AVERAGE ANNUAL MONEY EARNINGS OF WORKERS AND EMPLOYEES IN THE USSR 1928-65

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• Collection: General CIA Records
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• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: November 9, 2016
• Document Release Date: February 16, 1999
• Sequence Number: 1
• Publication Date: June 1, 1960
• Content Type: REPORT

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N? 102
.ECONOMIC RESEARCH AID
.AVERAGE ANNUAL MONEY EARNINGS
_. _ _ _.
OF WORKERS AND EMPLOYEES IN THE USSR
CIA/RR A.ERA 60-5
=June 1960.
CENTRAL INTELLIGENCE AGENCY
OFFICE OF RESEARCH AND REPORTS
C(1D /"~eet/~~ w ~
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FOREWORD
This research aid is a revision of CIA~RR RA-30, Money Earnings in
the USSR, 1828-60, 23 April 1958, FOR OFFICIAL USE ONLY. Although the
revised estimates do not differ greatly from those presented in RA-30,
the new estimates are believed to be more reliable. They are based on
additional information made available during the past 2 years. The
estimates for most of the years were derived from Soviet sources. For
only a few years- was it necessary to obtain estimates by interpolation..
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CONTENTS
I.
Introduction 1
1
IT.
Growth of Average Money Earnings
3
III.
Soviet Method of Calculating Average Money Earnings
Appendixes
Appendix A .
Appendix B.
Methodology
Composition of the Wage Fund in the USSR
7
Appendix C.
Source References
9
Amount, Increase, and Index of Average Annual Money Earnings
of Workers and Employees in the USSR, 1928-59 and 1965
Plan . 2
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AVERAGE ANNUAL MONEY .EARNINGS OF WORKERS AND EMPLOYEES IN THE USSR-
192-5
I. Introduction
The purpose of this research aid is to present estimates of average
annual money earnings of workers and employees in the USSR during
1928-65,(see the table~-~~). Most reliable are the estimates for 1928-40,
-1945, 1947, and 1950-59, which have been reported in official Soviet
publications as absolute amounts or as percentage increases above pre-
viously announced figures. Less confidence can be placed in the esti-
mates far 1841-~~+, 1946,-and 1948-49, which were calculated by interpo-
lating between years for which data are available.
II. Growth of Average Money Earnings
Four periods may be distinguished in the growth of average money
earnings in the USSR during 1928-58. During 1928-38, average money.
earnings increased rapidly, with annual increases ranging from 10 to
27 percent.- During World War II and the immediate prewar period --
that is, from 1938 to 1945 -- money earnings rase at the more moderate
rate of about 6 to 8 percent per year. The growth of average money
earnings in the third period, 1946-47, reflects the results of a wage
readjustment that took place in September 1946. The wage readjustment
increased average money earnings in 1946 by 11 percent in comparison
with 1945 and average money earnings in 1947 by 20 percent in compari-
son with 1846. During the fourth period, 1948-58, average money earn-
ings increased only about 2 to 3 percent per year.
Average money earnings of workers and employees are expected to
continue to rise at a moderate rate during 1959-~5? The Seven Year
Plan (1959-65) schedules an increase in average money earnings of 26 per-
cent, or 3.4 percent per year. According to preliminary Soviet reports,
however,- average money earnings in 1959 rose only slightly more than
1 percent compared with 1958. The small size of the increase in thi s
year probably resulted from a lag in the implementation of the wage and
The estimates and conclusions contained in this research aid repre-
sent the best judgment of this Office as of 1 May 1960.
~- The term workers and employees as defined by the USSR and as used
in this research aid includes all persons employed in state enterprises,
organizations, and institutions. Excluded are collective farmers, mem-
bers of industrial cooperatives, and military personnel.
~~~- The table follows on p. 2.
