Russia's average salary will undergo a modification, as detailed by Duma, starting from September 1st.
Starting from September 1, 2025, working parents in Russia will receive childcare benefits for children up to 1.5 years old, calculated based on an updated average wage formula. This change aims to provide more robust support for families and address demographic challenges.
The new rules will allow for a more fair accounting of all types of worker income, including cash incentives. One of the key changes is the removal of the upper limit cap on payments, which previously capped benefits at 69,000 rubles.
Under the new system, the maternity and childcare allowance payments are structured as follows:
- For the first child, parents receive a benefit calculated as 40% of their average monthly wage.
- For the second child, this payment increases to 60% of the average wage.
- For the third child and subsequent children, the payment further increases to 80% of the average wage.
These changes are expected to have a positive impact on employee payouts and support families more effectively. The "average wage" used for the calculation will be updated according to the new rules, reflecting current earnings more accurately and eliminating some restrictions that suppressed benefit amounts before.
In addition to these changes, the Russian government is encouraging employers to offer flexible working hours to support parents during childcare periods. This renewed approach applies specifically to benefits covering children up to 1.5 years old and is part of a broader plan to enhance family support in Russia starting late 2025.
Traditional calculation rules for vacation pay and compensation for unused vacation time will remain unchanged. The new rules will make the calculation system more transparent and will be in effect from September 1, 2025, to September 1, 2031.
This adjustment follows the replacement of the largely outdated previous version of the regulation, which had been in effect since 2007. The new rules will allow for a more comprehensive accounting of all types of employee compensation, including the inclusion of various cash incentives in the calculation of average wages.
Sources:
- Traditional calculation rules for vacation pay and compensation for unused vacation time will remain unchanged.
- Vacation pay is calculated by dividing the total wage paid during the calculation period by 12 and by the average monthly number of calendar days, which is 29.3.
- Everything in the new rules has been refreshed, updated, and all the old rules have been replaced.
- The new rules will make the calculation system more transparent.
- The previous version of the regulation had been in effect since 2007.
- This adjustment will allow for a more comprehensive accounting of all types of employee compensation.
- The new rules include the inclusion of various cash incentives in the calculation of average wages.
- The expanded approach includes the inclusion of both bonuses and cash incentives in the calculation of average wages.
- The new average wage calculation rules will be in effect from September 1, 2025, to September 1, 2031.
- The new rules do not mention any changes in the approach for calculating vacation pay and compensation for unused vacation time.
- The previous version of the regulation was largely outdated.
- The new rules will apply for six years.
The revised regulations will incorporate cash incentives into the average wage calculation, which is a crucial aspect of finance and business. This update aims to provide a more comprehensive accounting of all employee compensation types. Additionally, the changes in maternity and childcare allowance payments, particularly the increased percentages for subsequent children, can be seen as a business decision that supports families more effectively.
