Living wage - the required minimum financial income per person, which is required to ensure the normal functioning of the human body and maintain health.
In fact, this is the amount of money that is required to purchase a set of the most necessary food products and non-food products, as well as certain services that are needed to meet basic human needs.
This article will talk about methods for determining the named value and how it is calculated. In addition, we will try to answer the question of what is the cost of living in Voronezh, how many rubles it is for different segments of the population.
Elements of a living wage
The subsistence level consists of two elements: physiological and social. A physiological parameter is a monetary expression of the minimum material needs vital for the existence of an individual.
In world practice, it accounts for more than 80% of the total cost of living, and the rest is social needs - a certain set of intangible needs corresponding to the minimum acceptable level of existence. In fact, this is the amount that makes it possible to purchase the most needed products and services that will allow you to survive.
Methods of determining the cost of living
In global practice, several methods have been established for calculating the cost of living in the state:
- The statistical method. It determines the cost of living at the level of earnings, which are 10-20% of the poorest citizens of any country. But this method can only be used in high-income countries.
- Sociological method. It is based on conducting sociological surveys of people about what should be the minimum income for subsistence. This approach is rather advisory, since its results may not be supported by the real financial capabilities of the country, but it expresses the real needs of the population. This method shows what standard a country should strive for in economic development.
- Resource method. It proceeds from the ability of the state economic system to provide a financial minimum and is used exclusively in developed countries.
The mixed method takes several approaches as a basis. So, the cost of products is determined according to state standards, payment of utility bills based on their actual cost, and non-food products based on its percentage of total human expenses.
In practice, most often the states use the normative approach. Its essence is expressed in the fact that the cost of a living wage is calculated based on the price of the minimum consumer basket. Each state has its own characteristics of the formation of the described basket. Russia also applies this method of determining the minimum cost of living in the state.
What is included in the consumer basket
The cost of a conditional consumer basket of an able-bodied person in the Russian Federation (per year) includes one hundred kilograms of potatoes, 125 kilograms of bread, pasta and cereals, 60 kg of fruit, 57 kg of meat, 200 pieces of eggs and other products.
In addition to products, non-food items are also included in the basket, which should be estimated at half the price they spent on food. Payment of utilities and other services is also taken into account - as 50% of the cost of the grocery basket.
It is worth knowing that the cost of living is calculated separately for each Russian region. The economic situation in it is fully reflected in the determination of the monetary minimum. For some groups of citizens - minors, pensioners and able-bodied - this indicator is calculated separately. At the same time, it is believed that the least amount of money is required for pensioners.
The cost of living, of course, is a conditional quantity that is necessary for financial statistics.
What is the cost of living in Voronezh
Throughout the territory of the Russian Federation, the described minimum monetary value is established every quarter. Voronezh is one of the largest million-plus cities with a steadily developing economy.
The regional government, in accordance with applicable law, establishes a living wage. In Voronezh, a resolution is adopted every four months regarding the cost of the minimum consumer basket. And families whose earnings are lower than this monetary value are entitled to benefits as the poor.
In the third quarter of 2017, the average cost of living in Voronezh was 8557 rubles. This is the average level required to purchase the most necessary products and services in this city.
The cost of living in Voronezh for certain segments of the population
The government sets minimum income standards for various categories of people based on their social status. The cost of living in Voronezh for the able-bodied population is 9263 rubles. A family or a citizen living alone whose average income is below the established minimum amount for living in this Russian region is considered to be poor and gets the right to social assistance.
The conditions and procedure for the provision of this financial assistance to the poor are established in accordance with regulatory documents.
So, the living wage of a pensioner in Voronezh is 7176 rubles. According to opinion polls, this amount does not correspond to the real consumer spending of the population. At the same time, officials believe that basic state support should always be at a minimum level so as not to provoke dependency as a form of antisocial behavior.
However, the state must take care of a decent standard of living for children. At the moment, the cost of living for a child in Voronezh is 8399 rubles.
Factors Affecting Counting
When calculating the cost of living, the following factors should be taken into account:
- Economic, which include the norms of economic development: creating the basis for the functioning and promotion of market relations, development of trade with foreign countries, improving labor relations, measures to increase the state budget.
- Legal - the observance of universally recognized human rights in the state, according to the Covenant on Economic, Social and Cultural Rights. This international document fixes the right to work and its worthy payment to each able-bodied person.
- Social - the average level of remuneration, the establishment of the relationship between wages and productivity, the increase in minimum wages and pension payments, which should be guaranteed by the state with their gradual approach to a decent level.
Why do you need a living wage calculation
This financial value is a social standard that reflects the economic situation in the country. Authorities often use it to develop many social programs to support the population. Based on the size of the subsistence minimum, the sizes of the minimum wage and labor pension are determined.
The state also uses this financial indicator in budgeting and in general tax policy, allowing, for example, not to tax people whose income is below the minimum. The amounts of financial support, child benefits, unemployment benefits and other social benefits are calculated based on the above indicator.