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Table
Amount, Increase, and Tndex
of Average Annual Money Earnings of Workers and Employees
in the USSR
1928-59 and 1965 Plan
Percentage Increase
Index J
Amount ~
Above
Year
(Current Rubles}
the Preceding Year
(1928 = 100)
1940 = 100) ~
1g50 = 100
1928
703
loo
1929
800
14
114
1930
936
17
.133
1931
1,127
20
160
1932
1,427
27
203
1933
1,566
10
223
1934
1,858
19
264
1935
2,269
22
323
1936
2,650
17
377
1937
3,093
17
440
1938
3,467
12
493
1939
3,750
8
533
1940
4,054
8
577
loo
1841
4,350
7
61g
107
1942
4,640
7
660
114
1943
4,940
6
703
122
1944
5,2.30
6
744
129
1945
5,230
0
744
129
1946
5,810
11
826
143
1847
6,970
20
991
172
1948
7,210
3
1,030
178
1949
7,450
3
1,060
184
1950
7,700
3
1,100
190
loo
1951
7,840
2
1,120
193
,102
1952
7,890
2
1,140
197
104
1953
8,150
2
1,160
201
106
1954
8,350
2
1,190
206
108
1955
8,590
3
1,220
212
112
1956
8,880
3
1,260
219
115
1957
9,160
3
1,300
226
119
1958
9,430
3
1,340
233
122
1959
9,550
1
1,360
236
1.24
1865
Plan
11,900 c~
~
1,690
294
155
-
a. For a discussion of sources and methodology, see Appendix A.
b. All data for 1841-65 have been rounded to three significant digits. Current ruble
values throughout this table may be converted to U5 dollars at the rate of exchange of 4
rubles to US $l. This rate of exchange, however, does not necessarily reflect the dollar
value.
c. This figure does not take into account the change in the value of the Soviet ruble
scheduled to take place on 1 January 1961.
d. Planned increase of 26 percent compared with 1958.
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hour reform during 1959 and will have to be made up during 1960-65 if
the goal of the Seven Year Plan is to be met. The announced Soviet in-
tention to complete most of the wage and hour reform by the end of 1960
suggests that much of the lag in average money earnings may be overcome
during 1960.
III. Soviet Method of Calculating Average Money Earnings
Average annual money. earnings (srednyaya zarabotnaya platy) of
workers and employees in t1~e USSR are computed by dividing the annual.
wage fund (fond zarabotnoy platy) by the average annual number of
registered workers. The number of workers holding more than one job
is deducted from the total number of workers before the calculations
are made. Because the wage fund includes wages paid to casual workers
and because the number of workers-used as the divisor excludes such
persons, the level of average money earnings is slightly overstated.
The total wage fund fob all workers and employees is obtained by
summing the wage funds of all state enterprises and institutions. It
includes all amounts regularly deducted from the worker's pay, such as
income taxes, repayments of loans made by the state or by the enter-
prise, and compensation for damages to state property. In addition to
payments for time worked, such as wages, wage supplements, and premiums,
other items included in the wage fund are payments for time not worked
such as holiday and leave pay, payments for certain types of education
and training, and the money cost to the enterprise of payments in kind
such as housing and public utility services. A complete list of the
payments regularly included in the wage fund is found in Appendix B.
Specifically excluded from the wage fund, and therefore from average
earnings, are one-time bonuses the payment of which (1) is not provided
for in the regular bonus system of the enterprise but (2) is provided
for from special budget allocations. These exclusions include prizes
won in "socialist competitions," payments for inventions and technical
improvements, and bonuses paid from the director's fund. Also excluded
from the wage fund are. social insurance and pension payments, travel
pay and allowances, and allowances for special clothing, protective
devices, and other work supplies.
~ Registered workers are those workers who are employed by an enter-
prise or an organization and whose labor books are held by the person-
nel office of the employer.
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METHODOLOGY
The method for deriving the estimates of average. money earnings of
workers and employees in the USSR during 1928-65 is presented below.
