Minimum Wage Rating Remains Low
- The Moscow Times
- Mar. 06 2013 00:00
- Last edited 16:08
Russia is one of the three European countries with the lowest minimum wage, according to a report by RIA Rating Agency released Tuesday.
Recalculated in dollars and taking into consideration purchasing parity, Russia ranks 25th, with a minimum monthly wage of $223, or 70 percent of the subsistence level.
The average European wage, taking into account purchasing parity, is $823 3.7 times higher than in Russia. The similarly calculated minimum wage in the United States is $1,340.
Russia is trailing Ukraine by almost $60 and lags behind Belarus almost twofold. It is ahead only of Kazakhstan, with $144, and Moldova, with $85. Luxembourg leads the purchasing-power-parity-based rating with $1,750, followed by Ireland with $1,660 and the Netherlands with 1,651.
By actual minimum monthly wages, Russia placed 23rd out of 27 with 5,205 rubles ($170), an increase of 13 percent as of January 1. It was followed by Belarus with $159, Ukraine with $138, Kazakhstan with $122 and Moldova with $49.
Russia has been in 23rd place in the rankings for the past two years.
Luxembourg leads the actual wages ranking by RIA Rating with the minimum monthly wages converted in rubles equal to 75,605 rubles ($2,467). Belgium, the Netherlands, Ireland, France and Britain occupy second through sixth places, respectively, with wages between $1,977 and $1,664 counted in rubles and converted to dollars.
In Russia, Moldova and Kazakhstan the minimum wage represents about 20 percent of the overall average wage. For the Czech Republic, Belarus and Ukraine that figure rises to more than 40 percent, while Slovenia, Belgium and Hungary are the leaders with 60 percent.