Standard of living in Belarus: salaries, prices of goods and housing. Analysis of wages in Belarus by sector and region
In December 2016, compared to the same period in 2015, dollar wages in Russia and Ukraine increased. In Belarus they remained virtually unchanged. What is happening on the labor market in three countries, what to expect in 2017 - comments our economic observer Dmitry Ivanovich.
In December 2016, wages in Belarus amounted to 801.6 Belarusian rubles ($408.3). Compared to December 2015, they increased by only $1.2.
In Russia, salaries increased by $142 over the year. In Ukraine, in December last year, compared to December the year before, average earnings increased by $24.
Dynamics of wages in Belarus, Russia and Ukraine in 2015–2016, in $
Thus, in December 2016, wages in Russia were 1.87 times higher than wages in Belarus. And 3.1 times - wages in Ukraine.
At the end of 2016, average salaries in Belarus were 65% higher than in Ukraine.
Dynamics of wages in Belarus and Ukraine in 2015-2016, as a percentage of the average monthly wage in Russia
Here are regional salaries in three countries at the end of last year:
Average salary in Belarus, Russia and Ukraine in December 2016, in $
Belarus the only one of the three countries in which in December last year in some regions wages in dollar terms did not increase compared to December 2015.
The level of wages in Belarus is oriented towards the Russian one. However, attempts to overcome the level of 80% of wages in Russia ended in our country:
- Devaluation processes
- A return to the average salary range of 55%–65% of Russian
Until the recovery of the Ukrainian economy, the Belarusian labor market was of interest to specialists from this country. However, last year interest in the Belarusian labor market decreased significantly. The number of migration influx of Ukrainian citizens is decreasing:
- In 2015, taking into account those who left, 9.7 thousand citizens of Ukraine came to Belarus
- In 2016 - 3.7 thousand
Of the three countries, Belarus has the lowest level of bonus payments at the end of the year - within 10-15% of the salary in November 2016.
Russia the only one of the three countries in which the national currency has strengthened. This has had a large positive impact on wages in dollar terms. As a result, wages in Russian rubles increased by 9.6%, in dollars - by 22.8%.
Wage growth occurred against the backdrop of neutral dynamics in the economy.
Salaries in December 2016 in all Russian regions exceeded $400:
- The maximum level was noted in the Chukotka Autonomous Okrug - $1,852. This region also leads in absolute salary growth over 12 months - by $422.
- In 10 regions, Moscow and St. Petersburg, as of December they paid $1000+
Russia is characterized by the highest level of bonus payments at the end of the year - on average, December salaries are 30% higher than November ones.
Ukraine the only one of the three countries in which the tax burden on the payroll fund has significantly decreased over the past two years:
- After the reform carried out in the country, the single social contribution has been reduced from 41 to 22% since 2016.
- Another 18% is personal income tax and 1.5% is military duty
A reduction in the tax burden could have a more significant impact on wage growth. However, employers kept most of the savings and reduced their costs. According to various estimates, 40% of social contribution payers declare minimum earnings. Every second worker in the country receives a salary in an envelope. For these reasons, the real level of wages in Ukraine differs significantly from Ukrstat data.
Regionally, dollar wages have increased in all regions. The highest, in Kyiv, amounted to $423 in December. In all other regions of Ukraine, workers did not receive an average of more than $270. A year earlier, with the exception of Kyiv, the maximum salary level did not exceed $250.
Bonus payments at the end of the year in Ukraine range from 15% to 20% of the salary in November.
The highest paid activities
Data: Belstat, Rosstat, Ukrastat, own calculations
In the highest paying activities in all three countries, wages increased over 12 months. The financial sector leads in terms of wages in Russia and is one of the three highest paid sectors in Belarus and Ukraine. A high level is noted in the field of scientific research and development. In Belarus, he is not among the highest paid, but exceeds the average salary in the country.
Low-wage sectors of the economy in the three countries include agriculture, textiles, hotels and catering.
Trends:
Russia and Ukraine had minimum wage levels in 2015. Since then, wages in these countries have been increasing. There are economic prerequisites for this (growth of industrial production, growth of financial indicators of enterprises) for a further increase in wages. An additional factor for Russia may be a reduction in the working-age population due to demographic processes.
