Alteration in the Methodology of Average Salary Calculation in Russia, as Unveiled by Duma, Commencing from September 1st
In a significant move, Russia is set to implement new rules for calculating average wages starting from September 1, 2025. These changes, which will replace outdated regulatory acts currently in effect since 2007, aim to make the calculation process more transparent and fair.
Yaroslav Nilov, the chairman of the State Duma's labor committee, has stated that these updates offer several significant advantages for workers. One of the key changes is the inclusion of both bonuses and monetary rewards in the calculation of average wages, a move that Nilov notes is a clear plus for employees. This adjustment will allow for a more comprehensive accounting of all types of rewards received by an employee.
Vacation pay and compensation for unused leave will remain unchanged under the new regulations. Vacation pay is calculated by dividing the total salary earned during the calculation period by 12 and by the average monthly number of calendar days, which is 29.3. Compensation for unused leave is calculated in a similar manner.
Currently, the childcare benefits system provides a child care allowance of 40% of the average earnings for up to 1.5 years, with a minimum of 9,000 rubles and a maximum of 69,000 rubles per month. There is a proposal to increase these benefits for families with multiple children. For a second child, the allowance would rise to 60% of average income for 2.5 years, and for a third child, it would be 80% for three years. However, no specific details have been provided on how these calculations will be adjusted under the new average wage rules.
Experts suggest that the changes will lead to a more fair accounting of all types of worker incomes. The parliamentarian emphasized that everything under the new regulations is modernized, up-to-date, and fully functional. Nilov further explained that the traditional calculation rules for vacation pay and compensation for unused leave have proven effective in practice and will remain unchanged.
The new average wage calculation rules in Russia will be effective from September 1, 2025, to September 1, 2031. The changes are expected to have a positive impact on the size of employee payments, offering numerous benefits to workers. However, further details about the implications of these changes, particularly regarding childcare benefits for children under 1.5 years, have yet to be disclosed.
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