Page 81 - RusRPTJul22

4.5.2 Income dynamics
Real income in April (last available data) contracted by 7.2% year on year, making the fastest contraction since 2015. While the nominal wages showed over 9% increase, it was fully eroded by inflation. Overall in January-April real income inched up only by 0.4% year on year.
As Russia rolls out a RUB4 trillion ($67.8bn) social relief package to mitigate the economic shock of the war in Ukraine, the Ministry of Finance announced an increase in pension of by 10% at the beginning of June, the Bank of Finland institute for Emerging Economies (BOFIT) reported in its weekly update on June 10.
“The previous 8.6% increase in pensions was scheduled for the beginning of this year. The increases are intended to compensate pensioners for rising consumer prices. With regard to the increase now made, it represents compensation for the sharp jump in prices that followed Russia's invasion of Ukraine,” BOFIT reports.
Pensioners who do not work receive indexed increases in pensions. According to the government, there are about 35mn pensioners and now about 15mn are recipients of rising social benefits.
According to calculations by the Ministry of Finance, additional funds will be
81 RUSSIA Country Report October 2020 www.intellinews.com