Discussion in the State Duma focuses on the potential advantages of raising the average salary in Russia
In a significant move towards greater transparency and fairness in wage calculations, Russia has introduced a new system for calculating average wages, effective from September 1, 2025. The new system, announced by Yaroslav Nilov, chairman of the State Duma committee on labor, social policy, and veterans' affairs, aims to simplify wage calculations and provide benefits to employees.
The key changes in the new system include the inclusion of bonuses and cash rewards in the calculation of average earnings. This move benefits employees by potentially increasing the base used for wage-related calculations.
Another significant change is the method used for calculating severance pay. Under the new rule, severance pay is determined by multiplying the average earnings per day by the average number of working days in the month. For accounting of summed working time, severance pay is calculated by multiplying average hourly earnings by the average number of monthly working hours in a year.
The new system also marks the abolition of all former normative acts related to average wage calculations. These acts have been consolidated into the new framework, with other general calculation rules remaining unchanged aside from these innovations.
The rules for other cases remain unaltered in the new system for calculating average wages.
These changes are expected to bring about a more streamlined and fair wage calculation process in Russia. The report on August 6 also predicts that some citizens' wages are set to increase this fall as a result of these changes.
[1] Source: Official document establishing the new system for calculating average wages in Russia.
Finance and business leaders, along with those in politics and general news, are discussing the potential impact of the newly introduced wage calculation system in Russia. This system aims to incorporate bonuses and cash rewards, which could increase the base for wage-related calculations and potentially benefit employees. Additionally, the new method for calculating severance pay, which involves multiplying average earnings per day by the average number of working days in the month, is expected to bring a more streamlined and fair wage calculation process in business.
