### Finance, Personal Finance

# What is the median salary: calculation, statistical data. Median Income

We often wonder why in statistical data such huge figures are shown. Some of the population believes in the uneven distribution of incomes, which means that somewhere in the upper echelons officials illegally discharge their powers, others believe that against the background of the total number of able-bodied people, a small group with above-average prosperity leads, which determines such statistics. In general, so it is.

## Distinctive features of the average salary

Before starting to talk about the median salary, it is necessary to understand what is the average salary and what is in common between these two types of charges. So, let's begin.

According to the Federal State Statistics Service, the average salary in Russia is about 40,000 rubles, 50,000 rubles for St. Petersburg, about 65-70,000 for Moscow. But such data seems to most users of the network to be a bit exaggerated, and that's why. On indicators of the average salary it is impossible to trace behind real dynamics of a standard of living of group of people. Consider a classic example from the economy. In a typical Russian village with an average income of one resident of 4,700 rubles and a population of 100 people, a tycoon arrived with an income of 5,000,000 rubles a month. Since that time, the average monthly income of residents has amounted to more than 50,000 rubles. Do you think the living standards of the local population have changed? Naturally, no, except that the tycoon opened his own company in the village and raised salaries to its residents.

In order to calculate the standard of living of the average large group of people, the extras use two tricks: they discard 10% of the poorest and richest citizens and average their salaries or find out the median income. The second method is more common and is used much more often.

## The median salary and its criteria

That in such a case there were no questions, came up with a special calculation criterion, called the median. This indicator is used in statistical reports, replacing the average. The median salary is the diagram that most correctly reflects the real state.

## Median wages in the Russian Federation

According to some statistics, if the median salary is 23-29% below the average, then payments for 55% of Russians in a particular region of residence will be below the average by about 25%.

Proceeding from the foregoing, the median salary in Moscow, according to statistics in 2016, was 51,000 rubles a year, in St. Petersburg - 34,500 rubles, in other regions of Russia - within 27,000 rubles.

But do not you find such indicators slightly understated and inconsistent figures? Certainly.

## Analysis of the indicators of the median salary

According to the portal "Rabote.Yandeks", the average salary in the Russian capital is 62 500 rubles. Although the statistics two years earlier were at the level of two times lower. So is the information reliable, if in 2015 the picture had a slightly different dynamics?

Could the salary figures for the MoD jump so sharply? Opinions tend to negative answer. Another thing - the percentage of shadow earnings, evaded attention of Rosstat.

Experts, summing up, say that confidence is caused by the indicators published by Rosstat. Based on this, the average salary of Muscovites is about 39,000 rubles and there are deviations of 20% (more / less) from this amount. Although the median is lower.

Concerning the rest of Russia. With the indicators published above, you can argue, because the figure of 27,000 rubles is indicated taking into account the data for Moscow and St. Petersburg, which economically account for about 33% of Russia's GDP and only 16% of the country's population. Having rejected the factor of the capital, we will conduct a study and try to calculate the salary in the regions, using for this purpose a simple system of equations:

Х / у = 27 000 rubles; X is all money of the Russian Federation, y is the entire proletariat in the Russian Federation.

Calculation: x (1-1 / 3) / y (1-1 / 6) =?; In this equation, 2/3x is the total amount of wages in the RF, excluding MO and SPb, 5 / 6y is the general value of the proletariat in the Russian Federation without MO and SPb.

Proceeding from this: 27 000 х 0,8 = 22 400 - an indicator of the average median income, not taking into account Moscow and St. Petersburg.

If your region of residence is Orenburg, Kursk, Krasnoyarsk, Tver or other region of Russia, then, most likely, your salary does not exceed 22,000, and this is with a probability of 50%.

## Calculation examples

Let's look at an example of calculating the median salary for 10 able-bodied people. For example, the dynamics of earnings of 9 people looks like this: 100, 101, 102, 103, 104, 105, 106, 107, 108, another earns 10,000 rubles. So, the average salary indicator will exceed 1000 rubles. But the median will be only 104 rubles. The median salary in Russia - what is it? Based on the example, we can say that the median is the salary of a person, the average in the list / list. Simply put, half of the people receive less than his salary, the other half - more.

This practice is more common in the EU member states. In our region, the median salary is calculated somewhat differently. That is why many people have a question: "What is the median salary?"

## One more example

The median salary differs from the average, and its rates are almost always lower. Let's try to disassemble it for an example.

The organization employs 3 people: a courier, an accountant, a manager. The daily earnings of the accountant - 330 rubles, the courier - three times lower, the head - three times higher.

We calculate the average value of wages by the formula: (110 + 330 + 990) / 3 = 476.6 rubles.

We will try to calculate the median. Under this concept, the salary of an employee located in the middle of the salary list is implied. That is, in our case, the salary of an accountant is 330 rubles, located on the example in the middle of the list. As you can see, the amount of the median salary turned out to be an order of magnitude lower than the average.

## Differences in the system of calculating the median and average salaries

In fact, everything is simple. The whole secret in the career position of the employee, because a manager can receive a salary several times more than an accountant, but the courier can not bypass his manager in daily / monthly earnings. Cases of negative wages are recorded very rarely.

Now about the most important: which of the indicators more accurately reflects the real amount of wages - the average or median?

Focusing on the median income, you will find out how much the average Russian earns, while the average salary shows how much money this person is willing to spend per month. So, considering the indicators of the living standards of citizens, the median salary can be considered a more informative indicator.

## Special conditions

However, there is one "but"! Given that nowadays statistics on salaries in Russia become obsolete too quickly, it becomes clear that in practice, median statistics can only be used in low-grade agitation, that is, where nobody will go into details. More than 70% of the statistics that are freely available: regional salaries, sectoral incomes, salaries in other states and at different time intervals - rely on the average income indicators.

There is one feature of the median salary: 27-30% below the average. Therefore, if necessary, to calculate the median salary can be, simply by calculating it from the latest indicators of the average income. This is only an approximate figure, but such data can be useful.

As you can see, there is a difference between the median and the average salary, and it is this that causes the differences that arise during the formation of statistical reporting on certain resources.

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