The Committee of the state Duma approved the law on raising the minimum wage up to 7.5 thousand.

The state Duma Committee for labour and social policy on Tuesday, may 10, recommended the lower chamber of the Parliament to adopt in the first reading a bill to increase from 1 July 2016 the minimum wage (SMIC), reports Interfax.

The draft law provides for an increase in the minimum wage from 1 July 2016 20.9%, placing it in the amount of 7.5 thousand roubles a month.

Currently the minimum wage is 6 204 thousand RUB.

The initiative was supported by the Russian government. “This increase will contribute to the increase in the ratio of the minimum wage and predicted minimum subsistence level of the employable population from 53.5 percent to 64.7 percent”, — stated in the conclusion of the government on the bill.

The project was made in the lower house on 30 March the deputies, Sergei Neverov, Vladimir Vasiliev, Olga batalina and Andrei Isayev, as well as members of the Federation Council Galina Karelova and Valery Ryazansky. Batalina noted at the time that raising the minimum wage will affect about 1 million workers, of which 87% are employed in state and municipal institutions and 13% in the private sector.

First Deputy head of the Committee on labor and social policy Michael Tarasenko announced that the state Duma may consider the bill on Friday, may 13,

Speaking at a meeting of the Committee, Tarasenko stated that against the background of positive opinion of the government on the draft law “strange looking material that appeared today in the press, about belt-tightening”.

On may 6, the Ministry of economic development announced the revised draft of the macroeconomic forecast for 2016-2019. On Monday, the newspaper Kommersant drew attention to the target variant of the forecast, according to which to output on GDP growth of 4.5% in 2019, the necessary limitation of wage growth in the economy in 2016-2017, followed by compensation in 2018-2019, the reduction in real pensions by 4.8% in 2016 and 2% in 2017, with a further indexing only to inflation until 2019. These measures, according to the Ministry, “will increase the number of poor from 13.1% in 2015 to 13.7% at the end of 2017, with a peak in 2018 at уровне13,9% and a real return of income and the number of poor by the year 2015 to 2019”.