The index is calculated as the average weighted indicator based on five parameters, measured by Goskomstat:
Average accrual salary. This indicator, in our opinion, is the main parameter which should be considered evaluating the level of salaries in the region. But as many companies pay salary without indicating it in state accounting and statistical systems, this indicator can’t reflect the real salaries market in Russia.
That’s why we used few additional indicators, which could correct the possible error. The most important of them are the average level of incomes and level of expenses. These parameters (especially the level of expenses) are less relevant to the tasks above, but provide more objective evaluation of labour market in the specified region.
The other indicators of standards of living are: living-wage and price level (based on minimal cost of food set). These factors, though they are the indirect ones, have the serious influence on the labor market, in our opinion.
The final report presents the data on the Goskomstat parameters above as well as combined index, calculated on their base.