The situation in Belarus depends on the willingness of the authorities to reform the current economic model. It is unable to achieve its goal of raising wages to $500 without a significant amount of external assistance.
In Ukraine, real salaries are higher than declared ones. Making adjustments to regulatory documents on the taxation system can significantly increase the official level of remuneration.
The conflict situation between Russia and Ukraine will not contribute to the flow of labor migrants. If the entry regime into the EU is simplified, specialists from Ukraine may find themselves on a more interesting European market in terms of salary.
The Belarusian market will cease to be attractive for Ukrainian citizens.
Back in 2017, President of Belarus Alexander Lukashenko set the goal of increasing the average income of a resident of the country to 1,000 Belarusian rubles. As practice has shown, this was not possible (if you do not pay attention to the December jump, which has nothing to do with the real state of affairs in the economy). Moreover, incomes in other regions of Belarus, except for the capital and the Minsk region, remain quite low. Lukashenko also focused on the low incomes of representatives of the public sector, which, according to him, needed additional emphasis. However, there were no fundamental changes here either.
Average salaries in various fields
Perhaps, like in many other countries, in Belarus, workers from the air transport sector earn the most. Income in this industry is 2,200 rubles.
In second place are employees of enterprises specializing in the chemical industry. Here you can earn an average of 1,775 rubles. The third place in the ranking was taken by the oil refining industry, where they receive 1,768 rubles. Also high salaries in such industries as:
● finance – 1,740 rubles;
● insurance – 1,739 rubles;
● mining industry – 1,460 rubles;
● design – 1,330 rubles;
● jurisprudence – 1,200 rubles;
● science – 1,150 rubles;
● pharmaceuticals – 1,050 rub.
Workers in archives, museums and libraries manage to earn the least. The income of employees in these industries is only 500 rubles. The salaries of social workers are slightly higher. Here you can get an average of 508 rubles. Creative activities are also not characterized by high earnings. People receive only about 550 rubles monthly.
What will the average salary be by the end of the year?
So, the December jump turned out to be just an episodic blip to imitate the frantic activity before President Alexander Lukashenko. This was shown by the average income of Belarusians for 2018, which fell sharply in January. The President demands that the task be completed, but there is no way to actually carry it out. Businesses are simply not ready for this. Accordingly, it is hardly worth building any castles in the air around the President’s statements. The reality will be harsher.
The news headlined “Real wages in Belarus exceeded Russian wages” sold like hot cakes. And what’s even worse is the figure that supposedly people in Belarus earn $1,648 a month. Let's figure out what really happened and what journalists decided to keep silent about in pursuit of hype.
What was the matter?
The Higher School of Economics published a special issue “Cross-country comparisons of wages in 2011-2017.” The study was published on the organization's website.
Economists compared salaries in dollars in Russia, the CIS countries, Eastern Europe, China and Brazil.
The analysis was based on data from national statistical services, statistical databases of the Organization for Economic Cooperation and Development (OECD), the CIS Statistics Committee, the World Bank and the International Monetary Fund (IMF). The researchers calculated salaries in two versions - at the nominal exchange rate and in terms of purchasing power parity (PPP).
We think nominally...
Most often, salaries are converted into dollars at the nominal exchange rate of the dollar to the currency of a particular country. In Russia in 2017, real wages at the nominal exchange rate were $670.9, in Belarus $421.9, in Kazakhstan – $459.1. These are the highest figures among the CIS countries, but less than in Hungary, the Czech Republic or Croatia. where the average salary ranges from $1000 to $1216.
What kind of parity is this?
Typically, the nominal exchange rate makes such calculations biased and not comparable for different countries. Roughly speaking, we don’t understand what we can buy in such a country with a local salary if we work there?
Therefore, the exchange rate is additionally calculated using purchasing power parity, and the average salary in the country in local currency is already multiplied by this rate. At this rate you cannot change currency at any exchange office. It is an abstract analytical tool. Just a figure that allows you to understand the relationship between price levels and production in different countries. It is based on a comparison of the cost of the same consumer basket in national currencies in different countries. And here everything is not so simple. for example, for Russia the nominal exchange rate of the dollar last year was 58 rubles, and recalculated according to PPP it was only 25 rubles per dollar.
