Russia mulls incremental retirement age increase from 2019

MOSCOW, Nov 23 (PRIME) -- The Russian government is discussing a retirement age increase by 3 months a year for men under 65 and for 6 months a year for women under 60 starting from 2019, Director of the state Pension Fund Anton Drozdov said in a presentation demonstrated on Wednesday.

The measure is to reduce payments of the federal budget to the Pension Fund by 638 billion rubles by 2030 to 1.4% of the gross domestic product (GDP) from 2.5%.

The payroll tariff incentives will be partially replaced with subsidies to companies and new incentives will be prohibited. The payroll tax on high salaries is to be increased, as well as the payroll tax for facilities with hazardous work conditions.

The government also proposes starting charging a payroll tax on individual entrepreneurs.

(63.6282 rubles – U.S. $1)

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