Russians don't believe their incomes will actually grow, despite government reports.

Co-founder of the interior design company Mr.Doors, Maxim Valetsky:

"I think Russians have generally improved their living standards, and their consumption patterns have changed: people are spending a lot more on sports and health. That's why it seems like incomes aren't growing, but new expenses are actually emerging for Russians, which have now become standard. Whoever you talk to, they all check up every six months, and everyone has interesting hobbies. In 2024, our payroll grew significantly, which resulted in a loss in profitability, but there was no way around it; it was market demand. We won't see salary growth in 2025, but a natural leveling-off is occurring: we'll improve some things, but we won't improve others, because today our salary level is at the edge of our profitability; we can't raise it any further. We believe that, in addition to salary, the company atmosphere, non-material incentives, and working conditions, which we are constantly working on, are very important for employees. To put it simply, Russians simply haven't noticed that they've acquired new expenses." That's probably why there wasn't more money for a car.

— So now, to live well, you need to provide for yourself in more categories. Is that all because of this?

- Yes, here we need to compare on a larger scale.

***

Alexey Belsky, founder and CEO of the engineering and IT company Uralenergotel:

"We planned to raise salaries by 15-20% in the first half of the year: in February and even in June for some. We're definitely in the labor market [in terms of salaries], and our employees' incomes have actually increased, because engineering salaries are now catching up with IT specialists and programmers—that is, this is the market segment that is currently on the rise, despite the general stagnation. We have a mandatory salary review for the labor market once a year, and we strive to stay at the top, with additional increases as needed. This is a planned procedure for us, and what's more, we have a company culture where we tell people: look, this kind of work costs so much on the market, so let's work from there. We have a transparent procedure, meaning that some may not believe us and look at how we've done a market overview, and see how much this or that costs. Moreover, people can participate in anonymous data collection. If you want to earn more, you can take training; we have in-house training. We are now slowly growing a corporate university."

***

Kirill Gorin, founder and CEO of Ninja Goods:

"I'm noticing growth among frontline team members. The fact is, as the business itself grows, so do the incomes associated with the revenue generated by the companies. Managers, on the other hand, receive a percentage either from the increase in marginal income or from net profit. We haven't shown great results this year in terms of net profit growth, but revenue is growing rapidly, and the incomes of frontline employees are growing. However, as an employer, I notice that they aren't growing as fast as expenses. I personally notice how the grocery basket is becoming more expensive day by day. And this is such a daily expense that it grows and doesn't give the feeling that you can buy more with a higher salary, let alone electronics or trips abroad. But there is intangible reward. This is participation in various events, which are filled with them now. Participants receive gifts, marks, even a book as a reward—even if it's not a very expensive gift, it's always a very nice touch. And the key thing is that if people see themselves in the organization and feel part of it, if they have stock options, this, of course, allows the team to maintain their salaries, anticipating higher pay in the future. But as an owner, I emphasize this and see the demand. The government would like us to pay higher salaries. I just don't yet understand how to ensure this."