Therefore, our salaries recalculated in PPP terms are almost three times higher than in nominal terms.
But here the situation is not so clear. Belarusians were ahead of us in PPP salaries - for them it was $1602.6, while for us Russians it was $1550.0.
But here the essence is approximately the same. In 2017, its average monthly amount was $1640.4. However, the indicators in Belarus exceed the average salary in Russia and amount to $1648.3 per month.
Let me note once again that these are abstract figures that characterize only the availability of goods and services for the population that can be purchased with an average salary. Why are these calculations needed? Only for one thing - to track how the situation changes in different years.
Objectively speaking, these figures indicate that the average resident of Belarus has begun to live a little better over the years, and can now afford to buy even more than the average Russian with his salary. It's no secret that Belarus has cheap products, cheap household items and domestically produced clothing - all thanks to subsidies to industries and a favorable geographical location, which allowed our neighbors to make very good money from our food embargo. In addition, Belarusians make money by refining Russian oil, which comes to them from Russia at reduced prices. Oil is processed into petroleum products - gasoline, fuel, which go to Europe. Since 2015, Belarusians have not paid duty to the Russian budget for them and are winning billions of dollars from this. But, of course, the Belarusian worker, alas, does not yet earn $1,648.
After A. Lukashenko’s announcement that the banner of the fight for the $500 average salary in Belarus was again being raised in Belarus, this time in 2017, Belstat reported on the 2nd month in a row of its decline: in October it fell again not only in $-equivalent, but also nominally in Br-rubles. Now, in order to reach a $500 salary at least in December 2017, it needs to grow by more than a third in a year and 2 months, and for the current dollar exchange rate to remain the same all this time. What foreign exchange resources will be required for this and whether another “2011” will come after 2017 is not reported.
Moreover, according to the traditional seasonal dynamics of the indicator, the average salary will decrease in November, and taking into account the dollar that has already risen in price this month, the decrease in the $ equivalent of November salaries will be quite noticeable. So you will have to rise to $500 from an even lower value and in a shorter period of time.
And the fall in wages in real terms, taking into account inflation, has been going on for a long time: in the “month to the corresponding month of the previous year” format - 28 months in a row. Over the course of a year (October 2016 to October 2015), real wages decreased by 5%, and over 3 years (to October 2013) - by 10.7%.
In October, the average salary in Belarus decreased after 4 months of growth
The average accrued (before taxes) wages in October amounted to Br722.9, which is Br10.0 less than in September. This decrease is the 2nd in a row after 4 consecutive months of growth. The dynamics of last year are repeated, when in each subsequent autumn month there was a drop in the national average salary compared to the previous one. This means that we can expect a decrease in the average salary in November.
However, the long-term trend in the dynamics of nominal wages in Belarus is upward, and the basis for this nominal increase in wages is inflationary growth. Over the past 10 years, from October 2006 to October 2016, the average salary has increased 11.7 times.
The historically record average national salary was the month before last, Br750.3, August 2016. And, looking at the dynamics of the indicator in all previous years, this maximum will last until December, traditionally the most “payroll” month of the year.
Salaries in Belarus over the years of independence: inflationary growth hundreds of millions of times
If we express today's salaries in the format of 1990, without taking into account the denominations that took place in Belarus in 1994 (1:10), 2000 (1:1000) and 2016 (1:10000), then the October salary of 2016 - this is 72.29 billion rubles, when in October 1991 there were 640, and in December 1990 - 269, then still, Soviet rubles.
That is, the nominal growth over 26 years and 10 months amounted to 269 million times (October 2016 to December 1990). For comparison, in Ukraine – 1.2 million times, in Russia – 80 thousand times: inflation in Belarus during the post-Soviet period became the highest among all countries of the former USSR.
Real wages in October decreased from September by 2.1%, over the year - by 5.0%, and over 3 years - by 10.7%
The October average salary is nominally lower than the September one by 1.36%. And since in October Belstat determined monthly inflation at 0.80%, real wages decreased by 2.1%. This is the second month in a row that real wages have fallen compared to the previous month.
