2014 living wage budget

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

For many citizens of Belarus, the subsistence minimum budget, the minimum wage, the average wage, the base value are concepts that mean the same thing. In a country where there is a huge number of incomprehensible designations, people very often confuse economic terms, explaining to colleagues and acquaintances what is not clear. If the subsistence minimum budget is responsible only for the critical poverty line and is designed for one person, then the base value affects fines, benefits and other mandatory payments. In a nutshell, it is very difficult for a person who knows nothing about economics to understand, so below will be described why BPM cannot be called a minimum wage.

What is BPM

Every three months the government approves the living wage budget. Over the past ten years in Belarus, he has never fallen. The amount is set depending on the prices of the last month in each quarter. BPM, set for three months (quarter), according to the government, is the critical minimum that one person needs,to survive. BPM is not equal for all segments of the population. It is calculated separately for pensioners, disabled people, children under three years old, children from three to eighteen years old, and the working population.

If you carefully study all the statistics over the past five years, then every three months the BPM rose by 30,000-70,000 Belarusian rubles. On average, every quarter you can expect that the budget of the subsistence minimum in Belarus will rise by fifty thousand Belarusian rubles. A new amount is set every four times a year, these are:

- from February 1 to April 30;

- May 1st to July 31st;

- August 1st to October 31st;

- November 1 to January 31.

What influences BPM

Before the introduction of the new law, which came into force in February 2013, the BPM affected the amount of child allowance. A mother raising one child up to three years old and who was married received only one subsistence minimum budget. This value also affects the payment of assistance to low-income citizens - the so-called targeted assistance.

Suffer from the increase in BPM and employers who have wage arrears. The amount of retention on debt depends on the size of this indicator.

Each new mother after childbirth receives material assistance for a newborn child. For the first child, 10 BPM is paid, for the second and subsequent children - 14 BPM. Also, mothers are credited with 1 subsistence minimum budget if up to 12 weeksshe was registered with the antenatal clinic and throughout her pregnancy followed all the instructions of the attending physician.

Calculation of retirement pensions, scholarships and allowances, but already as a percentage, also depends on this economic indicator.

Social payments and BPM

Targeted assistance is awarded to low-income families. Basically, these are families where the child is raised by one of the parents, but there are also full families in which the father receives the minimum wage, and the mother, for example, is on maternity leave. They do not have enough allowances and the minimum wage, and one of the applicants for assistance is paid the missing amount of money for each family member. To do this, take into account the minimum living wage budget, which is set in the country at the time of application.

Targeted assistance is paid within 6 months from the date of application. In six months, the BPM will have time to double, which means that with each increase, the family will receive more targeted assistance.

What is BPM enough for

Every three months, the Ministry of Labor and Social Protection of the Population calculates in percentage terms what mandatory expenses each citizen of the Republic of Belarus needs. It depends on the rise in prices.

The biggest waste is food. They should take up to 54.9%. Next come utilities, payment for electricity, gas, telephone and water - this is 15%. Clothing - 17.6%. Transport and household services (travel, calling a plumber,electrician, etc.) - 6.4%. Goods intended for domestic and economic use - 3.3%. Payments and contributions - 0.6%. Medicines and essentials - 2.2%.

If we talk about exact figures, then the budget of the living wage in Belarus since February 1, 2014 amounted to 1,128,100 rubles. It turns out that we can spend a little more than 28,000 rubles a month on medicines and other sanitation.

Minimum Consumer Budget and BPM: What's the Difference

The economic indicator - the minimum living budget - is often confused with the name of the indicator - the living wage budget. Belarus 2014 in February provided the difference between the two erroneous terms. BPM, as already mentioned, amounted to 1,128,100 Belarusian rubles, when the BPM on the same date was 480,690 rubles for a family of 4 people.

The difference between these two figures is that the first tells us about the critical minimum that a person needs to survive every month, and the second economic indicator is the level of social survival. It is believed that the minimum consumer budget should be enough for a person not only to survive, but for this amount he can even afford to have a child. Needless to say, "allowing to have" and "actually raising a child" are different concepts.

Citizen empowerment and economic performance

How much this or that value will rise or fall depends only on the capabilities of the state itself. living wage budgetBelarus, for example, depends on rising prices, other economic indicators - on the efficiency of citizens, on taxes that are paid to the treasury, on "black" profits. Some payments are tied to the BPM, some to the base value, something is paid based on the minimum wage. Ultimately, there is no difference. If the government revises the law and decides that fines should be paid not in basic terms, but in other economic indicators, then it will be so. At the same time, most residents of Belarus will not even replace changes in the law. The amount before and after the change will remain the same, only the names of the calculation and the method of calculation will change. It is very difficult to say how good or bad this will be for an ordinary citizen of the Republic of Belarus.