Social contract – sample 2023

What is a social contract, how to conclude it and what you can spend the money received on – in the material “Kommersant”.

What is a social contract

The social contract is a state program to support low-income families and citizens, which is carried out with the help of regional social assistance centers. Social security authorities enter into an agreement for the provision of certain amounts with a strictly defined purpose specified in the contract. The program is actively funded by the state, in 2023 the amount of support reached 35 billion rubles.

Families and citizens whose income does not exceed the subsistence level of the region in which they are registered can count on the social contract. The purpose of the program is to help in finding a job, starting a business, creating a subsidiary farm or getting out of a difficult life situation (the concept of a “difficult life situation” can be interpreted in different ways, but usually it includes disability, loss of a breadwinner, inability to provide for oneself due to old age and others. What difficult life situations can be solved with the help of a social contract in a certain region, it is better to check with the local social support center).

Self-employed and sole proprietors can also enter into a contract under similar conditions (income must be below the living wage).

How much money can you get and what to spend

The social contract provides support only for certain types of activities, while the social protection authorities will monitor the appropriateness of spending the allocated funds. In total, there are several types of social contracts with different conditions and amounts of payments:

1. Employment. The most popular type of social contract, in 2021 and 2022 it was concluded in 40% of cases. The state helps with finding a job, training, retraining and internships. A citizen receives payments in the amount of the subsistence minimum, as well as tuition fees (up to 30 thousand rubles), until he is employed. The maximum contract period is nine months.
2. Maintaining a private household. You can get up to 200 thousand rubles. on the organization and improvement of subsidiary farming (personal garden or kitchen garden). For example, purchase the necessary agricultural tools and seeds. You can also count on providing training (up to 30 thousand rubles)
3. Business creation. Opportunity to receive up to 350 thousand rubles. to start your own business. The state can help with training in entrepreneurial skills (also in the amount of up to 30 thousand rubles). The conditions for concluding a contract and additional required documents depend on the region in which the social contract is concluded. You will need a business plan that will show what the allocated money will be spent on.
4. Improvement of financial situation. If the family does not have enough money for basic necessities, such as food, clothing, utility bills, etc., it is possible to enter into a contract for lump sum or monthly payments of certain amounts, but not more than six months.
5. Promotion plan. Even if the product is produced, it still needs to be sold. Create a marketing strategy (at first it can be advertising on social networks, because it does not require large expenses), as well as promotional offers that will interest potential buyers.
6. Financial plan. One of the most important points. Considering past plans, draw up a general scheme of income and expenses, expected sales, finance costs from state support, etc. Based on this, it will be possible to determine how much support is needed, which means that it will be more readily issued.

It is important to remember that a business plan is created not only to convince the commission to conclude a contract, but also for the entrepreneur himself, who will develop his business on its basis. For example, it is worth making a financial plan at least every month, as well as periodically updating the production and advertising. It is also useful to do some market analysis from time to time so that you are always aware of new moves by competitors, customer requests, etc.

How to write a business plan

In order to receive 350 thousand rubles. to open your own business, you will need to show what and how the funds will be spent. For this reason, when concluding a social contract with an entrepreneur, the state will require a business plan with a description of the goods, risks and expected income and expenses. The social contracts program promises help at every stage and entrepreneurial training, but it is useful to understand in general terms what a business plan is and how to write it correctly:

Description of the product or service. The entrepreneur must have a complete understanding of what he is going to sell to consumers. Here you will need all the details that distinguish the product from future competitors (for example, a special manner of presentation, quality of materials or manual work). You can also imagine how the product can be developed after receiving the first income, or what new things can be produced.

Market analysis. Unfortunately, all areas of business have been busy for a long time, and one way or another you will have to face competitors who have been in this market for much longer. You need to consider in the same detail as your own product, the offers of competitors – both large companies with a multi-million dollar budget, and individual entrepreneurs like you. Pay attention to the number of customers, reviews and sales of those products with which you intend to compete After analyzing, based on the features of your product and the product of competitors, you can try to roughly calculate what market share your project can take.

Analysis of potential buyers. In order to sell a product, you need to know who will buy it. Based on reviews and sales from other companies, determine what customers lack, what they consider important in a product or service, and what they cannot get from your competitors.

Production plan. Here you need to calculate the cost of production. This point can be especially important when entering into a contract because it involves the monetary costs required to produce the product. Everything needs to be taken into account:

• the cost of raw materials, packaging for goods;
• salaries to employees (if only you will work in production, the item can be skipped, since the social contract takes into account the income of the entrepreneur from his activities);
• rent of space or equipment;
• advertising costs;
• any other costs.

Why they can refuse to conclude a contract or terminate it

The center of social assistance may refuse to conclude a contract. This can be done if the family or citizen is not poor (that is, they have an income above the subsistence level) or if they own any expensive property (for example, a car, a second apartment, assets in banks). In this case, social support is not provided. And of course, support will not be approved if the applicant hid information about the composition of the family, its income and property.

Also, the social contract can be broken after its conclusion. The Special Commission has the right to terminate support if:

• a citizen or family moved to another region or emigrated;
• the business activity for which the money was allocated ceased;
• the allocated money is spent inappropriately (for example, for the purchase of real estate or non-essential things);
• property that was purchased with public money sold.

Nevertheless, the decision to refuse a social contract or its early termination can be appealed in court or in social security authorities.

Where to conclude a social contract and what documents are required

To conclude a social contract, you will need to submit an application through the website or application “Gosuslugi”, as well as at the nearest MFC or at the center of social protection.

The application must include the following information:

• about the composition of the family;
• about the income of family members;
• about the property of each family member.

Then they need to be confirmed. In different regions of the country, when concluding different types of social contracts, different documents may be required, this can be clarified with local social services. The following documents will be required:

• passports of all family members (also, just in case, it is worth preparing birth certificates, TIN and SNILS numbers);
• Marriage certificate;
• birth certificate of children;
• certificate of ownership;
• certificate from the place of employment (may be required to clarify the amount of income);
• other documents related to the type of social contract (for example, a business plan for an entrepreneurial one).

Ilya Akimov