Regional overview. Average wages dynamics

April 22, 2016 18:28

Wage growth is ahead of productivity growth. Only few professionals earn the declared average wage. In general, low wages remain one of the major challenges for the regional population. Sporadic unrests occur among workers demanding wages increase.

In some regions the imbalance between the wages growth and labor productivity growth is 200%. According to the Economy Ministry, in January 2013 in the Brest region real wages grew by 27.3%, and productivity by 9.5%.

The average real wage in Belarus in January-February increased by 23.2% and labor productivity – by 4%. The Economy Ministry reported that the wages growth bypassing labour productivity trend, which occurred in mid-2012 was also observed in 2013. At the same time, Belarus’ Ministry of Economy anticipates that by the year-end productivity growth will reach 109.3%, and real wages growth - 107.1%.

Table 1. Average wage dynamics in 2013 in Belarusian rubles and U.S. dollars (for the whole country)

Month

Average wage, BYR

Average wage, USD

February

4 504 840

522.1

January

4 368 023

506.2

* National Statistics Committee data. Exchange rate USD/BYR 8 630

The average wage after the declared by the President USD 500 average wage target, real wages dropped in some regions.

Table 2. Average wage dynamics in February 2013 in Belarusian rubles and U.S. dollars (regions)

Region

Average wage, BYR

Average wage, USD

Brest

3 906 826

452.7

Vitebsk

3 959 697

458.8

Gomel

4 243 512

491.7

Grodno

3 985 999

461.8

Minsk city

5 853 851

678.3

Minsk

4 728 581

547.9

Mogilev

4 011 569

464.8

* National Statistics Committee data. Exchange rate USD/BYR 8 630

Wages USD 1000 and more can be earned in the following economic sectors: software development, pipeline transportation, petrochemical production and air-communications. Specialists in 11 other types of economic activity earn USD 700 to USD 1,000: in particular, chemical industry workers, railway workers, construction industry workers.

The International Monetary Fund recommendations following its working visit in Minsk on March 14th -25th, advised the authorities to limit wage-growth in 2013 at 12%, which corresponds to the inflation target. The IMF report points out that in the past year as a result of a significant increase in salaries, “most of the competitiveness, resulting from the 2011 devaluation, was lost”.

By the year-end the government plans to increase the average wage to the equivalent of more than USD 600. Regional authorities have set even higher targets. Vitebsk Regional Executive Committee planned that by the year-end the average salary in the region should be at least USD 800.

Simultaneously, in some regions salaries are not always paid on time. For instance, on April 1st, workers of Vitebsk house-building plant went on a strike due to delayed wages payment, the workers demanded payment of their February wages.