A living wage is the minimum allowable income level that is necessary for a person’s livelihood. In each city, depending on the local price level, a living wage is calculated. The value of this indicator may change after the state allocation.
Where do the numbers come from?
The cost of living is calculated on the basis of the mandatory costs of the minimum set of products, as well as the cost of goods and services that are necessary for human existence. This is a clearly established amount that should be enough for a normal and healthy life of a Russian. It is believed that a citizen receiving an income whose amount exceeds the established subsistence minimum, leads a life above the poverty line.
What is included in the concept of "living wage"
The cost of living is divided into:
- Conditional consumer basket - it includes products necessary for human existence and non-food products, which account for half of the cost of products. In Russia, the list of obligatory products includes: potatoes, cereals, bakery products, meat, fruits, vegetables and greens.
- Mandatory payment - it consists of the percentage payment of direct tax to the state by the working population of the country. This item does not include salary payments, as the employer agrees to take them under the laws of the country.
- Services - this includes payment for the services necessary for a person to live comfortably. These are utility bills, telephone expenses, etc.
The exact amount is calculated for each region, for example, the cost of living in the Sverdlovsk region and in Moscow is different. This amount is also separately determined for different groups of the population, for example, able-bodied, children, pensioners.
It is generally believed that the least funds for a normal life are required for the elderly in our country.
Cost of living in the Sverdlovsk region
Sverdlovsk region is a large area located in the Urals. In this region, both industry and other various sectors of the economy are developed. The correct calculation of the cost of living in the Sverdlovsk region, as in any other, directly affects the welfare and standard of living of the poor.
The cost of living indicators in the Sverdlovsk region are presented below:
Region Per capita For the able-bodied population For seniors For kids Government Decree Sverdlovsk region 10031 10708 8291 10332 No. 59-PP dated 02/09/18
Specialized bodies determine the exact amount, focusing on inflation, as well as the economic and political situation in the country.