Russians’ incomes shrink by a quarter

Official salaries in Russia decreased by 23% in April compared with March.

This estimate was made in a news release by the FinExpertiza international audit and consulting network.

In about half of the Russian regions, workers lost 20% of their earnings or more; in 18 regions, their compensations decreased by a quarter or more; and in some regions, workers faced a shortfall of about one-third of their income.

In particular, in Udmurtia, salaries fell by more than 35%; in the Vladimir Region, by 34%; in St. Petersburg, by 30%; and in Moscow, by 28.5%.

“Many Russians saw their salaries shrink in April when part of the workers was asked to transition to telework, and some sectors of the economy (tourism, catering, services, and non-food retail) were shut down. Employers said they had no other choice by to cut wages in order to save jobs. So for the most part, the statistics reflected a drop in incomes arising from industry shutdowns,” explains Pavel Sigal, First Vice President of Opora Russia SME association. “Now, as the economy in Russia is regaining its pre-crisis dynamics and industries are reopening, employers are again putting employees in their usual jobs. Many companies have also applied for state support and obtained preferential loans to back their payroll expenses. So in the near future, we can expect the labor market to stabilize.”

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