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ECONOMIC RESEARCH

TITLE

Regional Wage Policy in the Public Sector: the Experience of the Donetsk People's Republic

Aleksey V. Polovyan, Karina I. Sinitsyna

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RAR (Research Article Report)

JEL J31, J38, H75, H77, R12

https://doi.org/10.52180/1999-9836_2026_22_1_7_105_116

AUTHORS

Aleksey V. Polovyan

Economic Research Institute, Donetsk, Russia

E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

ORCID: https://orcid.org/0000-0001-8570-6202

SPIN-code: 1032-1859

RSCI Author ID: 819830

ResearcherID: S-8479-2017

Scopus Author ID: 57200791954

Karina I. Sinitsyna

Economic Research Institute, Donetsk, Russia

E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

ORCID: https://orcid.org/0000-0002-4893-5089

SPIN-code: 2749-9386

RSCI Author ID: 951988

ResearcherID: R-3091-2017

FOR CITATION

Polovyan A.V., Sinitsyna K.I. Regional Wage Policy in the Public Sector: the Experience of the Donetsk People's Republic. Uroven' Zhizni Naseleniya Regionov Rossii=Living Standards of the Population in the Regions of Russia. 2026;22(1):105–116. https://doi.org/10.52180/1999-9836_2026_22_1_7_105_116 (In Russ.)

ABSTRACT

This study examines the remuneration system for employees of state and municipal institutions in the Donetsk People’s Republic within the context of its integration into the socio-economic space of the Russian Federation. The purpose of the work is a comprehensive analysis of the current legal and regulatory acts governing the remuneration system for employees of state and municipal institutions in the Donetsk People's Republic, identifying their weaknesses and contradictions, as well as formulating practical proposals to improve the remuneration system, taking into account the principles of social justice, efficiency and sustainability. The methodological framework combines legal and comparative legal analysis, statistical and institutional approaches, supplemented by qualitative content analysis and expert evaluation. The empirical basis includes Government Resolution of the Donetsk People’s Republic dated 03/16/2023 No. 17-2, federal and regional regulatory acts, Rosstat data, reports from the Ministry of Labour and Social Policy of the Donetsk People’s Republic, and analytical materials from academic and expert sources published between 2020 and 2025. The study finds that, despite the high level of detail in the current wage structure, the system perpetuates inter-sectoral and inter-regional disparities, fails to ensure a decent wage level (e.g., in the scientific sector, wages are 2–4 times lower than in neighboring regions of the Russian Federation), and ties incentive payments to volatile budgetary conditions. The hypothesis is confirmed that the lack of guaranteed, systematic indexation and transparent performance evaluation criteria exacerbates workforce instability and undermines the quality of public services. The findings underscore the need to transition toward a flexible yet predictable wage model grounded in mandatory income indexation, differentiation based on qualifications and working conditions, and harmonization between federal and regional regulatory frameworks.

KEYWORDS

remuneration, public sector, regional integration, incentive payments, tariff wage system, social equity, human resources policy, income indexation, legal and regulatory framework

INFORMATION ABOUT THE AUTHORS

Aleksey V. Polovyan

Doctor of Economics, Associate Professor, Director, Economic Research Institute.

Karina I. Sinitsyna

PhD in Economics, Head of the Department of Interdisciplinary Scientific Research, Innovation and Training of Scientific and Pedagogical Staff, Economic Research Institute.

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