In the conditions of transition to market relations, when the economy of Russia is in an unstable condition, in our opinion, it is necessary to use all economic tools which promote increase of efficiency of production at the enterprises of the country. Among these tools one of the most important is the stimulation of labor in production. The article considers reproductive, stimulating and regulating functions of wages and shows the relationship between stimulating and reproductive functions. The necessity to increase wages of workers regardless of the form of ownership of the enterprises where they work is theoretically substantiated, the analysis of the current state of wages in the Russian Federation is given.