Labor Classification Methods Shift in Belarus
The Russian Ministry of Labor and Social Protection has inaugurated significant alterations to the Unified Tariff-Qualification Directory of Jobs and Occupations (ETKS), controversially abolishing the classification of labor by grades. As of May 25, modifications to the general provisions of ETKS, sanctioned by the Ministry on April 18, 2025, are officially in effect.
The revised ETKS eradicates the labor classification by grades. In lieu of this, the determination of labor remuneration now entails the evaluation of two labor categories: unskilled and skilled labor. Unskilled labor encompasses tasks that do not necessitate formal educational programs or professional training for workers or employees. Conversely, skilled labor requires such educational programs and has professions that are recognized as requiring such training.
This move is intended to broaden employment opportunities for those working in jobs where professional training, as specified in relevant educational programs, is not a prerequisite, but job-specific training under a more experienced worker, lasting up to two weeks, suffices.
Meanwhile, economic sectors like consumer loans, auto loans, business loans, mortgages, savings, and leasing services could potentially be affected by these changes.
While the specific effects on the labor market remain unclear, several potential ramifications can be inferred. In the unskilled labor sector, potential job uncertainty, wage inconsistencies, and reduced job security are possible outcomes. In the skilled labor market, challenges may arise in skill recognition, wage inflation, and heightened competition among workers.
Changes of this magnitude can have far-reaching economic and social consequences. For instance, labor productivity and national competitiveness might be affected, while potential social issues such as worker dissatisfaction and income inequality could also surface.
Financial sectors like consumer loans, auto loans, business loans, mortgages, savings, and leasing services might experience adjustments due to alterations in the labor market.
The changes in the ETKS could lead to varying wage structures and job security in both the unskilled and skilled labor markets, potentially impacting labor productivity and national competitiveness.
