Russians warned about stopping wage growth

Real incomes of Russian residents next year will grow by only 1-2%. The economy is entering a stabilization phase, which is why wage growth will be “significantly lower” than in previous years, said Kaplan Panesh, deputy chairman of the State Duma Committee on Budget and Taxes.

“The largest salary increases, by 10–20%, are projected in strategic and high-tech sectors such as the defense industry, IT, especially for artificial intelligence and cybersecurity specialists,” Panesh noted.

Incomes will increase least of all in retail trade, public catering and a number of other industries. Panesh called for a realistic outlook for next year, as the slowdown in income growth is consistent with the goal of containing inflation and “transitioning to sustainable development.”

The majority of Russians (58%) earn less than 60 thousand rubles per month, as stated in the Rosstat report for January-October 2025. However, this level of income no longer suits citizens. Back in the summer, people said that they did not consider a monthly salary of 60 thousand rubles worthy, said the head of the pro-government Analytical Center VTsIOM Valery Fedorov.

“People want a decent life. And they will find ways not to receive 60 thousand rubles, because 60 thousand rubles is not a dream even for the poorest region of Russia. It’s no longer a dream,” Fedorov noted.

In 2026, the VAT rate will increase to 22%. This is a basic tax, the increase of which will affect the cost of all goods and services in the country. According to the Russian government, this measure will bring the state budget almost 1.2 trillion rubles. They are going to be used primarily “to finance defense and security.”