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September 17, 2013

Russia May Freeze Federal Salaries in 2014

by Reuters

Russia may freeze state employees' salaries next year as part of a call to keep regulated tariffs flat, seeking to curb spending and ease inflation, Deputy Finance Minister Tatyana Nesterenko was quoted as saying on Tuesday.
 
Last week, Russian President Vladimir Putin backed plan to freeze regulated tariffs for utilities such as gas, electricity and railway fares, in a move to curb spending and consumer prices at expense of companies' profits.
 
Speaking to reporters in Kazan, Nesterenko said that the government may put on hold salaries of state employees, military, judges and prosecutors, Interfax news agency reported.
 
“The key economic task is to slow down expenses. In that regard, decisions to freeze regulated tariffs were taken as well as the decision not to raise salaries... next year,” she said.
 
Average salary in Russia, the world's top oil producer, is around 30,000 roubles ($930) per month, less than a half of that of federal employees.