Uzbekistan's economic indicators are growing rapidly. Nevertheless, the income of the population in this country is much lower than in highly developed countries. Also, the indicators of average wages in different regions of the country lag far behind the incomes of residents of the Russian Federation. Uzbeks have to save money by carefully allocating funds to meet basic needs.
The state leadership regularly takes measures to protect the population from poverty, gradually increasing the minimum wage, as well as social benefits. In 2018, the minimum wage in Uzbekistan was increased once again. Let us consider in more detail the size of the minimum income of the population today, as well as the size of the average salary in different regions of the Russian Federation.
Last changes
If you need to know what is the minimumsalary in Uzbekistan, it is worth taking a look at the latest changes in legislation. On October 13, 2018, the President of Uzbekistan signed another law regulating the amount of the minimum wage and other social benefits. Wages in Uzbekistan have been doubled this year. The increase took place to compensate for the decline in incomes of the population due to inflation, as well as to improve the quality of life in the country. The following numbers are currently relevant:
- 202 730 soums – the minimum monthly wage;
- 396 500 soums - the amount of the minimum monthly old-age pension and benefits for disabled since childhood;
- 243 300 soums - the amount of the minimum allowance for disabled persons with insufficient work experience.
It is worth noting that 1 minimum wage in Uzbekistan this year amounted to 149,775 thousand soums per month. The latest increase increased the minimum wage by more than 25%. In foreign currency, the income of the country's population increased insignificantly due to inflation processes.
How the wage increase works
The minimum wage in Uzbekistan for employees of state-owned enterprises will be funded from the state budget. The Decree of the President of the Republic spelled out the rules for recalculating wages for employees of budgetary organizations under the new legal requirements. This became a guarantee that every employee of state-owned enterprises received a promotion in a timely manner.
New lawentered into force on 1 November of the current year. By this time, heads of private enterprises must recalculate wages without fail. The increase in benefits for pensioners, students, the disabled and other financially vulnerable categories of the population will be carried out at the expense of the resources of the Pension Fund, which is under the jurisdiction of the Ministry of Finance of Uzbekistan.
Minimum wage in private enterprises
According to the decree of the President of Uzbekistan I. Karimov dated October 13, 2018, the minimum wage in Uzbekistan should be increased not only for public sector employees, but also for enterprises that are self-supporting. Entrepreneurs are prohibited from violating the deadlines established by law. Starting November 1, salaries must be recalculated, and funds for an increase can be obtained through the implementation of the following measures:
- reducing production costs;
- improving production efficiency;
- improving the quality of organizations.
The implementation of the increase in the minimum wage at enterprises is possible by reducing material costs, which make up a significant share in the accounting estimates of most companies. These costs can be reduced by introducing new production technologies, reducing scrap and increasing production volumes.
Single tariff scale
As you know, the minimum wage in Uzbekistan not only sets the lowest wage threshold, but also affects the amountsalaries of qualified personnel, which is calculated according to a single tariff scale. This is an official document that specifies the payroll ratios for workers of various grades and office staff.
According to the decree of the President of the Republic, after the increase in the minimum wage, the coefficients in the tariff scale should be preserved. This means that the income of the entire population of the country will increase.
Average salary in Uzbekistan
To objectively assess what the salary is in Uzbekistan, you need to consider the average income of the population of this country. In 2018, the average income of the population of Uzbekistan slightly exceeds the mark of 1.5 million soums, which is equivalent to approximately $130 per month.
The minimum wage in Uzbekistan does not quite objectively reflect the real incomes of the population. In the private sector, wages are much higher than in the public sector. Also, salaries vary greatly from region to region. Rural areas are the poorest when urban average incomes approach the global average.
Salary in Uzbekistan by city
The quality of life of the population in different cities of Uzbekistan is very different. Let us consider in more detail the size of the average wage in the largest settlements of the country.
Andijan
Residents of this city on average receive $180 a month. At the same time, Andijan is characterized by rather high prices for food products. Kilogram chicken fillet herewill cost about $3.3, a bun can be bought for 13 cents, and for lunch in an inexpensive cafe you will need to pay an average of $2.5. Smokers get an extra 70 cents per pack of cigarettes.
Shavat
In Shavat, the average income of the population is slightly higher at $215. Food here is also a little more expensive. A kilogram of chicken fillet will cost about $4.6, the average cost of a loaf of bread is 69 cents. The region is characterized by a relatively high cost of housing. For 1 square meter of living space, you will have to pay at least 680 dollars. Young people can rarely afford to buy their own housing, which is why rental property is in high demand.
Bukhara
The standard of living in Bukhara is considered one of the lowest in Uzbekistan due to a combination of low incomes and high prices for food, transport and housing. The average resident of this city receives 180 dollars a month. Nevertheless, it is almost impossible to go to a cafe for less than $6.5 in this locality. Real estate prices are the same as in Shavat, but grocery store prices are even higher despite lower wages.
Samarkand
The average income of the population in this locality is slightly higher than in the previous one. In this city, residents receive about $207, but the cost of food here is one of the highest in the country. The average price per kilogram of chicken fillet will be $11. A pack of cigarettes costs about2 $. A square meter of living space costs approximately 580 conventional units, which is slightly cheaper than other major cities.
Tashkent
The standard of living in the capital of Uzbekistan is much higher than in most other cities. Here, the average resident receives about $200 per month, but this income is quite enough to buy food, travel and housing due to affordable prices. The expenses of the population here are quite consistent with the income of the population.
The poorest city in Uzbekistan
The lowest average wage in Uzbekistan is typical for the city of Urgench. Here, this figure is at the level of 123 dollars, which is much less than other large settlements. At the same time, food and housing in the city are quite expensive, which is why residents have to save a lot.
Having understood how much the minimum wage in Uzbekistan is, we can draw conclusions about the standard of living in the country. Although the minimum income of the population established by law is low, the average salary in large cities allows their residents to provide themselves with everything they need, buy the necessary things and even modern equipment.
