MOSCOW, March 26 (RIA Novosti) - Pensions will increase 250 rubles ($9.60) from April, the health minister said Monday.
Despite Russia's recent dramatic petroleum-led economic growth, an estimated 20% of the population still lives in poverty. The minimum monthly pay is 1,100 rubles ($42), but at least 10% of public-sector workers have to survive on wages below that level. The average pension is 2,839 rubles ($109).
"From April 1, the base pension rate will rise 7.15%, and the insurance rate 9.5%, making the pension grow an average 250 rubles," Mikhail Zurabov said.
He said the pension rise will affect 36 million people in Russia's 142.2-million population.
World War II veterans will enjoy a 550-ruble ($21) pension rise, in addition to extra monthly payments worth 250 rubles, the minister said.
Zurabov said that the next pension hike will take place in October.
"I am not speaking about indexing pensions [to inflation], but about fixing the base pension at 1,260 rubles [$48]," he said adding that consequently, pensions would increase 430-450 rubles ($16-17) over a year.
Zurabov said pensions will subsequently be updated in February 2008. He said he hoped the measures would considerably improve pensioners' living standards.