Compared to the corresponding month of last year, the average October salary in 2016 remains lower in real terms: nominally it increased by 5.72% (by Br39.1) compared to October 2016, but prices for consumer goods and services for the year (October 16th to October 15th) increased by 11.0%. The result is a real drop in wages by 5.0%.
The dynamics of real wages (compared to the corresponding month of the previous year) entered the “minus” zone in July 2014, has been there for 28 months already, and, apparently, will remain there at least until the end of 2016.
Since in October 2015 there was a negative value (by October 2014), and in October 2014 (by October 2013), then over 3 years real wages decreased significantly: October 2016 to October 2013 - by 10.7%. This is, so far, the largest drop in real wages by 2013, the last stable and calm year in the region.
$- the equivalent of the average salary in Belarus decreased in October by $1 - to $379
In October, the dollar in Belarus fell by 1.11% (at the rates of the last trading in the month on the BVSE), and this strengthening of the Br-ruble, with a 1.36% nominal drop in the accrued average salary, compensated for the corresponding decrease in its $-equivalent: the national average fell by only $1, to $379 . In October 2015 it was $392: a drop over the year, thus $13 (by 3.3%). The drop over 2 years is much greater – $216 (by 36.3%).
Historically, the maximum $-equivalent of average Belarusian salaries was $626 in July 2014 (at the end of the month exchange rate - at the last BVSE trading in July 2014). Obviously, the record will not be updated here for many years. And in the worst case scenario (a fall in world oil prices below $35, with this comes another collapse of the Rr-ruble, and with it the Br-ruble) - the level of the crisis months of the devaluation year 2011 - below $300.
In 1991, the $ equivalent of Belarusian salaries, the national average, was less than $10 at the then market rate. During the period 1992-94. - 20-30 dollars equivalent. Until mid-2000, the average dollar salary in Belarus was less than $100. Although, of course, the purchasing power of the dollar in those years was very high in Belarus.
Goal - $500
In Belarus, again, like many years ago, the country’s leadership announced the goal of achieving a $500 salary, this time in 2017. From the October “point” of $379 it will have to be raised by 32%.
In November, the dollar in Belarus rose (at this moment - by 3.05% from the beginning of the month), and since another traditional nominal fall in the November national average salary is predicted, based on the average long-term dynamics of the indicator in Belarus, the $-equivalent next month may will decrease noticeably, and reaching a $500 salary even in the most distant and “salary” month of 2017 – December – will have to start from a lower point.
Taking into account the long-term monthly dynamics of the average salary, you can draw up a rough forecast plan for bringing it to $500 by December 2017, and then monitor its implementation. In this case, of course, the main thing is to maintain a stable Br-ruble to dollar exchange rate, weakening it over the year by no more than 10%, without which there can be no talk of any $500.
But even with a stable exchange rate, the rise in the average salary indicator looks very steep on the graph, although quite real - but only with economic growth.
Average annual monthly salary in dollars in Belarus - $364
The possibility of achieving an average annual monthly salary in Belarus equivalent to $500 in 2017 looks even less realistic. Now the average accrued salary for the last 12 months (from November 2015 to October 2016) is only $364. And the maximum value remains $592 (2014).
Now the third and strongest wave of decline in dollar values of wages over the past more than 15 years is ending: the 1st was in 2009 after a one-time devaluation at the very beginning of the year, the 2nd - during the monetary and financial crisis of 2011, 3rd - after the devaluation of December 2014 - January 2015.
Previous peak values of the average annual salary in $ equivalent: in 2008 - $414 per month, before the 2011 crisis - $437 per month. “Bottom” due to the global crisis of 2008-09. - $356, and due to the 2011 crisis - $314.
As can be seen from the graph, the fall has practically stopped. And according to the results of 2016, the average salary in dollars in Belarus will remain within these achieved limits - $360-370. In 2015 it was $418, in 2014 - $579, in the super-devaluation year 2011 - $333, in the crisis year 2009 - $356, in 2008 - $414.
