From April 1, pensions, child benefits and utility bills will change in Russia

Indexation of social pensions

From April 1, the amount of social pensions in Russia will increase by 3.3%. After the increase, their average value will be 10,193 rubles. As recalled by the Ministry of Labor, for 2022, the indexation of social pensions takes place in two stages – from June 1, 2022 by 10% and from April 1, 2023 by another 3.3%. In general, social pensions will increase by 13.6% over the year. Social pensions are received by citizens who do not have sufficient proven experience to accrue an insurance pension. In general, the increase will affect over 4 million people.

Svetlana Petrikova, partner at PG Partners law firm, comments: “Social pensions will be raised by 3.3%. Previously, they were annually indexed for inflation. But the 10% increase already happened in June last year, so a more modest increase is envisaged from April 1st. However, in aggregate, this is still more than the inflation rate at the end of 2022, which amounted to 11.9%.

Social pensions are received by those who do not have enough experience to pay the insurance pension, and the disabled. Also, the insurance pension is accrued as a result of the loss of a breadwinner. Payouts will be indexed automatically. You do not need to write an application or provide any documents for this. If a social pension is the only income of a person and it turns out to be below the subsistence level that is in force in the region, then the recipient will be paid the missing difference.”

Changing the rules for paying child benefits

Innovations will affect payments for children from three to seven years. Social support will be increased for those families whose average monthly income per family member is below the subsistence level in the region. Payments can grow by 1.5–2 times. Parents can apply for the recalculation of child benefits from April 1. If eligible, families will receive the first three months of 2023 retroactively. Moreover, if after the increase in the allowance it turns out that the parents of the child own some expensive property (real estate, cars) or expensive household appliances, then as a measure of responsibility, a complete deprivation of the child allowance is possible.

Andrey Loboda, economist, director of communications at BitRiver, comments: “At the beginning of 2023, there are 7 types of child benefits, some of them are quite cheap. In some regions, it was decided to combine all types of child allowances. And this is right, because most citizens have no time to understand the legal intricacies when replenishing a family. Starting from April, the state will give a ruble to those whose family income per person is very modest and does not exceed the subsistence level in the region. One house, apartment and car is not yet wealth, so almost all families with children of the appropriate age can count on government assistance. Ideally, such a measure of support should be extended to all families of Russians, and not just to low-income ones.”

Recalculation of payment for common house needs

From April 1, apartment owners will receive new payment receipts for utilities. The changes will affect the payment for common house needs (ODN): expenses for cleaning, the operation of the elevator and electricity in the house. This indicator will be calculated based on actual consumption. If there are meters in apartment buildings, then the owners will have to pay according to their testimony. Industry experts suggest that the amount of ODN in this case may be reduced. If there are no meters, then the amount of payment will be formed according to the standards. It is expected that in some cases tenants will have to pay extra. Previously, payment for the needs of the house was made according to approved standards.

Kirill Stus, specialist of the Intercession law firm, comments: “Earlier, regional authorities set standards for payment for the use of communal resources for ODN according to formulas based on the capacity of the connected equipment, specific resource consumption and a number of other parameters. In the case of overspending on utilities, the difference was paid for by management companies (MC), which often led to their bankruptcy.

Now the difference between the readings of common house meters and the total consumption of all apartments in the house will be distributed among all residents in proportion to the area occupied, which will lead to an increase in the amounts in utility bills. The standard is now set on the basis of the analog method: the calculation is based on the readings of metering devices in houses with similar design features in similar climatic zones. I think that the amounts in receipts will increase for all tenants – both for those who pay upon consumption (since actual consumption was often higher than the standards), and for those who pay according to the standards (since the standards are calculated using the new analog method) ” .

Introduction of the digital ruble

From April, Russia will begin testing the “third form of money” (after cash and non-cash) – the digital ruble. The virtual currency will be tested by 13 largest Russian banks that take part in the Bank of Russia project. The digital ruble will be equivalent to the usual one. At the same time, Russians will have the opportunity to store digital savings regardless of the banking system. An offline wallet will be provided for this. At the initial stage, Russians will be able to make transfers between individuals using the digital ruble, as well as pay for their purchases and services.

