Difference in civil servants and private workers’ salaries to hover around 20% in Russia

Author: Agatha Idrisova Section: Major Events of the Month

Issue: April 2012, Vol.7, No.4

Tags: Fomichev

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Salary Differentiation 

Civil servants’ wages should be 20% lower those in private companies, the Economic Development Ministry said. Speaking on the issue, Deputy Minister Oleg Fomichev noted that people often go to the civil service for stability, as there is no risk as in the business sector, social package, status, career growth opportunity, etc. “Given this specificity, the level of civil servants’ wages should be lower than in business sector. But the gap cannot be too wide; otherwise public workers will lose incentive to work.” Currently, the gap in wages is, on average, over 30%.