1. 1828-40
.Average money earnings for the years 1928-40 wir* Eptim tesnfor
official Soviet sources except for 1936 and 1939? J
1936 and 1939 were made by geometric interpolation,
2. .1941-~+~+
Average money earnings for 1941-~+~+ were estimated by interpolating
arithmetically between 1940 and 1945 on the assumpt~Oandh1g45herArith-
no significant change in money earnings between 194
metic rather than geometric interpolation was employed on the assump-
tion 'that the rate o.f growth in average annual money earnings was
greatest during the early years of the war.
3? 1945-58
Average money earnings for 1945, 1947, 1950, and 1953-58 were esti-
mated from percentage increases in comparison with 1940 reported in two
articles by S. Figurnov. ~ A few obvious typographical errors in these
articles were corrected on the basis of information from other sources. 3~
An estimate of average money earnings in 1952 was made from twere 2 ere
went on plan fulfillment that average money earnings in 1953 p
cent above those in 1952.
Average money earnings in 1946 were estimated by interpolating be-
tween 1945 and 1947. In making the interpolation it was assumed that
the 33-percent increase in earnings experienced between 1845 and 1g~+7
was solely the result of the wage readjustment in September 1946. The
new higher rates, therefore, affected average earnings only in the last
quarter .
Estimates of average money earnings in 1948 and 1949 were made by
geometric interpolation between 1947 and 1850, and an estimate of aver-
age money earnings in 1951 was similarly obtained from 1950 and 1952
data.
For serially numbered source references, see Appendix C.
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~+. 1959-65
The estimate of average money earnings in 1959 is based on a pre-
liminary report received in September 1959 which stated that money
earnings in 1958 were 2~+ percent above the level in 1950.
Planned average money earnings in 1965 were estimated by increasing
the estimate for 1958 by 26 percent, the planned increase in money earn-
ings under the Seven Year Plan (1959-65}. ~ The absolute levels of
money earnings in 1958 and 1965 implied by this method are confirmed
by absolute figures on the level of average monthly earnings in 1958 and
1965 reported by the Soviet news agency TASS. ~ These figures have not
been reported elsewhere.
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COMPOSITION OF THE WAGE FUND IN THE USSR
Presented below is a detailed list of the types of payments in-
cluded in the wage fund for the USSR. It is of interest to note from
the list that the purpose for many of the types of payment is to com-
pensate the piece-rate worker who is temporarily assigned to other
tasks for loss of earnings resulting from time not spent at his regu-
lar job.
1. Monetary Payments for Time Worked
a. Wages
Regular wage payments based on salaries, hourly rates, and
standard piece rates.
Payments to casual workers.
b. Wage Supplements
Payments for longevity.
Payments for difficult or hazardous working conditions.
Payments for overtime, night, or holiday work.
Payments for service in the Far North, the Far East, and
other "remote" locations.
Regular bonuses for fulfillment of production, cost reduction,
-and other plans.
Premium payments to workers employed under progressive piece-
rate systems.
d. Other Payments
Additional pay for piece workers temporarily transferred to
jobs that pay wages below the average compensation of their
permanent positions.
Additional pay to piece workers to compensate for loss of
earnings because of unfavorable working conditions-such as
lack of adequate supplies of materials, unsuitable tools
and equipment, and technical complications outside the com-
petence of the worker.
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Additional pay to brigadiers for organizing the work of bri-
gades.
2. Monetary Payments for Time Not Worked
a. Ordinary Allowances
Holiday pay.
Leave pay, including sick leave.
Compensation for unused leave.
Time-off pay for nursing mothers.
Severance pay.
Travel pay for persons who are employed in the Far North and
in remote regions and who are being transported to places
where leave time may be used.
Payment for working time used in the performance of tempox?ary
state, social, or milit ary duties.
Payments to juveniles who are guaranteed full pay but are
restricted by law to a ~+-hour or 6-hour day and must be
paid for that portion of the day not worked.
b. Contingency Allowances
Payment .for time lost in work stoppages that are not the
fault of the worker.
Monetary Payments for Education and Training
Payments to registered workers receiving approved training at
educational institutions.
