Benefits for Working Retirees in Russia: What Changes Mean for Pensioners
Experts explain that after reaching retirement age, citizens must apply for a pension to be officially recognized as working retirees and to access the legal benefits that accompany this status. Without applying, a retired person does not gain eligibility for the work-related privileges that come with being a working retiree.
One key point often highlighted by Fatima Nogailiyeva, an advisor in the Department of Labor and Social Law at St. Petersburg University, is that working retirees can count on additional leave opportunities. In addition to their annual paid vacation, they are entitled to up to 14 calendar days of unpaid leave each year for non-working days, and up to 60 calendar days for those who are classified as working disabled. This framework helps balance ongoing employment with the needs often associated with aging and health considerations.
Regarding the termination of employment, the law provides specific protections. If a retired employee wishes to resign, the employer is required to process the termination within the period stated in the employee’s written request. Importantly, the retiree does not need to notify the authorities about leaving the job at least two weeks in advance. At any time before the end of the stated period, the retiree may withdraw the resignation application and continue working if no replacement has been called yet. This provision, rooted in Article 80 of the Labor Code, underscores the flexibility afforded to retirees who choose to remain in the workforce.
Another benefit concerns time off for health matters. Law recognizes the right of working retirees to two working days of leave per year for medical examinations, while preserving their job and average earnings during that period. This allowance supports ongoing health assessments without jeopardizing financial stability.
Tax-related benefits also play a role. The Tax Code of the Russian Federation permits a property deduction for expenses tied to the purchase or construction of real estate. The deduction covers the three tax periods preceding the period in which the property is transferred, offering a meaningful reduction in tax liability for retirees who invest in housing. This mechanism aligns with broader goals of stabilizing retirement finances through practical, long-term planning.
In recent years there have been notable changes to pension indexation. Since 2016, insured pensions for working retirees and the fixed payments associated with them have not been indexed in the same way as state and social pensions. This distinction has influenced how retirement income grows over time. However, there was an announcement that targeted indexation for working retirees would be implemented alongside other pension categories starting August of the current year. This development aims to adjust pensions more precisely in line with inflation and living costs, while maintaining fairness across different groups of retirees.
Looking ahead, discussions in the State Duma have included proposals to amend pension legislation. In particular, a draft law titled “On Amending the Law on Insurance Pensions” has been considered, with provisions that include the potential introduction of a 13th pension. As with any legislative initiative, the final outcome will depend on the legislative process, negotiations, and enactment timelines. Note that these developments reflect ongoing efforts to refine retirement income policies and provide clearer guidance for working retirees and pensioners alike.