The minimum monthly wage in Russia is set to increase by 109% this September. Despite the rise to 2,300 roubles – the equivalent of 89 dollars – the amount still remains below the subsistence level.
The government says it plans to gradually bring the minimum wage into line by 2011. Russia's health minister says a sharp wage rise could put too much pressure on pay scales, with employers finding it unprofitable to pay low-skilled workers a higher salary. Regional budgets could also be affected. According to statistics more than 15% of Russians live below the poverty line.