The concept of "living wage" has been introduced into legislative acts and in everyday life since 1998. At its core, it is the monetary equivalent of the value of the “consumer basket”. This “basket” is the minimum set of food products, as well as non-food goods and services, necessary for survival. Each region has its own cost of living and its own cost of a consumer basket, but in Moscow they are much higher than in the whole country.
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Consumer basket cost
The cost of the consumer basket is used to justify the minimum wage (minimum wage). The value of the minimum wage, in turn, determines the amount of social payments that the state takes upon itself to maintain socially unprotected categories of citizens. In connection with constant inflation, the cost of food, industrial goods and services is a variable, but constantly growing. Moreover, in each region, the quantity and value of the goods that make up the "basket", as well as the real inflation rate, can be different.
By the decisions of the government of the constituent entities of the Federation, the subsistence minimum is approved for each region on a quarterly basis.
The capital of Russia is a city of federal subordination, that is, it is equal in status to a constituent entity of the Federation, therefore, the value of the consumer basket is also determined for Moscow. The cost of living in Russia as a whole, according to Decree of the Government of the Russian Federation No. 233 of March 27, 2014 for the IV quarter of 2013, amounted to:
- per capita - 7326 rubles;
- for able-bodied citizens - 7896 rubles;
- for pensioners - 6023 rubles;
- for children - 7021 rubles.
In the city of Moscow, a living wage, in accordance with the Decree of the Government of Moscow No. 81-PP of 02.25.2014. amounted, respectively: 10965, 12452, 7908 and 9498 rubles. For comparison, these values for the Moscow region are: 8072, 8971, 6068 and 7724 rubles, respectively.