Social pensions will increase from April 1

© RIA Novosti / Dmitry to Attachability in fotoreceptor of the government of the Russian Federation Dmitry Medvedev holds a meeting with members of the Cabinet of Ministers of the Russian Federation. 22 Mar 2018Social pensions will increase from April 1© RIA Novosti / Dmitry attachability to the photobank

Prime Minister Dmitry Medvedev signed a resolution on adjusting social pensions starting 1 April. He said this at a government meeting.

«We are doing this by law every year. The paper argues the size of the factor by which the increased pension. Now we are for this purpose allocated about 10 billion rubles,» — said Medvedev.

According to him, the allowance will receive four million people.

He noted that the recalculation will affect the payments, the amount of which depends on the growth of the social pension.

Later on the government website published the text of the regulation. According to the document, the subsistence level in Russia as a whole for the year 2016 totaled 8081 ruble, 2017 — 8315 rubles growth index — 1,029. Thus, the indexing rate will lock at the level of 1,029.

The cost of indexation of pensions and other social benefits will exceed 9.5 billion rubles. The average value of the allowances will be 255 rubles.

Indexing above inflation

On Wednesday, the Minister of labour and social protection of Russia Maxim Topilin said that his office is engaged in the development of proposals for the indexation of pensions above the rate of inflation.

«We are going through the budget cycle, primarily 2019 -2021 years, to prepare system proposal, to reach the solution of new tasks set by the President,» he said.

The Minister noted that such indexing has already held this year. Its size was 3.7%.

Earlier, Deputy Prime Minister Olga Golodets said that for «rapid» increase of pensions it is necessary to support economic growth.

«If they executed those plans and the expectations for growth in labor productivity, the growth of our economy, the funds will be sufficient to fulfill all the orders (of the President). Now there are estimates,» she said.

Instructions To The Federal Assembly

During a speech with his annual address to the Federal Assembly, Vladimir Putin drew attention to the need for regular «priority» allocation of social benefits.

«The main thing is we need to increase the size of pensions, to ensure their regular indexation, and higher inflation. We will be trying to reduce the gap between pensions and wages, which were humans before retirement,» — said the head of state.

According to Putin, the main aim of social policy should be the reduction of poverty and ensuring sustainable growth of real incomes.

«Sufficient funds»

According to presidential aide Andrei Belousov, the tasks of the Federal Assembly, would require spending equivalent to 1.5% of GDP. In this specific amount he did not name.

«So right now, these calculations are specified. Of course, we will try to clarify. We are talking about the size, if we talk about the sixth anniversary, of the order of 1.5% of GDP. This is quite a lot, but not fatal, bearing in mind that our entire budget — about 30% of GDP,» — said Belousov told reporters.

He also noted that in the case of successful implementation of presidential decrees of Russia could overtake the German economy by purchasing power parity.