️2023 - 16 242 rubles.

It is interesting that the average annual inflation during this period was about 6.32%. According to Rosstat, of course.

At the same time, in 2015, the average retail price for potatoes in Russia was about 19.73 rubles per kilogram. Between 2015 and 2024, it increased by about 2.9 times.

Well, the minimum wage is rising faster than the price of potatoes. As they say, thank you for that," concluded economist Evgeny Kogan in his telegram channel.

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