Belarus Introduces Another Pension Innovation

It will hit people significantly.

There is a pension innovation in Belarus in 2026. The authorities have changed the taxation of the amounts, which employers make to employees when they go on a well-deserved "vacation. The project "Chrysanthemum" drew attention to this innovation.

The issue is about severance payments, which employers pay when an employee reaches retirement age. These payments are not mandatory - they may be provided for in a collective bargaining agreement, agreement or other local acts of the organization as an element of social support.

Often at retirement employees can make one-time payments. Part of such incentives, including lump sums of money and the value of gifts, is recognized as income of the employee and is subject to taxation.

The state previously established benefits for such payments, considering them as income of a social nature, not related to the performance of labor duties. However, after the changes, only a part of the amount remained exempt from tax - within three average monthly earnings. Anything over this amount will have to be subject to income tax.

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