Additional pay to persons attending classes during working hours
to compensate for time lost.
Payments for instructing apprentices.
Payments for supervising trainees.
~+. Payments in Kind and Awards and Prizes
The cost of "free" communal services such as housing and public
utility services and the cost of payments in kind in those
instances in which such payments are stipulated by law.
Monetary compensation in lieu of housing and public utility
services where they are required by law as conditions of the
job..
Authors' awards and prizes and lecture fees.
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SOURCE REFERENCES
1. USSR, Central Administration of Economic and Social Statistics
of the State Planning Commission. Sotsialisticheskoye
stroitel'stvo SSSR (Socialist Construction of the USSR), 1936,
Moscow, p. 3 -3 9? U?
USSR, Gosplan. Sotsialisticheskoye stroitel'stvo Soyuza SSR
1933-38 (Socialist Construction of the USSR, 1933-3 1939
Moscow and Leningrad, p. 20, 139. U.
USSR, State Scientific Institute. Bol'shaya sovetskaya entsi-
klopediya (Great Soviet Encylopedia in one volume ,
American Council of Learned Societies Reprint, Russian Series,
no 18, Baltimore, 1949, p. 1117. U.
Lifits, M.M. Sovetskaya torgovlya (Soviet Trade), Moscow,
1848, p. 54. U.
2. Figurnov, S. "Osnovnyye formy povysheniya real'noy.zarabotnoy
platy v SSSR" (Basic Forms of the. Increase in Real Wages in
the USSR), Sot sialisticheskiy trud, no 5-1959, May 1959,
Moscow, p. 51. U.
Figurnov, S. "K voprosy o metodologii ischisleniya real'nikh
dokhodov i real'noy zarabotnoy platy trudyashchikhsya SSSR"
(Concernin.g Questions of Methodology in the Measurement of
Real Income and Real Wages of Workers of the USSR), Trud i
zarabotnaya Plata, no 12-59, Dec 59, Moscow, p. 48. U.
3. CIA.. FDD Translation no 484, 24 Feb 56, p. 294. U.
USSR, Academy. of Sciences. Politicheskaya ekonomika (Political
Economy), 1955, revised edition, Moscow, p. 3. U.
Lopatkin, V. "Razvitiye sovetskoy torgovli" (The Development
of Soviet Trade), Kommunist, no 12, Aug 57, Moscow, p. 118. U.
Pravda, 31 Jari 57, pT U?
Pravda, 7 Nov 58, p. 2. U.
USSR, Central Statistical Administration. Narodnoye khozyaystvo
SSSR v 1958 godu (National Economy of the USSR in 195 , 1959,
Moscow, p. 5 U.
4. Pravda, 31 Jan 56, p. 3. U.
FOIAb3 b1 5? ~FBIS, Daily Report (USSR and East Europe), no 288-195q,
23 Nov 59, p. BB 30. OFF USE.
6. Karpukhin, D. "0 planirovanii tempov costa proizvoditel'nosti
truda i zarabotnoy platy" (Concerning the Planning of the Rates
of Growth of Labor Productivity-and Wages), Sotsialisticheskiy
trod, no 2-1959 Feb 59~ p? 58? U?
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7. Free Europe Committee, Inc., Radio Free Europe, Munich, Office of
the Political Adviser. Background Information USSR, 3 Mar 59,
p. 1. U.
8. USSR, Central Statistical Administration. Slovar'-spravochnik
po sotsial'no-ekonomicheskoy statistike (Dictionary-Handbook
of Social-Economic Statistics , Moscow, 1944, p. 211-214. U.
Borisovskiy, S.P., edr. Metodika sostavleni a lava zhilishchnogo-
kommunal'nogo khozyaystva Methods of Establishing Plans for the
Housing-Communal Economy , Moscow, 1957, p? 388-391? U?
Grigor'yev, A.E. Ekonomika truda (The Economics of Labor),
Moscow, 1959, p. 320. U.
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