The average living wage is a conditional value that is necessary in order to calculate the minimum budget expected to maintain a normal standard of living of the population. This indicator is calculated in each country individually and is based on daily human needs. Together, the money spent on collateral forms the minimum amount that should be paid to citizens. What is the average cost of living in Russia?
What is the cost of living?
The cost of living per capita is a unit that determines the standard of living in the state as a whole. To exist normally, you need a certain amount of food and non-food products. Their price in total gives this indicator.
The indicator is quite important for the organization of the country's social policy. In the Russian Federation, all the subtleties of the process of calculating and distributing the cost of living are fixed by a regulatory act dating back to 1997. This is Law No. 134, which is called “On the Living Wage in the Russian Federation”. The content of the law is to secure the amount of money that should cover all the priority expenses of citizens.
Why is this indicator necessary?
The cost of living and the cost of the consumer basket are calculated by government agencies not only for the analysis of statistics. These data are included in the implementation of the following indicators:
- assessment of the quality and standard of living of Russian citizens in certain regions;
- the establishment of wages, as well as social benefits to residents;
- forecast and budgeting of the country;
- grounds for the development of social programs and assistance projects for the population.
The last point is to isolate certain layers and categories of the population who require additional support from the government in the form of financial assistance. The latter has several types, depending on the purpose and purpose. These may be benefits, subsidies and allowances.
After the calculation of the subsistence minimum has been made, the population can assess its wealth. Depending on what size the state sets for this indicator, people can determine the possibility of participation in social programs. Knowing his rights, a person really deserves financial support. And now you just need to decide which services and structures to contact.
What is a consumer basket?
How much is the cost of living per person in the Russian Federation? The calculation of this concept is impossible without another term - the consumer basket. It is its price that underlies the establishment of this indicator. A consumer basket is formed from a certain set of goods, which, in turn, is officially fixed by a decree of the Government of the Russian Federation. This list was last updated on January 29, 2013. The next time the procedure will be carried out in 2018.
After numerous discussions, Decree No. 56 was issued, which determined the existing inalienable elements of human life. These include a list of the most essential foods and non-food items. A separate place is reserved for the service sector. The state took into account the fact that every citizen must make certain contributions to the budget and pay tax fees. A basket may have a different cost for each person. This is determined by the socio-demographic group to which the citizen belongs.
What is included in the food basket?
The cost of living in 2016 is largely determined by a set of food products. A normal diet is the key to human health, that is, of the nation as a whole. The state believes that a person needs to eat the following foods:
- cereals (flour, pasta and bakery products, cereals and legumes);
- vegetable crops (among them a special place is given to potatoes, cucumbers, tomatoes and cabbage);
- fruits;
- confectionery;
- protein products (various types of meat, fish, milk, dairy products, eggs);
- sunflower and butter;
- flavoring products (such as tea and spices).
What does the non-food portion of the consumer basket mean?
Of course, the cost of living in 2016 could not do without industrial goods. This part of the consumer basket is mostly occupied by textile products. The first category is clothing. Every Russian should be provided with warm clothes, light summer clothes, as well as hosiery and haberdashery. The basket also includes the cost of shoes. Separately distinguish the office and household goods. Citizens are provided with personal hygiene products. It is impossible to imagine a non-food category without drugs.
What service sector offers does the basket pay for?
Certain categories of services are also paid by the subsistence minimum. The family is paid for entertainment and cultural events, as well as travel in all modes of transport. This part of the consumer basket also takes into account the payment by the citizens of the Russian Federation of utilities. It is understood that a person uses the complete list, consisting of rent, heating, electricity, gas, water (cold and hot) and sewage.
That is, these elements should be present in the daily routine of all people. The cost of a consumer basket varies depending on who it is designed for - for children, citizens of working or old age.
How is this indicator calculated?
The average living wage is calculated in several stages:
- Determination of the volume of consumed goods, compilation of a consumer basket.
- Calculation of the share that a person needs during one calendar month.
- Multiplication of the number obtained in the previous stage by the average cost of a given product.
- Generalization of data.
It can be seen from this serial line that forecasting a given quantity will not yield accurate results. Therefore, for a more careful and accurate calculation, such a number is displayed every three months.
In addition to the valuation of the consumer basket, the current level of inflation, the price level in the country, as well as the amount of tax fees and deductions to the state budget are taken as a basis for determining the average cost of living.
