Minimum Wage Agreement signed in Tatarstan

The Minimum Wage Agreement between the Federation of Trade Unions of Tatarstan, the Coordination board of Employers' Association, the Cabinet of Ministers of the Republic of Tatarstan was signed today. The abovementioned parties were represented by the Prime-Minister of the Republic of Tatarstan Ildar Khalikov, the Chairman of the Federation of Trade Unions Tatyana Vodopyanova and the Chairman of the Coordination board of Employers' Association Alexander Lavrentyev.

In accordance with the Agreement the minimum wage including compensation costs and payments by way of incentive in organizations of non-budgetary economic sector will total not less than 6 420 rubles per month starting 13 August 2014. This value makes up 91% of subsistence rate for the working-age population that amounted to 7 060 rubles in the 1st quarter of year 2014.

Еhe minimum wage in national and municipal institutions in the Republic of Tatarstan corresponds with the minimum salary establish by the Federal law About the minimum wage and totals 5 554 rubles per month.

15,6% increase of the minimum wage in the real sector of economy, in comparison to the minimum statutory monthly pay establish by the Federal legislation, is supposed to contribute raise in wage for lowly-paid worker groups and decrease the number of workers whose salary is under the subsistence level.

The Agreement as well prescribes the procedure of employer’s joining in with the Minimum Wage Agreement in accordance with the Labour Code of the Russian Federation. The Agreement extends to all the employers acting in the Republic of Tatarstan (except for the federally-funded organizations) that have not delivered a substantiated refusal to the Ministry of Labour, Employment and Social protection within 30 days from the date the Agreement has been published. This refusal should be preliminary approved by a labor union organization as well as contain the terms of increasing the minimum wage for the workers up to 6 420 rubles. At that in accordance with the Federal legislation this employer together with the leader of the labor union organization can be asked to meet in consultation with the members of the Trilateral Commission.

The Agreement as well as the suggestion about joining in for the republican employers will be published as required by law.