The cost of living is a certain amount of money that can ensure the physical survival of a person in the current price level. However, prices are constantly rising, and with them the cost of living increases.
From the point of view of the current legislation, the cost of living is a monetary expression of the value of the so-called consumer basket. It, in turn, includes a minimum of food and non-food products, as well as the services a person needs to ensure basic physical survival for a month.
The concept of a living wage
The composition, size and other characteristics of the living wage in the Russian Federation are established at the legislative level. So, at the moment they are determined by Federal Law No. 134-ФЗ dated October 24, 1997 "On the Living Wage in the Russian Federation".
The specified legal act, in particular, provides that several types of living wages are established in a country with a certain frequency. Firstly, the legislator proceeds from the premise that different amounts of money are required to provide for an adult, a child and a pensioner. Therefore, the competent authorities calculate the three main types of living wages - for the able-bodied population, for pensioners and for children.
The second factor differentiating the size of the living wage is the region of residence. The fact is that in different constituent entities of the Federation, the price level for the same goods or services can vary significantly depending on a number of factors, including climatic conditions, level of wages and others. Accordingly, the subsistence minimums in these regions will also vary. Thus, the country calculates the total federal living wage, as well as living wages separately for each region of the Russian Federation.
