The government plans to gradually bring minimum monthly pay into line with the subsistence level by 2011. According to estimates for 2007, an average Russian needs around 4,000 rubles ($155) a month to survive.
The minimum wage rises have been more modest over the past years. Last time the monthly pay increased 37.5% to 1,100 rubles ($43) in May 2006. In 2005, the rate was 720 rubles ($28 at the current exchange rate).
Health Minister Mikhail Zurabov said a further rise in the minimum wage could put a strain on pay scales and trigger redundancies in public sector organizations, as employers will find it unprofitable to pay low-skilled workers higher wages. A sharp wage rise could also deal a heavy blow to regional budgets.
According to statistics, over 15% of Russians live below the subsistence level.