Who is setting this indicator?
Due to the difficulties in the geographical location of the Russian Federation, a living wage for the regions is set separately. This value varies, although not significantly. Indeed, in every corner of such a large state there are completely different needs. Several groups of factors contribute to the calculation. These include:
- climate zone;
- ecological situation in the region;
- price lines.
For a more accurate formation of the cost of living in each part of Russia, there is a commission that is engaged in counting. Since this indicator is reviewed once every five years, representatives of various services are convened precisely at that time. These include people who provide data from the Ministry of Labor, social protection services, and statistical organizations.
After collecting the necessary information, the work of the commission is aimed at analyzing and counting them. It is these people who determine those important factors in a person’s life, without which he will not be able to maintain a normal standard of living. That is, a person should eat normally, not be sick, be protected and develop.
At the end of the work, the commission should identify three numbers that characterize the value of the consumer basket for the three socio-demographic groups. When each region has calculated its values, the average cost of living is formed over the entire territory of the Russian Federation. This number is just a generalized economic benchmark, which from quarter to quarter can decrease or increase. This mainly depends on the appearance of seasonal goods and events occurring throughout the year.
How to independently calculate the cost of living?
To understand whether it is worth contacting the organization of social protection of the population and whether to count on financial support from the state, you need to know how to independently determine the cost of living. This will help determine the level of wealth in the family and understand which socio-demographic category one can attribute to.
To do this, you must first break your family into three categories. The first will include children, the second - able-bodied persons, and the third - members of the elderly family. After in each category you need to knock down the total, that is, the number of people in each group. The next step is to multiply each value obtained at the previous stage by the value of the subsistence level of the region of residence. Separately, these indicators are made for residents of Moscow and the northern capital - St. Petersburg.
The average living wage in Moscow is greater than in other regions of Russia, and amounts to 15,092 rubles. This number is a generalized indicator of this value for able-bodied residents (17,219), children (12,989) and pensioners (10,715).
The average cost of living in St. Petersburg is 10 526 rubles. It combines the value of the indicator on able-bodied Leningraders (11 568), children (10 144) and elderly people (8419).
Representatives of three categories at the same time are not always part of the family. If some socio-demographic group is not present as a member of the cell of society, then it is simply omitted in the calculations. The formula for determining the total budget consists of the total family income divided by the number of people. In the event that this value is lower than the subsistence level per capita established by the local authorities, this gives the right to receive the status of a poor family.
What is the help from the state?
In the event that individual family members do not have the opportunity to find a job or the financial condition does not reach a certain level established by the state, these people have the right to receive benefits. Surcharge to a living wage may vary.
Special services on the basis of the documents provided, which are confirmed by certificates of income of the husband, wife, children, disabled and incapable members, issue their verdict. The following types of financial payments are calculated:
- scholarship;
- pension;
- allowances;
- compensation;
- educational assistance;
- all types of rewards;
- unemployment benefits;
- alimony;
- rental income;
- payments for harm caused to health by the enterprise;
- wage;
- profits from the sale of housing and real estate.
In order to apply for the status of a poor family, you must come to the appropriate authorities in whose jurisdiction this procedure is carried out. This is mainly done by the labor and social protection services.
Persons of retirement age, disabled citizens, low-income or large families, unemployed, and students apply for priority payments. The able-bodied residents of Russia can count on financial assistance only under certain conditions.
In order to monitor the observance of one’s own rights and prevent their violation, it is necessary to insure and independently carry out calculations.
Each category of citizens has its own nuances when applying for surcharges to a living wage.
Elderly people most often, except for a pension, have no other sources of income. But, for example, a lump sum payment by the state is not taken into account in the calculation. The calculation itself is carried out depending not on the region of the actual place of residence, but on the registration.
The process of processing bonuses for the working-age population is standard. However, the state is not always obliged to do this. Therefore, in order to eliminate misunderstanding, it is necessary to carefully study the legislative framework.
For persons with disabilities, a feature of the procedure is a set of specific documents, including medical certificates, opinions of various specialists, medical history and so on.
Not everyone falls under the category of unemployed, but only certain groups of citizens. For example, these are women on maternity leave who previously worked in liquidated enterprises. Also officially registered as unemployed are those registered on the labor exchange.
Only those students who study full-time are entitled to receive surcharges. The whole process of registration goes through the dean's office.