Real Incomes of Russians Decreased by 2.9% in November
OREANDA-NEWS Income of Russians began to fall again. In November, it decreased by 2.9% compared to the same period last year. During 11 months the growth amounted to a negligible 0.4 percent. The situation will be slightly corrected in December - the authorities have already announced that they will pay in advance indexed pensions for January. Analysts at the same time sure, that revenue will continue to fall in the future.
Experts previously explained that income against the background of rising wages are falling because income from other sources, in particular from business, rental housing, etc., are reduced.
In December, the situation with income will somewhat improve. The Pension Fund of Russia (PFR) must pay early January pensions, said Deputy Prime Minister for social Affairs Tatyana Golikova. Moreover, pensions are planned to be paid taking into account the indexation planned for 2019.
"In connection with the indexation of pensions from January 1, 2019, I would like to draw attention to the need to make early advance payment of pensions in December for the weekends and holidays of January 2019," Golikova said, speaking at a meeting of the FIU.
Golikova has demanded to provide "timely delivery of the amounts of pensions in the new sizes." Currently, the average pension in Russia is 14.1 thousand rubles. Since January 1, 2019, the average monthly increase in the insurance old-age pension for non-working pensioners will be 1 thousand rubles. That is, the indexation of pensions next year will be 7%.
Incomes have fallen, despite the growth of wages. In November, in nominal terms it grew by 8.6% and averaged 42 750 RUB per month. Real wages (i.e. adjusted for inflation) increased by 4.6% in November and 7.4% in 11 months.
Only non-working pensioners are entitled to indexation. There are, according to the FIU, about 40 million people. For working pensioners (about 9 million people) indexation is not provided.
But even the advance payment of pensions will not help the government to meet the poverty reduction forecast. At the end of the year, the Ministry of Economic Development expects that the number of citizens with incomes below the subsistence minimum will be 12.3% of the total population.
In the third quarter, the poor were 19 million (12.9%), which is 200 thousand more than in the second quarter.
This figure rose for the first time this year — in the first and second quarter it decreased. Last year, the number of poor Russians also declined steadily from quarter to quarter. In the first nine months of 2018, the poverty rate was 13.3%.