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Most Russians Earn Less Than Official Figures Suggest, Analysis Shows
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Most Russians earn significantly less than official income figures indicate, The Moscow Times reported on April 28, citing an Izvestia analysis based on calculations by the National Association of Non-State Pension Funds (NAPF).
Rosstat reported that the average monthly income in Russia reached approximately $830 in 2025.
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However, analysts say this figure is skewed by high-income regions such as Moscow (around $1,850), Chukotka (about $2,390), the Yamalo-Nenets Autonomous Okrug (around $1,880), Magadan region (approximately $1,590), and Sakhalin region (about $1,290). Excluding these regions reduces the national average by roughly a quarter, to around $660 per month.
Income distribution across the country remains highly uneven. According to NAPF estimates, 78% of Russians earn less than approximately $1,100 per month. Within this group, only 12%—around 9 million people—earn above the national average, with incomes starting from about $830. Another 11% earn between roughly $660 and $830, about 15% receive between approximately $500 and $660, while the largest group—nearly 40%, or around 30 million people—live on less than about $500 per month.
Experts say the average income figure does not accurately reflect the financial reality of most citizens. A more reliable measure is the median income, which indicates the midpoint at which half the population earns more and half earns less. In 2024, the median income stood at approximately $520, about 26% lower than the reported average of around $700. Data for 2025 has not yet been released.
Economists note that average income is highly sensitive to extreme values, meaning a relatively small number of high earners can significantly inflate the overall figure. As a result, relying on averages may distort economic policy by underestimating the scale of financially vulnerable groups.
Analysts warn that this disparity is likely to persist. Higher-income groups are expected to see continued income growth in 2026, while most Russians may face stagnation, maintaining a gap of 20–40% between average figures and the earnings of the majority.
The official outlook also points to slower income growth amid economic challenges. Russia’s Ministry of Economic Development forecasts real incomes will rise by just 2.1% in 2026, compared to 7.7% growth the previous year.
The income disparity is unfolding alongside mounting pressure on Russia’s labor market, raising concerns about broader economic stability.
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According to Ukraine’s Foreign Intelligence Service, a growing number of state-owned and private companies in Russia could begin large-scale layoffs as early as this summer. Analysts attribute this trend to increasing financial strain on businesses, driven by higher tax burdens, restricted access to credit amid elevated interest rates, and declining revenues linked to weakening consumer demand and an overall economic slowdown.
“At present, some employers are trying to avoid mass layoffs by reducing the workweek to three or four days. However, such measures are temporary and cannot offset deeper structural problems,” the statement read.
Officials warn that without a meaningful economic recovery, companies are likely to move beyond temporary cost-cutting measures and proceed with more significant workforce reductions in the coming months.
Amid growing economic strain, the Kremlin is also weighing new fiscal measures aimed at large businesses. According to Ukraine’s Foreign Intelligence Service, Russian authorities are preparing to introduce another windfall tax to help compensate the financial burden created by the war against Ukraine.
Although some oligarchs had earlier proposed making voluntary contributions to the state budget, the government is now moving toward a mandatory “excess profits tax” targeting major companies.
The proposed tax would be calculated based on companies’ financial results for 2025, with a rate that could reach up to 20%, double the level imposed in 2023. It would apply to profits exceeding the average recorded in 2018–2019, which also served as the reference point for previous windfall tax measures covering 2021–2022.
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