Average pay in Belarus fallen since December 2013
According to the National Statistics Committee, in June 2014 the average salary in Belarus was BYR 6 198.5 thousand, or USD 608.
In December 2013, the average salary was USD 615, meaning that wage growth is restrained in the public sector and wage growth capacity is limited in the private sector. Retail sales are anticipated to slow down, as well as their positive influence on GDP growth. Labour outflow to the Customs Union and other countries will increase, and the share of expenditure on services in household consumption will rise due to higher prices. Civil servants’ wages will be increased, but not enough to compensate for the inflation rate.
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.