Regional statistics
Traditionally, Minsk salaries are significantly higher than regional ones. The lowest average salary in October was in the Vitebsk region (last month the Mogilev region was an outsider).
In October, real wages fell the most since September also in the Vitebsk region, the least in Minsk.
Over the year, the most significant decrease in real wages occurred in the Gomel region. The smallest is again in the capital.
In $ equivalent, the average salary in October decreased in all regions. She grew up in the capital (the same thing happened last month). The largest drop in the $-equivalent in October was in the Vitebsk region.
The dollar equivalent of salaries in Minsk, on average in the city, has been consistently above $500 for 8 months now, while in the regions statistics have not shown an average salary of $500 since the end of 2014.
In addition, from year to year, capital salaries exceed regional ones by an increasing percentage: relative to the average salary throughout the country, the average salary in Minsk in October 2016 was 40% higher. The only region where the average salary is not lower than the republican average is Minsk.
In recent years, the “gap” of Minsk salaries has become increasingly larger; in the Minsk region they have all this time fluctuated around the national average level, and in the regions they have decreased relative to the Belarusian average.
Whether life is good or bad in Belarus is an eternal question that torments many. A lot of people are discussing Lukashenko’s policies, others are convinced that the head of the country is doing the right thing. The current issue is wages in Belarus, the average standard of living, and prices in this country. Let's take a closer look at these characteristics.
The relevance of paying wages in Belarus is justified for many Russians by the law “On the Union State”. Citizens of the Russian Federation can work in Belarus, and Belarusians can work in Russia without having to obtain additional permits. A considerable number of Russian residents moved to Belarus for permanent residence or temporary work.
Economy of Belarus and labor market
Paying wages to people depends on the performance of the economy of the country in question. In particular, this applies to Belarus. Under the Soviet Union, the republic was considered an agricultural one, with a strong industrial base. Decades have passed, but the republic maintains the level of industrial development and is distinguished by high-quality metal processing and mechanical engineering.
Wage payments in the republic are variable. The state of affairs in Belarus is influenced by two indicators:
- Region of residence. There may be a discrepancy in payments up to 2 times;
- The area of work in which a person is employed. High salaries in finance and industry, low in agriculture.
Some regions receive additional funds from the budget to help people live normally. In 2018, the country's economy is not undergoing the best changes. The advantage is the growth of average wages, the disadvantage is the emergence of unemployment and rising prices. Inflation plays a role, given that the country is now in 14th place in the overall ranking of countries for this indicator.
Some areas receive funds to help them live normally
The Agreement on the Union States has not yet allowed the introduction of one currency in two countries - Russia and Belarus; they have not united. The Belarusian ruble is equal to approximately 30 Russian rubles. In many sources, data is given based on Belarusian rubles, not Russian ones, which is important during calculations. Salary levels in Belarus vary greatly, depending on several factors.
Territorial distribution of average wages
Statistical data was reviewed to obtain information. High payments this year were noted in the Soligorsk district, Minsk region. There, the average salary of one resident is approximately 1,200 Belarusian rubles. The same figure in Minsk is 1,100 rubles. The minimum payment in the Vitebsk region is 450 rubles. The difference is justified by the activities of the region. Industry is developed in Minsk; potassium salt is produced in Soligorsk. Vitebsk is an agricultural region.
Statistics show that the average salary in Belarus is 733 Belarusian rubles. The indicator differs greatly depending on the region where a person lives. Detailed information can be found in the table. When converting salaries into Russian rubles, the relevant amount is 23,000 rubles.
Salaries depending on the field of activity
The industry where a person is employed plays a role. The most popular areas in Belarus this year are trade, engineering, programming, pedagogy, and medicine.
Salaries in Belarus directly depend on the chosen profession
The relevance of a direction does not mean receiving huge amounts of money for working in it. High salaries were noted for programmers and managers - up to 2,500 Belarusian rubles. Teachers receive approximately 540 rubles, and doctors - 615.
