Belarus Introduces Important Pension Innovations

Expectations for the next six months.

Several important pension innovations will be implemented for Belarusians this October.

The site zerkalo.io discloses details of the changes that officials are going to introduce for those who are on a well-deserved rest.

The Pension Reform to start in October

On October 1, another pension reform will begin in Belarus, it concerns the additional funded pension. From October 1, employees will be able to voluntarily pay insurance premiums of up to 10% of their paychecks. In this case, employers will be required to transfer up to 3% to this account. However, there is a detail: the employer must transfer the same percentage as the employee, but not more than 3%. For example, if a company specialist decides to contribute 2% of a paycheck to an additional pension, then the employer must add the same amount. And if the employee chooses a tariff of 5%, then the employer will 'add' the maximum 3%.

In this case, the employer will transfer money for the additional pension of the employee from the сmpulsory insurance contributions. Recall that now for most employers deduct 34% of the employee's salary - 6% of the salary fund goes to various benefits, 28% - to pension insurance.

The Ministry of Labour was pessimistic about the reform of the funded pension system, which will be introduced on October 1, 2022. At the same time, the main question was just about who will compensate for the 'lost' mandatory insurance premiums. Employers are expected to contribute to the funded pension.

Raise the minimum insurance period

From January 1, 2023, officials will increase the minimum insurance period. It is necessary to receive a labour pension. This length of service includes only the time when you worked and the employer paid insurance premiums for you to the Social Security Fund. This year, the minimum insurance period is 18.5 years. It will grow by six months, to 19 years, from January 1, 2023.

The minimum insurance period is going to be raised to 20 years. This should happen in 2025 according to the official plans of the official. Let us recall, in 2013 the year this index increased s 5 of up to 10 years. Belarusians who have not worked out the length of service according to the new rules fall into a pension trap, they cannot claim a labour pension, they can only be assigned a social pension: men from 65 years old, women from 60 years old. Now the social pension is 155.58 rubles.

Changes in the methods for pension calculation

New methods for pension calculations will be introduced in Belarus on January 1, 2023. The period for which they take a salary to calculate these payments will be raised by one year, up to 29 years of continuous work experience.

They are taking a salary for the last 28 years (336 months) of work in a row (or less if they worked less than 28 years) to calculate pensions. It will be raised by one year to 29 years (348 months) from January 1, 2023. Every year, this period is increased by 1 year to the actual work experience, the Ministry of Labour reported earlier.