Tuesday, September 30, 2014

Kremlin officials and the government refused to indexing their salaries – RBC

Kremlin officials and the government refused to indexing their salaries – RBC

The Law “On the Civil Service in the Russian Federation” obliges the government annually indexed salaries of federal civil servants to account for inflation. But in the federal budget for 2015 and the planning period of 2016 and 2017, years of funds for this purpose are not provided, the government said in a statement posted on the website of the Cabinet of Ministers.

Therefore, application of this rule is proposed to suspend until 1 January 2016 year. For this purpose, the State Duma will be introduced a bill prepared by the Ministry of Finance, according to the Government, signed on Tuesday, Prime Minister Dmitry Medvedev. It has been reviewed and approved at a cabinet meeting on September 18.

The government is not the first time suspend the operation of this rule. This was first done in 2010 for a period of one year. In late 2010, “freezing” the indexation of wages was extended to January 1, 2014.

In 2013, a bill was passed, extending the freeze in 2014. In mid-September last year, First Deputy Prime Minister Igor Shuvalov said that the increase of salaries of civil servants in Russia in 2014 and will not be, in 2015-2016 indexing possible.

With the current solutions indexation of salaries of senior officials the Kremlin and the White House will not be held for the sixth year. This, however, does not mean that the officials do not grow wages. They can not be adjusted due to higher prices, as it prescribes “frozen” article of the law “On civil service”, and to improve the wage system and the system of state guarantees.

So, in 2015, it proposed to spend 77 billion rub., in 2016 – more than 110 billion rubles., 2017 – more than 193 billion rubles. This means provided in excess of the salary fund of civil servants, explained earlier RBC representative of the Ministry of Finance.

The increase in fund incentive payments (payments in excess of base salary), in particular, should lead to a sharp increase in salaries of officials: 2018 is not planned less than two-fold increase, reported the Ministry of Finance in response to RBC. By this time, the share of incentive payments in salaries of officials should reach 40%, it is said in the draft “Guidelines for fiscal policy.”

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