Natalya Milchakova, Leading Analyst at Freedom Finance Global, comments: “The digital ruble issued by the Bank of Russia will comply with all the features of the national currency, the usual monetary unit, with the exception that it will exist exclusively in non-cash electronic digital form. Simply put, the Central Bank will open a digital wallet-token to everyone who wishes, where digital rubles will be stored. However, while the innovation is only a pilot project, no forced transfer of the population from ordinary cash and non-cash rubles to digital ones is expected. It is likely that only a very small group of volunteers participating in the testing project will be able to use the digital ruble at the initial stage. And it will not be possible to pay for goods and services with digital rubles everywhere, but only at the companies participating in the project. The digital ruble will become publicly available only in a few years, after successful testing. Recall that state digital currencies operate in a very small number of countries: in China, the digital yuan circulates only on a par with the traditional (fiat) yuan – and not yet in all regions of this vast country.

Update rules for passing exams for rights

From April 1, changes await those who plan to get a driver’s license. In the practical part of the test for drivers, the exercises on the site will be replaced by a series of additional tasks within the city. To do this, inspectors will select sections of roads with less heavy traffic. The examiner will also change. Next to the driver will now be a traffic police officer. The instructor from the driving school will stay in the car but take a seat in the back seat.

Andrey Loboda comments: “According to the traffic police, at least 1.1 million people get a driver’s license every year in the country. Last year, only 18% of candidates passed their driving license the first time. The presence of a traffic police representative in the front seat of applicants should not be embarrassing. The quality of training in driving schools is more important, and it is this that worries traffic inspectors. The number of attempts to retake exams is growing, it is quite possible that applicants do not have time to master the practice of driving. No matter how the rules for passing exams change, it is important to consistently improve the quality of training in driving schools, to strive for a significant reduction in accidents with the participation of novice drivers. Life is changing rapidly: high-speed toll roads appear, navigation becomes more complicated, the class of cars stuffed with modern electronics rises year after year. You need to delve into everything quickly, and people have less and less time. That is why a full-fledged study of the rules of the road, quite consciously and promptly, should be introduced into the program of the senior classes of a secondary school or in the first years of universities.

Changes in the activities of microfinance organizations

Microfinance organizations (MFIs), when applying for online microloans, from April 24 will be required to verify the identity of the borrower according to the updated parameters. In particular, it is recommended to verify the validity of the passport of the potential borrower, the authenticity of his photograph in the document, information about the credit history, and also that it is he, and not the scammers, who uses the account and phone number indicated in the application. In total, 10 verification methods are offered. MFIs will be required to use at least three of them. According to market regulators, this will prevent fraud in obtaining such loans using other people’s personal data.

Petr Gusyatnikov, Senior Managing Partner at PG Partners, comments: “It is not clear why these changes have occurred only now. They should have been introduced a long time ago. In my opinion, this will help to reduce the level of fraud when applying for microloans. In fact, this problem is much more global than they say about it. A very large number of people are faced with the fact that fraudsters issue loans to them. Yes, these are small amounts, but nevertheless, no one wants to pay on other people’s debts. At the legal level, there is a way to remove other people’s debt obligations in court. But this requires a lot of time, certain legal knowledge and a lot of nerves. For example, a person suddenly finds out that “thanks” to scammers, he owes 10 thousand rubles to the MFI. Most likely, he will not go to court because of such a sum. This is actively used by scammers, using other people’s personal data to obtain loans. MFIs, in turn, are not particularly bothered by verifying the authenticity of documents. I hope that now the situation will change for the better.”

And:

Changes in the norms of duty-free import of goods from abroad. From April 1, the parameters for duty-free importation of goods into Russia from abroad or orders from foreign marketplaces will change. Personal importation of goods on foot or by various modes of transport (except air) up to 500 euros and 25 kilograms will be allowed without paying a fee. Previously, the threshold figures were 1,000 euros and 31 kilograms, respectively. In addition, duty-free delivery of a parcel by post or courier is allowed up to 200 euros and 31 kilograms.

Subsidies for housing and utility bills. Starting from April 1, those in need will again be provided with subsidies for housing and utility bills for six months. Their operation was suspended in 2020 during the coronavirus pandemic.

Gadgets with Russian applications. From April, a decree comes into force in Russia, according to which all electronic devices will appear on the market with Russian software already installed. Along with smartphones, tablets, laptops and personal computers will receive the corresponding firmware.