For 15 years, Russia has had a flat income tax rate of just 13%. Back in 2002, the government introduced a new pension system, which split the state pension into a basic safety net pension (which is financed pay-as-you-go) and an earnings-related contribution. Russia’s minimal wage is currently 6,204 roubles (£59) per month, which is 30% less than the official living wage. The legal procedure of going on strike is very difficult: in 2009, just after the financial crisis hit, Russia’s official statistics agency counted only one strike. The actual number of work stoppages was much higher, but all of them were illegal or semi-legal at best due to the prohibitive character of the strike law.
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