Change in Average Salary for Russians Starting September Revealed
The Russian government has announced new regulations for calculating average wages, effective from September 1, 2025. These regulations aim to bring clarity and fairness to wage-related calculations, benefiting employees by including more comprehensive payment components and ensuring minimum wage compliance.
One of the key changes in the new regulations is the inclusion of bonuses and monetary incentives in the average wage calculation. This means that all types of payments stipulated by the employer’s remuneration policy, such as bonuses, sales commissions, monetary incentives, base salary, additional pay for combined duties, night shifts, and public holidays, will now be included in the average wage calculation.
Severance pay calculations have also been streamlined. The new regulations dictate that severance pay will be calculated by multiplying the average daily earnings by the average number of working days in a month (annual working days divided by 12). For employees with summarized working time schedules, the calculation uses the average hourly earnings multiplied by the average monthly working hours.
Paid vacations and compensation for unused leave have also seen changes. Paid and unpaid leave periods, including paid vacations, are excluded from the calculation period of average wages. Only the time actually worked during the year counts towards the average wage calculation. Additionally, employers must ensure that calculated averages for severance and vacation pay are not less than the federal minimum wage of 22,440 rubles (2025). If calculated amounts are lower, the employer must pay the difference.
The new regulations also apply a uniform 12-calendar-month period for calculation, replacing arbitrary periods and potentially reducing manipulation of averages.
Here is a summary of the new regulations:
| Aspect | New Regulation Details | |------------------------------|-----------------------------------------------------------------------------------------------------------------------------| | Bonuses and Incentives | Included in average wage calculation alongside base salary and other payments | | Severance Pay | Calculated as average daily earnings × average monthly working days; for summarized schedules use hourly earnings formula | | Paid Vacations | Paid leave excluded from calculation period; only actual worked time considered | | Compensation for Unused Leave | Must ensure that payments do not fall below the federal minimum wage; employer pays difference if calculated amount is lower |
Yaroslav Nilov, the head of the State Duma committee on labor, social policy, and veterans' affairs, reportedly stated that one of the advantages of the new regulations is the abolition of all previously existing normative acts in this field. The new regulations will replace all old rules with modern, relevant ones, effective from September 1, 2025, and will be valid until September 1, 2031.
The previous edition of the regulations on the peculiarities of calculating average wages was in effect since 2007. The new regulations do not include any exceptions for the calculation of average wages for summed working time, bonuses and monetary incentives in the average wage calculation, or paid vacations and compensation for unused leave.
These new regulations aim to improve clarity and fairness in wage-related calculations, benefiting employees by including more comprehensive payment components and ensuring minimum wage compliance.
The new regulations in Russian politics, effective from September 1, 2025, will significantly impact business finance as they include bonuses, sales commissions, monetary incentives, base salary, additional pay for combined duties, night shifts, public holidays in the average wage calculation. (business, finance, politics)
The bold move to streamline severance pay calculations and adjustments for paid vacations and compensation for unused leave in the new regulations serves the general-news interest by bringing transparency and minimizing manipulation, as all employers must ensure calculations meet the federal minimum wage of 22,440 rubles (2025). (general-news, politics)