Belarusian pensions
Pensioners can count on certain benefits after completing their work experience. There are two charging options:
- Social benefits for the unemployed;
- Labor pension. The minimum length of service relevant for its calculation is 15 years. Men retire at the age of 60, women at 55. Taking into account the special working conditions, this threshold is reduced. The question is relevant for athletes, military personnel, and pilots. The pension is based on the amount paid by a resident of the country to the Pension Fund of Belarus. The minimum amount issued to a pensioner is equivalent to 5,500 Russian rubles.
$500 per person
The main task of the country's government is to bring the minimum wage to the amount of $500 per month per working person. Achieving this goal is set for December of this year. Attempts by the country's leadership to obtain the necessary indicators are based on:
The advantage is the constant growth of wages in the Republic. Over the course of 10 years, payments actually increased 13 times.
Belarus is an attractive place for many people to live, allowing them to guarantee a decent level of wages. Existing problems in the economy do not act as a global reason for refusing to move to the republic. Decent earnings in common areas are relevant here.
Demand for professions in Belarus
As stated above, the work of a doctor is relevant and prestigious. The profession is in demand, the shortage of doctors is growing, and salaries in the industry are not increasing. The average payment to an employee per month is 900 Belarusian rubles. Medical personnel have 670 rubles, junior medical personnel - 500 rubles.
The job of a doctor is the most in demand in Belarus
Payments to medical workers are based on several indicators:
- The basic rate, based on tariffication. Additional payments from 5 to 40% are possible, depending on the chosen industry;
- Extra charge. Issued for continuous work experience, category, qualifications of a physician;
- Surcharge. Overtime, night shift, weekends, holidays. For night shift work you are entitled to an additional 40% of the salary per shift. As an intern supervisor, you are paid an additional 45% of the base rate, the amount depending on the number of students.
Sphere of low wages
This includes teachers. Their payments depend on the region of residence. The highest payment in the capital is 367 rubles. Salaries in nurseries and kindergartens are low. The maximum payout is 300 rubles.
It's convenient to be a military man
Payments to the military of Belarus in comparison with the Russian Federation are actually 5 times less. The lieutenant's payments start at 725,000 Belarusian rubles, the head of the ministry department receives 4.6 million rubles. The current year assumes an increase in military salaries, an increase is only expected.
Standard of living of people in Belarus
We can talk about the benefits of living in the country based not only on salary payments. A lot of parallel factors play a role. Utility bills, costs, food, and current expenses have a significant impact. Let's study the indicators in order.
- Housing. Everyone has the opportunity to rent an apartment in Minsk. When comparing with Moscow, the difference is approximately 2.5 times. Good rental options will cost approximately 13,000 rubles. Prestigious areas - approximately 20,000 rubles.
- Utility tariffs. Electricity consumption assumes a certain tariff schedule, depending on the amount of energy consumed, time of day, and volume of consumption. Compared to Russia, the payment is almost two times lower. Maintenance of a one-room apartment in the capital of Belarus will cost approximately 2,000 Russian rubles.
- Additional expenses. Approximately 800 rubles are spent monthly on the Internet, $10 per month is spent on mobile communications.
- Food. The food basket is more accessible than in the Russian capital. When going to a cafe, the average bill for lunch or dinner will cost approximately 500 Russian rubles. A visit to a restaurant can cost you 1,000 rubles. An average get-together at a fast food restaurant will cost 350 rubles.
- Transportation costs. A taxi within the capital costs 200 rubles. Travel by bus is 16 rubles, by metro - 18 rubles. Savings are achieved when purchasing travel tickets.
Low wages in Belarus are justified by affordable prices in comparison with the Russian Federation for products, services, real estate, and utility costs. Despite the proximity of two countries - the Russian Federation and Belarus, the standard of living in them is noticeably different.
Renting an apartment in Belarus is two times cheaper than in Russia
There is a difference in people’s mentality, attitude towards each other, and so on. Over the past decades, the republic has been and remains a place where a lot of Russians move for permanent residence and work.
Video on the topic: Salaries in Belarus
- When are taxes paid to the simplified tax system?
- Notifications about opening an account are no longer submitted to the tax office. Notifications about opening an account to the tax office.
- What shows and how to calculate Account 70 in the accounting
- Statute of limitations for identifying arrears on insurance premiums