{"id":99443,"date":"2024-08-07T12:02:05","date_gmt":"2024-08-07T09:02:05","guid":{"rendered":"https:\/\/pozirk.online\/en\/longreads\/99443\/"},"modified":"2024-08-07T12:02:06","modified_gmt":"2024-08-07T09:02:06","slug":"median-wage-truth-behind-average-illusion","status":"publish","type":"longreads","link":"https:\/\/pozirk.online\/en\/longreads\/99443\/","title":{"rendered":"Median wage: truth behind average illusion"},"content":{"rendered":"\n<p><strong>The National Statistics Committee (Bie\u0142stat) has reported low inflation and growth in exports, GDP and average wages for months. Many Belarusians are skeptical because the high pay figures often do not match their real incomes.<\/strong><\/p>\n\n\n\n<figure class=\"block-image block-image-normal\">\n\n    <img decoding=\"async\" width=\"1128\" height=\"752\" src=\"https:\/\/pozirk.online\/wp-content\/uploads\/2024\/07\/money_1128_jcomp_freepik-com.jpg\" class=\"attachment-full size-full\" alt=\"\" srcset=\"https:\/\/pozirk.online\/wp-content\/uploads\/2024\/07\/money_1128_jcomp_freepik-com.jpg 1128w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/07\/money_1128_jcomp_freepik-com-354x236.jpg 354w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/07\/money_1128_jcomp_freepik-com-734x490.jpg 734w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/07\/money_1128_jcomp_freepik-com-178x118.jpg 178w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/07\/money_1128_jcomp_freepik-com-768x512.jpg 768w\" sizes=\"(max-width: 1128px) 100vw, 1128px\" \/>\n    <figcaption>\n                    <div class=\"block-image__descr\">\n\n                \r\n\n            <\/div>\n        \n                    <div class=\"block-image__author\">\n                                <span>(jcomp \/ freepik.com)<\/span>\n            <\/div>\n            <\/figcaption>\n<\/figure>\n\n\n\n<p><strong>The National Statistics Committee (Bie\u0142stat) has reported low inflation and growth in exports, GDP and average wages for months. Many Belarusians are skeptical because the high pay figures often do not match their real incomes.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Median wage 31% lower than average<\/h2>\n\n\n\n<p>The discrepancy between Bie\u0142stat\u2019s monthly pre-tax average pay and what Belarusians actually earn is easy to explain. Income tax and social insurance deductions of 13 percent and 35 percent, respectively, are not included in Bie\u0142stat\u2019s wage figures. But that is not even the point.<\/p>\n\n\n\n<p>Average nominal pay is calculated by taking the total payroll for a period and dividing it by the number of employees. This is a simplistic approach. The median wage is a more accurate measure of public earnings.<\/p>\n\n\n\n<p>This is the line that divides employees into two groups with half having income above the median value and the other half having income below it. This is the midpoint of the payroll.<\/p>\n\n\n\n<p>In May 2024, the median monthly salary amounted to 1,688 rubels ($525), while average nominal monthly pay was 2,219 rubels ($619).<\/p>\n\n\n\n<p>Average pay was 31.4 percent higher than the median salary. The median, however, is much closer to what the majority of Belarusians earn.<\/p>\n\n\n\n<p><strong>Median salary and nominal average monthly pay in Belarus (May 2020 through May 2024)<\/strong><\/p>\n\n\n\n<p><em>Blue: Excess of average pay over the median salary, percent<\/em><\/p>\n\n\n\n<p><em>Red: Median salary, rubels<\/em><\/p>\n\n\n\n<p><em>Pink: Nominal average monthly pay, rubels<\/em><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish\"><div class=\"wp-block-embed__wrapper\">\n<iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"Interactive or visual content\" src=\"https:\/\/flo.uri.sh\/visualisation\/18751850\/embed#?secret=S6ckGS70XA\" data-secret=\"S6ckGS70XA\" frameborder=\"0\" scrolling=\"no\" height=\"575\" width=\"500\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p><em>Source: Bie\u0142stat<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Gap closing at high cost<\/h2>\n\n\n\n<p>Average nominal monthly pay increased by 19.2% and real inflation-adjusted monthly pay by 12.8% over the year, according to May 2024 data.<\/p>\n\n\n\n<p>The median salary rose by 20.5%. The gap between average pay and the median salary narrowed from 32.9% in May 2023 to 31.4% in May 2024.<\/p>\n\n\n\n<p>Thus, pay inequality decreased over the year. This seemingly positive development has downsides.<\/p>\n\n\n\n<p>The trend is attributed to the departure of high-paid professionals, including doctors, IT engineers and business owners. They continue to earn high salaries abroad.<\/p>\n\n\n\n<p>The economy is being significantly supported through inexpensive and frequently unsecured capital, which includes wage raises exceeding labor productivity, cheap loans and contracts from the Russian military-industrial complex.