Russia's Finance Ministry: 10% of state employees to be cut

Russia's Finance Ministry: 10% of state employees to be cut

The Russian government will start to reduce the number of state employees and raise wages to a competitive level next year, Russia's First Deputy Finance Minister Tatyana Nesterenko said in a speech to the Federal Treasury.

According to her. the number of regional governments’ employees will be cut by 5% in 2020, by 10% in 2021, and the number of the staff of the federal government by 10% over the two years.

"We are doing this to find the resources to change the wage system,” Prime news agency cited Nesterenko as saying. "We cannot spread the decision to increase wages to this large, burgeoning state management system."

She noted that the government aims to make government’s wages competitive, adding that without optimizing the number such decisions cannot be implemented, it takes a lot of money.

The key component of the reform is to raise the permanent part of wages to 60% of the payroll and cut the floating, stimulating part to 40%. "Now this pyramid is inverted," the Russian First Deputy Finance Minister concluded.

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