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Accrued average nominal wage and median wage grew by 14.1% in 2022

In 2022, the median wage, calculated on the basis of data from the Pension and Social Insurance Fund of the Russian Federation (Social Fund), was 40,368 rubles, up 14.13% compared to 2021. The accrued average nominal wage, calculated by Rosstat, was 65,338 rubles, a 14.14% increase over the previous year.

The median wage differs from the average wage, which is also calculated by Rosstat, since the calculation methodologies and amounts of input data are different. The median wage, calculated on the basis of data from the Social Fund, represents the real average monthly wage per work place that falls right in the middle of the ranking series of such payments. In other words, if there is a company or an organization with 201 employees and all wage payments to all employees are ranked and arranged according to the increase or decrease in the money received, the median wage based on data from the Social Fund corresponds to the payment received by the 101st employee. Consequently, 50% of staff, or 100 people employed in this organization, received less than the median (the amount paid to the 101st employee) while another 50%, or other 100 employees, received payment more than the median.

The accrued average nominal wage, calculated by Rosstat, represents the average of all payments received by an average employee from all places of work for a full month of work.

However, there are a number of other factors affecting the final value. Specifically, when calculating the accrued average nominal wage:

  • Rosstat does not take into account royalties; one-off payments; business travel expenses; lump sum allowances, payments (including compensation payments) to women on maternity leave, compensation to an employee for material costs for the use of personal vehicles and other property for official purposes, expenses (including scholarships) for training and retraining of employees studying in educational institutions and some other payments;
  • Rosstat records hours worked and calculates the wage in full-time equivalent. The Social Fund, on the other hand, reflects the amounts paid this month, regardless of how long the employee worked - one day or all 24 working days;
  • If a person works at several places of work, when calculating the accrued average wage, all the payments received during a month are summed up. When using the data on the average monthly wage per one job, provided by the Social Fund, each payment becomes an element of the ranked series, which reduces the amount of wages received by the employee during the month and the median as a whole.

Rosstat calculates and publishes a wide range of indicators on wages and wage growth rate both for the country as a whole and for industries, regions, socio-demographic groups of the population. Each of these indicators provides the opportunity to focus on certain issues in social policy in the field of employment and make informed management decisions.

For instance, the accrued wage represents all the payments received by an average employee for a full month of work that allows one to compare employees from different regions and fields of activity.

In turn, the median wage, calculated on the basis of data from the Social Fund, has been the basis for the approval of the minimum wage (SMIC) by the Government since 2021. In the second half of 2022, the minimum wage was 15,279 rubles. Since January 1, 2023, it increased to 16,242 rubles per month.

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