No Dreams of Wage Increase Allowed in Next Five Years In Belarus

• 18.04.2016, 13:00

Belarus' government has had a bright tendency to plan a wage increase.

In 2005 it was planned to reach an average salary of $250, in 2010 personal income should have reached $500, in 2015 - up to $1000.

First to options turned to be a reality, however, the third one has failed. The program of socio-economic development for 2016-2020 lacks ambitious goals on personal income increase, Belorusskie Novosti reports.

Salaries in dollar's equivalent are not going to increase. The program mentions only the increase of the real income, a meager one.

The real income (adjusted for inflation) is subject to increase by 10.9% in 2016-2020. For example: the nominal wage exceeded the inflation by 41% in 2011-2015. Thus, the personal wage increase will be poor, if to compare with the previous 5-year plan.

Another indicator directly connected with personal income is expected to face a visible slow down. The Program implies the retail turnover increase only by 12.5% within next 5 years, last time it equaled to 55.9%.

Thus, the conclusion is that now the government expects neither a consumer boom nor decent personal income increase. The draft Program for 2016-2020 is developed with reference to 1-3% increase of the real (adjusted for inflation) salary and retail turnover per year.

The draft document, that is about to be adopted by the All-Belarusian People's Meeting, implies that the salary increase is strictly connected with the labour efficiency growth. So the low salary growth is not a surprise.

The Program does not mention pensions at all. There is only a guiding point showing that an average retirement pension will make up 40% of an average salary in the country. It is not planned to increase the number.