The State Duma adopted a law on the return of pension indexation to working pensioners
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Working retirees will once again receive an increase in their pension. They finally recovered their annual indexation. The law on this matter will come into force in 2025. On Wednesday, deputies of the State Duma approved this document in the second and third reading. What exactly will change? How much will your pension increase? And what will be the additional budget expenses?
Eight years without indexing
Until 2016, all pensioners were equal. Their pensions were indexed to inflation every year. But workers received a small raise in August. Because they continued to work and pay insurance premiums to the budget. But in 2016, due to the growing budget deficit, the government decided to draw a division between those who work and those who do not.
The first pensions were no longer indexed. But for the latter, pensions began to grow more rapidly. The authorities explained this by the fact that workers, even without indexation, have higher incomes. And those who physically cannot work can now receive more from the State.
As a result, the gap in pensions between workers and non-workers began to grow every year. For example, at the beginning of 2022, pensioners who did not work had pensions on average 3,500 rubles more than those who worked. In 2023, this gap increased to 5,000 rubles per month. And in 2024 – up to 5,500 rubles. Pensions for non-workers increased this year by 7.5% to 23,244 rubles, the Ministry of Finance reported.
It affects 8 million people
Starting next year, the annual indexation will be returned to working pensioners. That is, your income will increase each year at the rate of inflation.
– Starting February 1, 2025, pensions will increase annually not only for those who have already retired, but also for those who continue to work. This will be truly fair,” President Vladimir Putin said at a plenary session of the St. Petersburg International Economic Forum in June this year.
According to him, if 15 or 20 years ago the main question was how to find work, now it is where to find personnel.
“In this sense, it is important to support the aspirations of people who have reached retirement age to continue working,” explained the Head of State.
The changes will affect 7.87 million people. At the same time, there are resources for the annual indexation of pensions. The new tax changes should increase budget revenues. And some of them can be used to index the pensions of working retirees. Moreover, the amounts there are quite affordable for the federal treasury.
How and how much will they add?
The magnitude of the annual increase will depend on two factors. Accumulated experience and pension points. And also about the level of inflation during the last period.
“We have determined for ourselves that the average increase should be about 1,300 rubles,” Deputy Prime Minister Tatyana Golikova said during a plenary session of the State Duma.
At the same time, as the Ministry of Labour clarified, the amount of the increase with the same seniority will be the same for both working and non-working citizens.
– The amount of the pension increase for next year will be calculated based on the amount of the pension taking into account all past indexations, including the periods 2016 – 2024. And the inclusion of indexation in pensions for the period from 2016 to 2024 for working pensioners will occur after they finish their working career, said the head of the Ministry of Labor Anton Kotyakov.
How will pensions be indexed?
Let’s say a working pensioner now receives 17 thousand rubles a month. But if he was not working, he would receive 23 thousand rubles.
If inflation this year is 7%, pensions will increase by the same percentage next year.
The indexation calculation will be based on the greater amount.
That is, the pension of a working retiree will increase by 1,610 rubles per month (7% of 23 thousand rubles).
You will receive in your hands 18,610 rubles (17 thousand + 1,610 rubles)
According to the Ministry of Labor.
New indexing order
From 2025, insurance pensions will double. At the same time, working retirees will also have a third additional annual increase.
– Starting February 1, pensions will increase according to the inflation rate, and starting April 1, the insurance part of the pension will be indexed according to the level of income from the Social Fund. Working pensioners will face another increase from August 1: a new calculation of pensions taking into account the points earned, – Andrey Isaev, member of the Committee on Labor, Social Policy and Veterans Affairs.
Compared to the February indexation, the increases in April and August are much smaller. Until 2016, the growth in income of the Pension Fund (now Social Fund) was 1% to 2%. The August increase for employees depends on the salary level, but is limited to an amount of three pension points per year. That is, the maximum that working pensioners can receive is plus 500 rubles per month.
Experts consider the decision to be fair and timely. Especially considering the fairly high inflation that has been seen in recent years.
– The decision should have been made a long time ago. It’s good that it was accepted. This is the correct approach, which should be welcomed in every possible way. Now the country’s economy is solving large-scale problems. The work of older, highly qualified specialists with valuable experience cannot be underestimated. After all, they can act as mentors for young people,” Alexander Shcherbakov, professor at the Department of Labor and Social Policy at RANEPA, said on Radio Komsomolskaya Pravda (radiokp.ru).
