Russia: Government Plans to Raise Retirement Age

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By Sergei Blagov

The Russian authorities adopted a major pension reform that will increase men's retirement age by five years and women's by eight years. Businesses will be required to partially underwrite the costs of the pension reform.

On June 14, the Russian federal government approved a series of draft bills that will gradually increase the retirement age starting next year. The minimum retirement age for men will reach 65 years by 2028 from the current 60, and the minimum for women 63 by 2034 from the current 55, Prime Minister Dmitry Medvedev was quoted as saying in an announcement from the government press service.

Russia's current retirement age is one of the lowest compared to other former Soviet states and European countries, Medvedev told a top-level cabinet meeting.

Employees working in hazardous conditions will remain eligible for early retirement, he said.

The pension reform also envisions ratification of ILO Convention 102 concerning Minimum Standards of Social Security, Medvedev said, which would bring Russian pension legislation into line with the international standard.

One of the draft bills would increase the value-added tax to 20 percent from the current 18 percent to finance the pension reform, Medvedev said. The social insurance tax rate of 30 percent of salary would not change.

The new laws are expected to take effect Jan. 1, 2019.

To contact the reporter on this story: Sergei Blagov in Moscow at correspondents@bna.com

To contact the editor responsible for this story: Rick Vollmar at rvollmar@bna.com

For More Information

Full text of the press service announcement is available in Russian here.

For more information on Russian HR law and regulation, see the Russia primer.

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