The living wage is the required minimum financial income per person that is required to ensure the normal functioning of the human body and maintain he alth.
Essentially, this is the amount of money that is required to purchase a set of the most necessary food and non-food products, as well as certain services that are needed to meet the basic needs of a person.
This article will tell you about the methods for determining the named value and how it is calculated. In addition, we will try to answer the question of what is the cost of living in Voronezh, how many rubles it is for different segments of the population.
Elements of the living wage
The subsistence minimum consists of two elements: physiological and social. A physiological parameter is a monetary expression of the minimum material needs vital for the existence of a person.
In world practice, it is more than 80% of the total subsistence minimum, and the rest falls on social needs - a certain set of non-material needs corresponding to the minimum acceptable level of existence. In fact, this is the amount that makes it possible to purchase the most necessary products and services that will allow you to survive.
Methods for determining the living wage
In global practice, there are several ways to calculate the living wage in the state:
- Statistical method. It defines a living wage at the level of earnings that 10-20% of the poorest citizens of any country have. But this method can only be used in high-income countries.
- Sociological method. It is based on conducting sociological surveys of people about what the minimum income should be for existence. This approach is rather advisory, since its results may not be supported by the real financial capabilities of the country, but it expresses the real needs of the population. This method shows what standard a country should strive for in economic development.
- Resource method. It proceeds from the ability of the state economic system to provide a financial minimum and is used exclusively in developed countries.
Mixed method is based on several approaches. So, the cost of products is determined by state standards, paymentutilities - based on their actual cost, and non-food products - by their percentage in total human spending
In practice, however, most governments use the normative approach. Its essence is expressed in the fact that the cost of a living wage is calculated based on the price of the minimum consumer basket. Each state has its own characteristics of the formation of the described basket. Russia also applies this method of determining the minimum cost of living in the state.
What's in the shopping cart
The cost of a conditional consumer basket of an able-bodied person in the Russian Federation (per year) includes one hundred kilograms of potatoes, 125 kilograms of bread, pasta and cereals, 60 kg of fruit, 57 kg of meat, 200 eggs and other products.
In addition to food, non-food items are also included in the basket, which should be valued at half the price spent on food. Payment for utilities and other services is also taken into account - as 50% of the cost of the food basket.
It's worth knowing that the cost of living is calculated separately for each Russian region. The economic situation in it is fully reflected in the definition of the monetary minimum. For some groups of citizens - minors, pensioners and able-bodied - this indicator is calculated separately. At the same time, it is believed that pensioners need the least amount of money.
The cost of living, of course, is a conditional value that is necessaryfor financial statistics.
What is the cost of living in Voronezh
Across the territory of the Russian Federation, the described minimum monetary value is set every quarter. Voronezh is one of the largest million-plus cities with a steadily developing economy.
The regional government, in accordance with current legislation, establishes a living wage. In Voronezh, every four months, a resolution is adopted regarding the cost of the minimum consumer basket. And families whose earnings are below this amount of money are eligible for benefits as poor.
In the third quarter of 2017, the average cost of living in Voronezh was 8,557 rubles. This is the average level required to purchase the most necessary products and services in this city.
The subsistence minimum in Voronezh for certain segments of the population
The government establishes minimum income standards for various categories of persons, based on their social status. The living wage in Voronezh for the able-bodied population is 9263 rubles. A family or a citizen living alone, whose average income is below the established minimum amount for living in a given Russian region, is considered poor and receives the right to social assistance.
The conditions and procedure for providing this financial assistance to the poor are established in accordance with regulatory documents.
Yes,the living wage for a pensioner in Voronezh is 7,176 rubles. According to public opinion polls, this amount does not correspond to the real consumer spending of the population. At the same time, officials believe that basic state support should always be at a minimum level so as not to provoke dependency as a form of antisocial behavior.
However, the state must necessarily take care of a decent standard of living for children. At the moment, the cost of living for a child in Voronezh is 8399 rubles.
Factors affecting scoring
When calculating the cost of living, the following factors should be taken into account:
- Economic, which include the norms of economic development: creating a basis for the functioning and promotion of market relations, developing trade with foreign countries, improving labor relations, measures to increase the state budget.
- Legal - observance in the state of universally recognized human rights, according to the Covenant "On Economic, Social and Cultural Rights". This international document fixes the right to work and its decent pay for every able-bodied person.
- Social - the average level of wages, the establishment of a relationship between wages and productivity, an increase in minimum wages and pension payments, which should be guaranteed by the state with a gradual approach to a decent level.
Why do we need to calculate the living wage
This financial value is a social standard,which reflects the economic situation in the country. The authorities often use it to develop many social programs to support the population. Based on the size of the subsistence minimum, the size of the minimum wage and retirement pension are determined.
The state also uses this financial indicator in the formation of the budget and tax policy in general, allowing, for example, not to tax persons whose income is below the named minimum. The amount of financial support, child benefits, unemployment benefits and other social benefits are calculated based on the named indicator.
Conclusion
According to experts, the subsistence minimum in Voronezh is the average for the country, not fundamentally different from neighboring regions. The local government is constantly taking measures to increase this important social and financial indicator. The minimum subsistence level in Voronezh per capita in 2018, according to new government decrees, will be 8637 rubles.
