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Russia - Pensions and benefits will accrue a single Social Fund

Russia (bbabo.net), - From 2023, pensions, child benefits, sick leave payments and many others will be charged by a single Social Fund. The Ministry of Labor proposed to merge the Pension Fund (PFR) and the Social Insurance Fund (FSS) into one organization, and to place information systems of departments with data on recipients of support measures on one digital platform.

This will reduce the cost of maintaining a disparate IT infrastructure, the ministry believes, and will also simplify the appointment of payments that will be provided without unnecessary paperwork and certificates. Citizens themselves will be able to be notified of their rights to new support measures.

"For example, after an injury at work today, a person needs to apply for a disability pension to the Pension Fund of the Russian Federation and for a social benefit in connection with disability - to the Social Insurance Fund. After the funds are combined, he will be able to issue all payments at once in one application," explained the Secretary of State - Deputy Minister labor and social protection Andrey Pudov.

In some cases, applications will not be required, assistance from the state will be provided by default after the onset of a life event in which it is due, he says. The Ministry of Labor notes that the unified Social Fund will continue to accrue all previously assigned payments without changes, no re-registration will be required.

In addition, its creation will simplify many tasks for employers. Together with the unification of funds, a single tariff for insurance premiums will appear, it will be transferred in one payment. This means that employers will no longer have to submit several reports to different non-budgetary funds. Now insurance premiums are paid by them to the Pension Fund and the Social Insurance Fund. Moreover, the circle of the insured is different everywhere. If contributions to the Pension Fund are received for all employees (for employees employed both under labor and civil law contracts), then contributions to the Social Insurance Fund for compulsory social insurance in case of temporary disability and in connection with motherhood are deducted only for citizens employed under labor contracts. Because of this, paid sick leave is not required for citizens with whom a civil law contract has been concluded. And this is more than 4 million people, according to the Ministry of Labor.

So, after the introduction of a single tariff for insurance premiums, their total amount for preferential categories will remain the same. For small and medium-sized businesses, this is 15% of the part of salaries that exceeds the minimum wage. For residents of special economic zones, charitable and socially oriented organizations, Skolkovo, IT organizations and multipliers, it will remain 7.6%, and for ship crew members it will remain zero.

It is proposed to increase the total amount of insurance contributions from wages over 86 thousand rubles, but not more than 16 thousand rubles per employee per year. Now the Pension Fund deducts contributions in the amount of 22% from salaries up to 1.565 million rubles a year and 10% from that part of them that is more than this amount. Deductions to the FSS amount to 2.9%, but only from earnings up to 1.032 million rubles a year.

The innovation will allow one and a half times to increase social benefits. So, by 2025, the maximum monthly allowance for child care will be 57.4 thousand rubles instead of the current 37.9 thousand rubles (the allowance is paid in the amount of 40% of the average salary within the maximum possible amount). The maximum payment for pregnancy and childbirth (for 140 calendar days) will amount to 660.9 thousand rubles (now - 435.9 thousand rubles).

Russia - Pensions and benefits will accrue a single Social Fund