11. Labor Policies and Practices

The Russian labor market remains fragmented, characterized by limited labor mobility across regions and substantial differences in wages and employment conditions.  Earning inequalities are significant, enforcement of labor standards remains relatively weak, and collective bargaining is underdeveloped.  Employers regularly complain about shortages of qualified skilled labor.  This phenomenon is due, in part, to weak linkages between the education system and the labor market and a shortage of highly skilled labor.  In 2019, the minimum wage in Russia was linked to the official “subsistence” level.  As of April 2020, this  was RUB 12,130 ($162).

The 2002 Labor Code governs labor standards in Russia.  Normal labor inspections identify labor abuses and enforce health and safety standards .  The government generally complies with ILO conventions protecting worker rights, though enforcement is often insufficient, as labor inspectors are over-stretched.  Employers are required to make severance payments when laying off employees in light of worsening market conditions.

Investment Climate Statements
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The Lessons of 1989: Freedom and Our Future