The cost of living is directly related to the size of the minimum wage. The regional authorities approved the subsistence level for the third quarter of 2018. After the update, the indicator slightly decreased, but this did not affect the volume of the state guarantee. For 2019, the indicator that was approved for the third quarter of 2018 remains valid.
Currently, Russia has a large number of programs and measures aimed at supporting low-income citizens. But in order to implement such events, first of all, it is necessary to determine who belongs to the poor. There are several specially designed counting methods.
The method of calculating the cost of living allows you to accurately determine the circle of people in need of help. The indicated equivalent was introduced at the beginning of 1998.
The cost of living is calculated simultaneously in two directions: at the federal and regional levels.
general information
The cost of living in Russia, as already noted, is the main criterion for determining the circle of people who need the help of the state. In fact, this is a monetary value, which has a certain size, and with which the monthly income of individuals in the country is compared.
Each person has the right to receive social support if his income is less than the cost equivalent in question.
The concept of a living wage
The cost of living is the monetary value, which is defined by law and is necessary in order for a person to lead a satisfactory standard of living.
It should be noted that the value of the subsistence minimum is determined taking into account many factors. In addition, this indicator is different for different segments of the population.
Factors taken into account in the calculation
To calculate the cost of living, in Russia apply:
- The value of the consumer basket for a middle-class resident.
- Information received from local authorities, which is statistics on price changes.
- Tax and other fees.
It is worth noting that the total cost of the consumer basket includes payment for services required for each citizen of the country: housing and communal services, transport, etc. The question often arises as to whether income tax is included in the cost of living. The answer to this question is positive, because personal income tax is an integral part of the value equivalent. It is important to note that a person’s right to receive social benefits disappears if his average salary exceeds the cost of living even by 1 ruble.
Who are regulated
The indicators forming a living wage, as well as the procedures for its calculation are regulated by the legislation of the country. The cost value is separately determined for each of the social groups, taking into account their needs.
In Russia, the cost indicator is determined for three social groups: minor children, people who have reached retirement age and the able-bodied part of the population.
In real terms, the cost of living in the Moscow region per child, as for other social groups, is the amount that a person needs to live on the verge of poverty. The state provides social support to just such segments of the population.
Who sets the cost of living and why?
The cost of living is the amount that is approved by regulatory enactments, and which is required in order to provide adequate living conditions for a person in a certain territory of the country. Thus, the subsistence level in the Moscow Region for child allowances, benefits for people receiving a pension and working citizens is set at the regional level.
The subsistence minimum is calculated based on the dynamics of rising prices for goods, products and services included in the conditional basket of the consumer (household chemicals, shoes, clothing, transport, utilities). The consumption rate is determined by the federal center and regional authorities. The subjects of the country also take into account the preferences of the population, consumer needs, and climatic features of the territory.
Given the size of the living wage, the calculation is carried out:
- Subsidies to pay for utilities.
- Cash assistance and subsidies to the needy and the poor.
- The size of monthly allowances for children.
The indicator is reviewed once a quarter, analyzing the results of the previous quarter. The subsistence minimum established in the Moscow region was determined at the end of the previous year, and began to operate on January 1, 2019.
For the third quarter of last year, the average per capita minimum wage in the Moscow Region amounted to 12181 rubles, which is 48 rubles less than the previous period. The subsistence minimum is regulated by 942/43-PP.
The values for the main groups are as follows:
- The subsistence minimum per child in the Moscow Region is 11925 rubles, which is 132 rubles less than the previous period.
- For pensioners - 9100 rubles (the value decreased by 37 rubles).
- For workers - 13,496 rubles (the value decreased by 32 rubles).
It is worth noting that the cost of living in the Moscow region exceeds that for people living in other entities. Thus, the average living wage in the country is 10302, 8615, 11310 rubles for children, pensioners and workers, respectively.
In determining the cost of living in the Moscow Region (per child, pensioner, and working citizen), the authorities are guided by the following federal and regional regulations: 134-ФЗ, 13/98-ОЗ, 28/2013-ОЗ, 518/29-ПП.
In accordance with regional legislation, the calculation of social payments should be made taking into account the largest cost of living determined for a particular region.
Surcharges for pensioners
It should be noted that the cost of living also affects pensions in the Moscow region, since for pensioners it is established not only at the federal, but also at the regional level. Pension benefits up to this amount are due to those pensioners who live in the territory where the minimum subsistence level is established in comparison with the average for Russia.
The premium is charged if two conditions are met:
- A pensioner does not continue his career.
- The total income (benefits, social benefits, pension) is less than the subsistence level established in the region.
The regional cost of living in the Moscow region, as in other entities, is taken into account only if this indicator exceeds the federal one. Such regions include the suburbs. In accordance with 180/2018-OZ for the Moscow Region, the amount of the subsistence minimum for a pensioner in the Moscow Region in 2019 is 9908 rubles, which is 4% higher than last year.
Minimum wage and cost of living
The cost of living is directly related to the size of the minimum wage. In accordance with labor legislation, the minimum wage for people of working age must exceed the cost of living. Since the adoption of the Labor Code of the Russian Federation, this norm was first implemented only in 2018.
The minimum wage, which is established at the federal level, at the beginning of 2019 amounted to 11280 rubles, which is 1.6% more than the cost of living in the Moscow Region per child.
The monthly accrued salary of a budget employee who has fulfilled his labor duties in full should not be less than this amount. It is worth noting that the earnings that a citizen receives on his hands may be less than the minimum wage, since it includes:
- Prizes.
- Allowances.
- Worker's salary before deduction of assessed contributions and income tax.
Adjustment
It is important that in the future the minimum wage will be adjusted once a year. In cases where the valuation of the consumer basket is carried out and the cost of living is reduced, the minimum wage remains at the same level. If the dynamics is the opposite, then produce an increase.
The minimum salary in the suburbs
Since the beginning of this year, minimum wages have increased, depending on federal laws. The minimum wage in a particular subject may vary, but exclusively in a big way.
What is the cost of living per child in the Moscow region?
The minimum wage, in addition to regulating wages, is used in the following cases:
- Calculation of the amount of tax fees, fines.
- Determining the amount of benefits due in connection with temporary disability, pregnancy and childbirth.
Organizations and enterprises that are financed from the funds provided by the state budget are required to adhere to the minimum wage, adopted at the federal level. In other cases, the regional minimum wage level is established - it cannot be lower than the federal level. Its size is fixed by an agreement signed by representatives of:
- Trade unions.
- Employers.
- Regional authorities.
Such a document is valid until the next one is signed.
In accordance with a similar agreement, the level of minimum costs in 2019 in the Moscow region is also determined. The document was signed by the association of employers of the region, the union of trade union organizations of the region and the government. He establishes that in the Moscow region the minimum wage is 14,200 rubles, while the cost of living in the Moscow region per child is 11097 rubles per month, for a pensioner - 9908 rubles, for working citizens - 13496 rubles.