"Additional appropriations are envisaged for 2009-2011 with account of the higher minimal wages and annual adjustment for forecasted inflation of 114.1 billion, 112.2 billion, and 121 billion roubles, respectively," Mr Zhukov said.
He noted that wages and salaries will go up for an enormous number of people - "more than three million public sector workers in healthcare, education, culture, sports, and many other spheres". He recalled that the system will start functioning on December 1 of this year, and that additional 11.6 billion roubles are envisaged for this purpose in the 2008 budget. Mr Zhukov noted that under the new system, public sector wages will not be lower than today.
"We are not only switching to the new payment principle and giving up the unified wage tariff system, but are also introducing a flexible system of incentives to upgrade the quality of labour.