Living Wage and Salary – Modern Realities and Prospects of Change

Abstract

The paper analyzes the validity of the minimum subsistence level and minimum payment wage officially established in Russia. The subsistence minimum is determined on the basis of calculated consumer basket, which is reviewed by the Government of the Russian Federation once every five years. Currently, the volume of the consumer basket is tied to food products in physical terms, the standards of which are underestimated in comparison with rational norms of consumption. Accordingly, the minimum wage level, which is oriented towards the cost of living, is also understated. This leads to a reduction in population incomes, to insufficient quality nutrition and inadequate satisfaction of other human needs. It increases social tension, reduces opportunities for professional growth of workers, and, accordingly, development of society as a whole. To solve these problems, it is necessary to revise approaches to calculating the cost of living, minimum wages and provide a decent quality of life to the population of the country.