Russian Deputy Prime Minister Tatyana Golikova outlined how the pension index is expected to be determined: it will depend on the annual growth of wages minus the rate of inflation for the same year. This principle was reiterated by the government official during remarks cited by the news agency Hit the Primer, underscoring a wage-based approach to adjusting pension benefits.
Golikova explained that the overall percentage of pension growth for 2024 will be established by examining the escalation of the wage fund within the year. The resulting figure will serve as the foundation for incrementing pensions. In practical terms, the calculation translates into an indexation that aligns the pension increase with the observed inflation level in 2024, with the actual adjustment scheduled to be applied from April 1, 2025 through February 1 of the following year, ensuring pensions reflect recent price changes while incorporating wage dynamics.
Historically, this calculation framework was in operation in Russia up until 2019, after which it underwent adjustments. Golikova noted that even under the revised system, the minimum pension increase following indexation would be kept at a modest level, with a target trajectory around a specific nominal amount to preserve pensioners’ purchasing power amid price shifts throughout the year.
Recently, the State Duma gave its initial approval to a draft law addressing pension indexation for working retirees. If enacted, the measure would impact roughly eight million individuals, extending protections to those who continue to work while receiving retirement benefits. The discussions focus on how to calibrate the indexation to reflect both wage growth and inflation, while maintaining fiscal responsibility and ensuring the policy reaches those who remain economically active and reliant on pension support.
In reviewing the legislative steps, observers have asked when the proposed changes to pension indexation for working Russians might become law. The process includes debates in the lower chamber, committee scrutiny, and potential revisions before any final passage. Stakeholders are watching closely to understand how the indexation will operate in practice, how it will affect monthly pension amounts, and how it will align with broader social and economic objectives for retirees and workers alike.