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Abstract: The results of introduction of "effective contracts" with teachers of higher education institutions of the country without any additional financing of higher education are analyzed. The argument is provided that such contracts were supposed to solve the problem of low salaries of the teaching staff and to stimulate the efficiency of their scientific and educational work, but, in fact, it won’t cope with it, as financing of the higher education institutions by the government is limited due to the social and economic situation in the country. Besides, the other sources of financing of higher education institutions are extremely limited. When such contracts were implemented in comprehensive schools, teachers began to get the minimum salary (the basic salary) and the stimulating payments, but the majority of the teachers do not get these payments to the full extent, as they are cut-down due to different reasons. In fact, similar contracts are to be implemented in higher education institutions. The possible options of introduction of the contracts are the following: 1) reduction of fixed salaries of teachers and all the other extra payments, provided that the teachers agree with this system and are ready to change work terms and payment in the employment contract (article 72 Labor Code of the Russian Federation); 2) non-budgetary sources from the activity of higher education institutions; 3) financing of the stimulating part at the salary by means of additional resources of the state budget. It is necessary to carry out an experiment that will analyze the implementation of such “effective contract” in higher education institutions of the country and its consequences to the social status of the teaching staff and the quality of teaching.