Moscow News
www.MoscowNews.ru
November 2, 2009
The cost of the good life
By Andy Potts
Forget the $64,000 question - 62,000 roubles represent the answer to life in Moscow.
According to a survey from insurance company RosGosStrakh's strategic research centre, that's the monthly salary that Muscovites consider necessary to live a "decent life" in the Russian capital.
At current exchange rates it represents $2,122.80 - or $25,474 a year - some way below the average gross salaries reported in 2008 in the US ($39,527) or the UK (GBP31, 300).
And when you look at last year's averages for London (GBP46,000), New York state ($44,810) or Washington DC ($47,370), life in Moscow seems almost cheap.
But while 62,000 roubles appears to be the magic number, average salaries in the city are barely half that according to figures from Moscow's department of economic policy and development. The average real salary is 31,600 roubles, RIA Novosti reported.
Moreover, incomes are falling - the average take-home monthly salary has dropped 2.9 per cent since the start of the year - although Moscow wages are still 1.75 times the national average.
So is it a realistic figure? And should anyone consider taking a job in Moscow for 62,000 - or even less? According to Teri Lindeberg, CEO of Staffwell recruitment agency, the survey is correct, especially for the average Russian.
"A young single expat willing to live an average Russian lifestyle would also be able to get by on similar salaries, and many do," she said. "A $500 studio apartment or shared accommodation, metro transportation, economical dining, minor needs for personal expenses, one trip home a year and visa costs should all be covered by a $2,000 to $2,500 a month salary in Moscow."
However, more experienced and skilled staff will require a better deal than this.
"To entice an expat to work in Russia the offer must be greater than what they are currently earning - or have a big upside attached to it," she added. "Most expats prefer their entire compensation in cash, but a lot of companies, especially multinationals, offer mostly non-cash benefits. This is to keep compensation-only grades standardised internationally."
Typical benefits can include housing, relocation costs, medical coverage - often for a whole family, not just a single employee. Private school fees may also become a factor, pushing the total value of a package far beyond the 62,000 mark.
Vox pop
Chris Karle
Home town: London, UK
Now works in: Moscow
Profession: Actor, entertainer
If rent is, say, 30,000 roubles a month, then you can spend another 15,000 on food, transport, a mobile etc. So 60,000 a month, and you're fine - no holidays or restaurant nights out, but you won't starve and you'll live in a decent flat. But don't buy clothes on that budget here - it's much cheaper getting them back home. Paying 30,000 in rent isn't cheap either - you can get bigger and a lot cheaper if you don't mind living at the end of the metro line.
Veronica Joupanova
Home town: Moscow
Now works in: London, UK
Profession: IT
For a decent life in Moscow I'd like to earn 90,000 roubles, but 70,000 would probably be OK. But in London everything is much more expensive than in Moscow. People say Moscow's the most expensive city for expats, but that's just not true.
Jennifer Walker
Home town: Chicago, USA
Now works in: Moscow, Washington DC
Profession: NGO project manager
US$60,000 a year (145,000 roubles a month) would surely be a minimum for Moscow - and even that might not be a "decent life" by western standards. At 62,000 roubles a month there's no money to travel home, or travel around Russia. I'd have to live on a pretty tight budget, which I would find restrictive - like trying to dance in a straight-jacket.
Kirill Veydash
Home town: Moscow
Now works in: Moscow
Profession: Owner of web development firm corifey.com
Fifty thousand roubles a month could be OK for a single person if there's no need to rent a flat, but it all depends on what someone demands from life. Also, I think the survey only talks about "white" income - for a lot of people that might be just 30 to 50 per cent of the actual salary.
