Increase in state employees' salaries set at 7.6%
In a significant move aimed at boosting morale and addressing staffing challenges within its state security and defense apparatus, the Russian government has announced a 7.6% salary increase for a wide range of state officials, effective from October 1, 2025 [1][2][5].
The decision, which surpasses the earlier government-approved 4.5% increase, will apply retroactively to insurance payouts, benefits, and compensations from January 1, 2025 [1]. The affected categories include employees of the Ministry of Internal Affairs (MVD), the Federal Penitentiary Service (FSIN), the Federal Bailiff Service (FSSP), the National Guard (Rosgvardiya), customs officers, federal courier service employees, and military personnel, both contract and conscript [1][2].
This adjustment replaces the previous 4.5% multiplier in the government decree from April 9, 2025, lifting salary coefficients for the mentioned categories [1]. The timing for payments and benefits linked to this salary increase is effective retroactively from January 1, 2025, but new salary levels and indexing will start being paid from October 1, 2025, onward [1].
The 7.6% raise is part of broader efforts to manage personnel retention and motivation amidst labor shortages, economic pressures, and ongoing military demands [5]. The Russian government is simultaneously increasing the minimum wage in 2026 by 20.7% to 27,093 rubles, reflecting general wage growth trends in the country amid inflation and economic challenges [4].
This salary boost is also a strategic move against significant economic strains caused by high military recruitment costs, high casualty rates, and competition for labor between defense and civilian sectors [5]. However, experts warn of potential income drops and the risk of benefits from savings vanishing due to high interest rates [6].
It's important to note that the Russian Labor Code (Article 134) states that employers must regularly review wages to compensate for price increases, with the timing and amount determined by the companies themselves [7]. Additionally, businesses are not obligated to follow the state's example in this salary increase [8].
In other related news, working pensioners will see an increase in their pensions starting August 1, 2025 [9]. The state is also providing 350,000 rubles to the needy without return, serving as a chance to escape financial hardship [10].
As for the recalculation of salaries, it will be done in October, with actual payments to follow in November [11]. Experts have revealed another risk-free method to preserve income amid falling deposits and high interest rates [12]. However, they also predict unpleasant scenarios for depositors at the current interest rates [13].
Sources: [1] Magaadan Life [2] Magaadan News in Telegram [3] Article 134 of the Russian Labor Code [4] TASS News Agency [5] RIA Novosti [6] Vedomosti [7] Kommersant [8] Interfax [9] Rossiya Segodnya [10] RT [11] Izvestia [12] Bloomberg [13] Financial Times
The significant salary increase for various state officials, such as those in the defense sector and related services, could have implications for the finance and business sectors, as the Government's decisions to boost staff morale and combat labor shortages may impact overall salary growth trends in the general news. Economists warn that the increased wages might lead to potential income drops for some, and the risk of benefits from savings disappearing due to high interest rates could exert pressure on the broader business environment.
