Wages fall to USD 550 per month
In January 2014, wages fell by 9.1% compared to December 2013.
This was partly due to the bonuses paid out at the year-end. Lower incomes will reduce the pressure on the currency market, will deteriorate the dynamics in retail trade, will change the composition of the consumer basket by shifting consumer demand towards less expensive goods, and will increase domestic and international migration of labour.
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.