In Belarus, labour pensions will increase by an average of 24% in February - V. Koroleva

On January 24, Minsk /Elena Prus - BELTA/. In Belarus, labour pensions in February of the current year will be increased by an average of 24% as a result of recalculation. This increase will be felt by over 2.4 million people receiving labour pensions from the bodies of labour, employment and social protection, Deputy Minister of Labour and Social Protection Valentina Koroleva told a BELTA correspondent. She recalled that in accordance with Decree No. 35 "On Pension Increases", recalculations of labour pensions due to the growth of average wages of employees in the republic in 2012 will be carried out quarterly. Thus, the recalculation from February 1 will be made based on the average wage of employees in the republic for the IV quarter of 2011. According to the National Statistical Committee, it amounted to Br2 million 543 thousand 832. The average size of a labour old-age pension is estimated to increase to Br1 million 252 thousand. "The pension amount of each specific pensioner depends on the individual parameters of their work record, earnings, and other data recorded in the pension case materials (including the eligibility for allowances and increases to the pension)," emphasized Valentina Koroleva. The maximum size of a labour old-age pension for non-working pensioners with a record of 40 years for women and 45 years for men, and an individual coefficient of 4.0 or higher, will reach Br1 million 879 thousand 260 from February. For working pensioners with a record of 40/45 years and an individual coefficient of 1.3 or higher, the maximum size of a labour old-age pension will be Br1 million 364 thousand 130 from February. Additional expenses for pension payments from February of the current year in Belarus are estimated at Br603.3 billion per month. "The necessary funds for the payment of increased pensions are available in the Social Protection Fund of the Ministry of Labour and Social Protection," assured the Deputy Minister. "Payments in new amounts will begin on February 1, they will be made in a timely and full manner." Valentina Koroleva noted that from February 1, there will also be another recalculation of minimum labour and social pensions, allowances and increases to pensions in connection with the change in the subsistence minimum budget per capita (SMB).

Furthermore, the Deputy Minister reminded that, according to Decree No. 35 "On Pension Increases" dated January 1, 2012, an additional targeted supplement to pensions for elderly citizens has been established. This supplement will be paid monthly to non-working pensioners aged 75 and over. Supplements have been established for pensions of almost 600,000 individuals receiving pensions through labour, employment, and social protection bodies: for individuals aged 75 and over, it is 75% of the minimum old-age pension amount; for those aged 80 and over, it is 100% of the minimum old-age pension amount. Thus, the January supplement amounts to Br107,770 and Br143,700 respectively. Subsequently, this amount will be adjusted depending on the minimum old-age pension amount. The Deputy Minister of Labour and Social Protection emphasised that the January supplement for individuals aged 75 and over will be paid in February 2012, along with the February pension and its supplement. Financing for this payment is envisaged from the funds of the Social Protection Fund of the Ministry of Labour and Social Protection. It is estimated that expenditures for these purposes until the end of 2012 will amount to Br876 billion. "Lately, expenditures on financing pension payments have been around 10% of GDP," said Valentina Koroleva. "Overall, the growth rate of pensions is comparable to the growth rate of wages in the republic, and the ratio of the average old-age pension to the average wage exceeds 40%." In accordance with Decree No. 35, from May 1 of the current year, pensions will be recalculated based on the average wage of workers in the republic for the first quarter; from August 1, based on the average wage of workers in the republic for the second quarter; and from November 1, based on the average wage of workers in the republic for the third quarter. Additional expenditures of the Social Protection Fund of the Ministry of Labour and Social Protection for recalculating labour pensions this year will amount to Br9.8 trillion.In 2011, Belarus carried out three recalculations of old-age pensions based on the growth of average wages of employees (in June, August, and November). Minimum and social pensions, as well as supplements and increases to pensions, were raised four times (in February, May, August, and November) due to the increase in the subsistence minimum budget per capita (SMB). Taking into account the economic situation, priority attention in 2011 was given to supporting recipients of low pensions. Thus, from June, the supplementary payment to minimum old-age pensions was increased from 15% to 20% of the average employee wage. From August, the amounts of social pensions relative to the SMB were increased. Twice – in July and September 2011 – non-working pensioners received one-time financial assistance.-0-

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