Minimum pensionable service to be increased to 15 years

The government has prepared a relative draft document.

It provides for measures to engage non-workers in economic activity and to create additional incentives for proper work, deputy prime minister Anatoli Tozik said on October 20 at a meeting with the president to discuss employment and migration issues.

It is proposed to raise the minimum pensionable service and the period of paying mandatory contributions to the social security fund from 10 to 15 years. The last 20 years of service will be considered when calculating a pension. If one doesn't have the required total pensionable service, the pension age is increased by 5 years to 60 years for women and 65 years for men. A proposal of introducing the equal pension age of 65 both for men and women is being considered.

According to Anatoli Tozik, the amount of minimum state benefits for those who don't pay income taxes and contributions to the social security fund should be calculated.

The governments suggests raising the influence of the length of employment on pensions, first of all for low-paid employees.

The deputy PM thinks economic incentives should be created, social policy should be improved, social and work standards should be revised to make people work better. According to Anatoli Tozik, the implementation of these measures could raise nominal wages in the country to the level of the neighbouring states.

The country has started working to increase the mobility of workforce. The government plans to further reduce the amount of state-aided housing construction and increasing the construction of affordable rented homes, providing support for families with many children and other groups of people in need for better housing.