Anticipated modest wage increases for majority of employees in May 2025
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Get ready for a slight adjustment in your May paycheck in Russia, folks! Here's the scoop:
You've likely noticed that your advance payment for work in May has been on the smaller side. But don't sweat it! The good news is that the remaining part of the May salary, to be received in June, will compensate for the reduced advance. Let's dive into why this happens.
First things first - let's understand how our take-home pay is calculated. By law, the employer splits it into two parts. The first portion, for the first half of the month (1-15), is paid at the end of the month, and is colloquially known as an advance. The second portion, for the second half of the month, is settled at the beginning of the following month.
Over the years, both parts of the salary have been roughly equal, thanks to the regular income tax deductions from both the advance and the salary (previously, taxes were deducted monthly, causing one of the salary halves to be less). But exceptions exist.
Ekaterina Agaeva, the big boss at the job search and recruitment service GdeRabota.ru, has the scoop on this one. She reveals that with holidays and time off, the number of working days in the first half of the month can vary. This leads to a smaller advance payment. For instance, in May 2025, there were only 7 working days from May 1 to May 15, compared to 8 days in the previous year.
STAY TUNED:
Now, let's consider Anna, our friendly manager with a monthly salary of 100,000 rubles (before tax). According to our expert, calculations for the advance payment are based on the formula (salary / working days in the month) x actual working days - NDF. Plugging in our numbers for Anna, we get 33,833.33 rubles for the first half.
But fret not, as the technicalities of the advance payment don't affect the total salary for the whole month, tweets Ekaterina Agaeva. The total payment remains consistent. Using Anna's numbers, we can anticipate a total salary component of (100,000 / 18) x 11 - 13% = 53,166.67 rubles.
RAISE YOUR BUDGET GAME:
In conclusion, keep an eye on these factors when organizing your budget.
It's important to note that these calculations consider a standard salary earned over a typical five-day workweek with two days off. Folks on alternative schedules may experience variations.
For example, those on a 2/2 schedule (two workdays/two days off) will earn more in May, considering the likelihood of workdays falling on holidays. By law, work on holidays must be paid out at double the rate, regardless of the employee's work schedule.
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In the realm of personal-finance and business, it's crucial for employees in Russia to understand how their salaries are structured. The advance payment for work, like in May, might be smaller due to the number of working days in the first half of the month, but the remaining part of the salary, received in June, will compensate for this adjustment. Hence, when organizing a budget, it's essential to consider these variations in pay.
