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What is the cost of living and why is it needed
What is the cost of living and why is it needed

The authorities believe that an income of 11,653 rubles allows a person to provide himself with everything he needs and brings him out of the poverty line.

What is the cost of living and why is it needed
What is the cost of living and why is it needed

What is the cost of living

This is the smallest amount that is considered sufficient to ensure the normal functioning of a person.

At the subsistence level, in particular, you can buy a set of products necessary for the functioning of the body and maintain health, as well as provide oneself with non-food products and services.

At least this is what the law states. As you can see from the wording, the amount does not imply excesses. It is designed only for the most necessary expenses.

Now the cost of living is 11,653 rubles.

How is the living wage calculated?

Previously, it was installed every three months both for Russia as a whole and for each subject. Since 2021, the cost of living is revised once a year. And they do it before July 1 of the previous year. For example, the indicator for 2022 has been known since June 30. It is 11,950 rubles. A separate amount is also set in each region.

The subsistence minimum is calculated on the basis of the median per capita income for the previous year and amounts to 44.2% of it. The median income is a borderline figure: half of Russians earn more than it, and half less.

There are separate indicators of the subsistence level for the working-age population, children and pensioners. Previously, this amount for the first category of citizens included the cost of the consumer basket, as well as income tax. For children and pensioners, the subsistence minimum was equal to the cost of the consumer basket. But now the calculation is based on the median, so instead of a set of products, the authorities rely on numbers. For an able-bodied person, the indicator is 109% of the average minimum, for a child - 97%, for a pensioner - 86%.

It turns out that with an average all-Russian subsistence minimum of 11,653 rubles for the working-age population, the amount of 12,702 rubles is assumed, for children - 11,303 rubles, for pensioners - 10,022 rubles.

Why do you need a living wage

It is the very “poverty line” behind which there are almost 18 million people in Russia. It is this indicator that is used to recognize a family or a citizen living alone as poor. You can apply for social support if the income for a family member is below the specified amount.

The subsistence minimum is taken into account when forming federal and local budgets, assessing the standard of living of the population. On its basis, the amount of benefits, scholarships and social benefits is also determined.

This article was posted on February 11, 2019. In September 2021, we updated the text.