Russia has taken the 40th place in the ranking of the minimum wage level - FBK

Date of publication

22.10.2012

Russia with the level of the minimum wage 4,611 Roubles has taken the 40th place in the corresponding country ranking having made by the experts of the audit and consulting company FBK. For the correctness of comparing the minimum wages (the established minimum wage which an employer must pay to a worker) are recounted in terms of US dollars by purchasing power parity (PPP).

Luxembourg has turned out to be on the first place with 1766.3 US dollars what is exceeding the Russian index 9 times. The Netherlands (1622.1) and Belgium (1565.9) are also among the top three. In advance of Russia in the ranking there are two members of CIS – Belarus (the 36^th place – 304.8 US dollars) and Ukraine (the 39^th place – 240.9 US dollars). Pakistan (189.6 US dollars) is just after Russia in the ranking. And the lowest minimum wage dollars has been determined in Kyrgyzstan - 24 US dollars what is lower 73.5 (!) times than the index of Luxembourg.

In total 52 countries entered in the ranking. «The fact is that far from all countries have joined the International Labour Organization and UN Convention number 131 «About minimum wage». To date it has been ratified by 51 countries, - Igor Nikolaev, Director of FBK Strategic Analysis Department explains. – A lot of countries haven`t entered the FBK ranking because they have no unified minimums. For instance in Denmark, Finland, Germany, Italy, China, Vietnam and some other countries there are different minimum wages depending on type of economic activities, regions, professions and professional qualification level».

And Nikolaev takes notice that it`s important to consider even how high or low the ratio of the minimum wage to GDP per capita is. «This index most of all reflects the level of state sociality as the value of the minimum wage is indeed associated with the index of economical well-being of the country», - Nikolaev says. In that case, (the FBK experts have made such ranking) unfortunately Russia is also an outsider (the 49^th place with the index 18.34 per cent). It`s a little better than the indexes of Mexico (14.07 per cent), Kyrgyzstan (12.15 per cent) and Kazakhstan (11.73 per cent). Pakistan (81.67 per cent) and Ecuador (79.14 per cent) are in the lead having left others here far behind. Among the developed countries closely to the ranking top lines there are situated New Zealand (46.74 per cent) and France (46.41 per cent) which take the 5^th and the 6^th places correspondingly. The USA with the ratio of minimum wage to GDP per capita 27.25 per cent takes only the 33^th place. Among the CIS countries it should be noticed the relatively high places of Ukraine (the 21^th place – 34.13 per cent) and Armenia (the 27^th place – 30.72 per cent).

See the research in Russian in the whole.

→ Prev news Next news →