Russia bumps minimum wage, pensions

Soaring oil prices free up some cash for 2005 budget

The Russian government is increasing the minimum wage by 20 per cent to 720 roubles ($32 Cdn) starting in 2005.

The government also announced it is going to increase old-age pensions by 250 roubles ($11 Cdn) per month next year, according to ITAR-TASS.

Russia’s finance minister, Alexei Kudrin, said the government can afford the increase because of soaring oil prices. The government had counted on oil hanging around the $28 US per barrel price range, but it has recently soared into the mid-$40 range.

With the increase in pensions, the government is hoping to keep 2005 average pensions above the subsistence level by five or six per cent.

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