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The minimum wage and the cost of living: what is the difference, features and interpretation

What is the minimum wage and the cost of living, what is the difference between these concepts? The first designation of the indicated means the salary indicator, which no employer has the right to downplay. This is the minimum salary.

The second concept means the total cost of all the products necessary for normal functioning, non-food goods and services. That is, in short. But this topic is detailed and relevant, so a little more should be said about it.

Minimum wage and cost of living - what is the difference

Minimum wage

Each concept is worth dwelling separately. So it’s better to understand the difference between the minimum wage and the cost of living.

How is this abbreviation deciphered? The minimum wage is the minimum wage. It is established by law. Thanks to the minimum wage indicators, it is possible to regulate wages and determine the size of disability benefits. In addition, this indicator is taken into account when determining fines, fees and taxes.

No employer has the right to set a salary below this threshold. Only if a person combines work with study or is part-time.

The minimum wage in 2018

They became bigger, and it pleases. As of January 1, 2018, the federal minimum wage is 9,489 rubles.

The subjects of the Russian Federation can establish the regional minimum wage on their own. In Moscow, for example, it is equal to 18 742 rubles. In the region - 13,750 rubles. In St. Petersburg - 17,000 rubles. By region, the indicators differ. So, for example, in the Bryansk region for state employees there is a minimum of 9,550 rubles. And for employees of the private sector - 10 615 rubles.

In the Jewish Autonomous Region, the indicator for all is 12,000 rubles. For the Kamchatka Territory, a minimum of 18,360 rubles has been set. And in the Krasnoyarsk minimum wage it is completely different in cities and regions. In the rural settlement of Khatanga, a minimum of 26,376 rubles is established.

In general, however, indicators cannot be lower than 9489 rubles.

The difference between the minimum wage and the cost of living

Living wage

Now you can talk about him. The minimum wage and the cost of living are such concepts that stand side by side. And they are directly related to each other.

The cost of living is, in simple words, the amount that is spent on the acquisition by a person of the products, things and services necessary for an acceptable existence. That is, that which will satisfy the basic cultural and social needs of the individual.

This minimum consists of two elements - from the physiological and social. The first includes material values. They make up about 85-87% of the specified minimum. The second element is a set of spiritual values.

So, it’s pretty clear what the difference is between the minimum wage and the cost of living. What are the numbers? The minimum in all regions is different, and this is logical, because the prices in the country are different. At the moment, this indicator is the least in the Republic of Mordovia - 8,280 rubles. And the highest is observed in the Nenets Autonomous Okrug. There the cost of living is 21 049 rubles.

What is the difference between a minimum wage and a living wage

Convergence of indicators

In accordance with the labor legislation of our country, it is determined that the minimum wage cannot be lower than the subsistence level. However, in fact it was not always so. In 2015, for example, the minimum wage is 5,965 rubles, while the cost of living in the country reached 10,404 rubles. The difference is colossal - as much as 57.3%. Was it possible to survive 5,965 rubles? Not. Therefore, you just had to exist.

But over time, the figures got even.Otherwise, why do we need the minimum wage and the cost of living, if not for their adequate comparison? Therefore, from the next, 2019, a completely different principle will apply in this area. The minimum wage is equal to the cost of living. And this is right, because in this way citizens will receive more social guarantees.

At the moment, the indicators cannot be called equalized. Suppose that from January 1 the minimum wage has increased to 9,489 rubles, it still does not reach the average cost of living in the country. In the second quarter of 2017, it amounted to 11,163 rubles.

Minimum wage and cost of living what is the difference

The role of the living wage

Its consideration should also be given a little attention. What is the difference between the cost of living and the minimum wage - is clear. The "role" of the second indicator is also understandable. And what about the additional functions of the cost of living? They can be distinguished in the following list:

· The minimum reflects the statistics of the standard of living of citizens. These data are taken as the basis for the development and subsequent implementation of various social programs.

· It helps plan federal and regional budgets.

· Justifies the size of the minimum wage, scholarships, social benefits, benefits.

· Facilitates the provision of social support to poor citizens.

Talking about the difference between the minimum wage and the minimum subsistence level, it is important to note that the second indicator, unlike the first, is set separately for different categories of citizens - for pensioners, children and able-bodied people.

Minimum wage and cost of living

How is the cost of living determined?

This is also important to know. The Government of the Russian Federation establishes it taking into account the totality of such factors:

· The composition of the consumer basket. This is a set of goods that characterizes a typical consumed assortment of products and goods by an ordinary citizen. In Russia, it includes 156 items.

· Statistical data on prices for consumer goods, as well as services and food products.

· Price Growth Index.

Taking into account all of the above, benefits, co-payments, subsidies for the payment of utilities, the amount of alimony are determined in the future.

Performance increase

Based on the foregoing, we can understand the difference between the minimum wage and the cost of living. What are the forecasts? When will people be provided with a decent salary, on which it will be possible to live fully?

Now it’s 2018 and it is the last year in the Action Plan of the Ministry of Social Protection and Labor. There is growth, but it is very small. So consider not only citizens of the country, but also trade unions.

If we compare the minimum Russian salary with the indicators of other countries, a sad picture emerges. The Russian Federation, considered a developed state, one of the strongest in the world, is in the third ten. Of course, someone may argue that in other countries higher prices and taxes, but all this is taken into account when compiling the rating. So, citizens of other states, even with a minimum salary, have “free” funds.

Why do we need a minimum wage and a living wage

Salary growth = risk for the country

Yes, such statements also hold. And I would like to talk about them in the end, since it has already been clarified what is the difference between the minimum wage and the cost of living.

According to the Central Bank, in Russia there are not enough personnel. In particular, highly qualified specialists, programmers, teachers and doctors. This refers to one of the factors by which salaries grow faster than productivity. Ostensibly, the growth potential of production decreases, since there is no way to attract the right personnel to work.

Specialists say that wages should grow at a pace consistent with growth in labor productivity. Otherwise, there are pro-inflationary consequences.

If you believe the data of Rosstat, then productivity really grows twice as slow, unlike salaries. But at the same time, only 3% of citizens are satisfied with the salary they receive. And 17% constantly delay payments. In general, the topic is very controversial.But perhaps this is the ambiguous statement that wage growth is a risk to the country, and they are trying to justify the slow increase in the minimum wage.

In any case, it remains to be hoped that in the near future the citizens of Russia will begin to receive a more decent salary, and the cost of living will remain at the same level as the price of living.


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