Russian labor minister wants firms to stop pension contributions

MOSCOW, Apr 23 (PRIME) -- Russian Labor Minister Maxim Topilin has suggested companies stop paying the payroll tax from which pensions and obligatory medical insurance is financed, RIA Novosti reported Wednesday.

“I would like to suggest the following system: an employer must agree with the trade unions not to pay the payroll tax for workers, and pensions will not be formed from this money for employees. Why would the government pay to give privileges to individual sectors?” Topilin told reporters.

The payroll tax in Russia stands at 30% of salaries, while the reduced rate is 20%

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