BOFIT Weekly Review 2015/15
Russia moves to limit public sector wage hikes
On Monday (Apr. 6), president Vladimir Putin signed an amendment suspending current law on public sector wages for the next nine months. The law mandates cost-of-living adjustments keep up with inflation. The amendment also diminishes certain legally mandated adjustments in social entitlements. In light of the government’s current financial struggles, public sector wages and social benefits will only be increased in line with the government’s 5.5 % inflation assumption used in its initial draft of the 2015 federal budget.