<\/p>\n\n\n\n<p>These infusions do not provide a solid foundation for robust economic growth, and thus wage equalization is unsustainable to some extent.<\/p>\n\n\n\n<p>A breakdown reveals significant discrepancies between average pay and the median salary across industries. The greatest gap is reported in IT and air transportation.<\/p>\n\n\n\n<p>These industries rely on a relatively small group of high-paid professionals and executives whose salaries are well above the average, which has a significant effect on average pay.<\/p>\n\n\n\n<p>The smallest difference is observed in mining and metallurgy.<\/p>\n\n\n\n<p><strong>Median and nominal pay by sector<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish\"><div class=\"wp-block-embed__wrapper\">\n<iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"Interactive or visual content\" src=\"https:\/\/flo.uri.sh\/visualisation\/18752257\/embed#?secret=B8DLGphy4j\" data-secret=\"B8DLGphy4j\" frameborder=\"0\" scrolling=\"no\" height=\"575\" width=\"500\"><\/iframe>\n<\/div><figcaption class=\"wp-element-caption\"><em>Source: Bie\u0142stat<\/em><\/figcaption><\/figure>\n\n\n\n<p>Median, May 2023; Median, May 2024; Average, May 2023; Average, May 2024<\/p>\n\n\n\n<p>Sanctions, obstacles to foreign trade, domestic repression and the population exodus take a heavy toll on the economy. The benefits of pay equality are quite relative. After the Bolshevik Revolution in Russia, the extermination, imprisonment and expulsion of the rich resulted in roughly equal income for most Soviet citizens, but essentially reduced their well-being to equality in poverty.<\/p>\n\n\n\n<p>Although not as radical, Belarus resembles the early Soviet Union. Forcing competitive, high-paid and ambitious people out of the country cannot benefit the economy.<\/p>\n\n\n\n<p>If you overheat the economy, raise wages unreasonably, ask one neighbor for money and do not pay debts to another, you can create a temporary illusion of stability and growth.<\/p>\n\n\n\n<p>Even if the government keeps statistics under wraps or, even worse, makes up the numbers, analysts can see more and more negative trends, such as the labor market crisis and logistical and financial infrastructure issues.<\/p>\n\n\n\n<div class=\"insert-block\">\n\n    <div class=\"insert-block__img\">\n        <img decoding=\"async\" width=\"354\" height=\"236\" src=\"https:\/\/pozirk.online\/wp-content\/uploads\/2024\/01\/photo_2024-01-11-10.32.08-354x236.jpeg\" class=\"attachment-medium size-medium\" alt=\"\" srcset=\"https:\/\/pozirk.online\/wp-content\/uploads\/2024\/01\/photo_2024-01-11-10.32.08-354x236.jpeg 354w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/01\/photo_2024-01-11-10.32.08-734x490.jpeg 734w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/01\/photo_2024-01-11-10.32.08-178x118.jpeg 178w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/01\/photo_2024-01-11-10.32.08-768x512.jpeg 768w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/01\/photo_2024-01-11-10.32.08.jpeg 1280w\" sizes=\"(max-width: 354px) 100vw, 354px\" \/>                        <label class=\"insert-block__tag--mobile\"> \u0410\u043d\u0430\u043b\u0438\u0442\u0438\u043a\u0430<\/label>\n\n                <\/div>\n    <div class=\"insert-block__text\">\n                    <label class=\"insert-block__tag\">\u0410\u043d\u0430\u043b\u0438\u0442\u0438\u043a\u0430<\/label>\n                <h3 class=\"insert-block__title\">Minsk generous to law enforcers at expense of social programs<\/h3>\n        <div class=\"insert-block__descr\">The finance ministry reported a surplus of 1.6 billion rubels instead of a projected budget deficit of 3 billion rubels in 2023. The government increased spending on security forces, saving on servicing debts and social programs. Last year, revenue was &#8230;<\/div>\n        <a class=\"insert-block__btn-block\" href=\"\/en\/longreads\/95860\">\n            <button class=\"btn\">\n                <div class='btn__text'>Read <\/div>\n            <\/button>\n        <\/a>\n    <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The National Statistics Committee (Bie\u0142stat) has reported low inflation and growth in exports, GDP and average wages for months. Many Belarusians are skeptical because the high pay figures often do not match their real incomes. The National Statistics Committee (Bie\u0142stat) has reported low inflation and growth in exports, GDP and average wages for months. Many [&hellip;]<\/p>\n","protected":false},"author":46,"featured_media":98384,"template":"","rubric":[22],"class_list":["post-99443","longreads","type-longreads","status-publish","has-post-thumbnail","hentry","rubric-theviewer"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Median wage: truth behind average illusion | Pozirk<\/title>\n<meta name=\"description\" content=\"The National Statistics Committee (Bie\u0142stat) has reported low inflation and growth in exports, GDP and average wages for months. 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