Is an employer required to increase wages when prices rise
Is an employer required to increase wages when prices rise.
Consensus
- Employers in Russia are obligated to index salaries in response to increases in consumer prices.
- Salary indexing is required to preserve the real value of wages.
- Salary indexing is not equivalent to regular salary increases.
- The obligation to index salaries is not dependent on the existence of a collective agreement or local normative act, though such documents can formalize the process.
Points of divergence
- Additional salary increases based on work performance, qualifications, or other grounds are at the employer's discretion and regulated by internal documents or agreements with employees. — vm
- New regulations effective from July 1, 2026, have formalized rules for both salary payments and the withholding of bonuses, removing previous discretion from employers. — vm
Coverage (2 sources)
- Is the employer obliged to increase salary when prices rise — Вечерняя Москва
- Must an employer raise employees' salaries, explained a lawyer. — РИА Новости (Telegram)