Putin announced a 10% increase in pensions and the minimum wage from July 1

The government agreed to increase the minimum wage (SMIC), the subsistence minimum and insurance pensions by 10%. Vedomosti writes about this, citing sources close to the government.

The final decision on the increase will be made by the president of Russia, since during the discussion about the level of indexation there were different opinions, one of the interlocutors of Vedomosti emphasized.

Vladimir Putin will announce his decision on the indexation of social benefits at a meeting of the State Council on May 25, presidential aide Maxim Oreshkin said last week.

According to Vedomosti, one of the main reasons for the unscheduled indexation of social support is rising inflation due to the consequences of sanctions.

The indexation of the minimum wage by 10% generally corresponds to the task of compensating for the negative consequences of sanctions, believes Elena Grishina, head of the laboratory for research on labor markets and pension systems at the Institute for Social Analysis and Forecasting of the RANEPA. At the same time, by the end of the year, the situation may change significantly, which may require additional indexation, she clarified.

Updated at 17:50. Russian President Vladimir Putin announced a 10% increase in pensions for non-working pensioners and the minimum wage from July 1. He also ordered to increase payments to participants in hostilities in Ukraine.

(C)MEDUZA 2022

2 comments

  1. “The indexation of the minimum wage by 10% generally corresponds to the task of compensating for the negative consequences of sanctions…”

    This is rate increase falls short compared to the inflation rate in mafia land, which is currently almost 17%. Core inflation is nearly 19% and food inflation is at 18%. These are official figures, and the true scale of inflation could be much higher.

    Liked by 1 person

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