Optimization of payroll funds in construction industry

Abstract

This study analyzes a new method for determining the minimum subsistence level based on the median wage in regions with the purpose of exploring the impact of this method on payroll funding in construction industry. The research methodology involved economic and statistical analysis, system analysis, as well as integration of theoretical and practical knowledge. The authors analyzed payroll fund as part of the cost estimate documentation and the wages stipulated in the “Federal Industrial Agreement on the Construction and Building Materials Industry of the Russian Federation, 2020-2023”. The authors analyzed the new method proposed by the Russian Government for determining the minimum subsistence level on the basis of the median wage, explored its advantages and disadvantages, and introduced ideas for its optimization. According to the results obtained, the changes introduced in the method for calculating the minimum subsistence level in 2021 failed to produce the expected results. The method needs to be improved in the following part. The official indicators of regional median wages should be calculated at least quarterly and posted on the official website of Rosstat. The method should justify the percentage (44.2%) adopted for the calculation of the minimum subsistence level based on the median wage. In addition, a low threshold should be established for the minimum subsistence level in a region equal to the cost of the market basket. In order to be calculated accurately, the cost of the market basket should be adjustable in terms of the content of all its sections.