The Russians focus on work in the formal sector if it increases their social security, however, almost three quarters of residents think it is low, according to a study of the Center for socio-political monitoring of the Ranepa, which have . In these circumstances, the citizens working officially, you can start to move into the informal sector, said the Director of the center Andrey Departing.
The government does not protect citizens from the economic turmoil at the required level, it is “is one of the main prerequisites for the spread of “shadow” employment,” the study says. The authors conducted a survey which showed that 74.2% of Russian employees consider their level of protection low (however, it is better than in 2009, when the weak protection said 80.8% of the respondents). In total the survey participated 1.6 thousand people in 35 regions.
Now, as shown by the survey data, Russians are not as big a role social guarantees. However, as analysts write, in times of uncertainty they can not be observed, and can cause “social discontent” and a waiver of official work. The connection between white wages and a decent pension population does not feel, according to the study. Next year’s pension freeze for the fourth time in a row, pensions to working pensioners will not be indexed from 2016 and non-working pensioners this year pensions were indexed not in full. The Ministry of Finance and the Central Bank in late September introduced a new pension system that will free employers from mandatory contributions to the funded part of pension, instead, citizens will be expected to remit part of their earnings in their chosen pension Fund. However, against the innovations made by the social block of the government: in charge of his Deputy Prime Minister Olga Golodets believes that this scheme will not work effectively.
Just informal labor market in Russia includes about 30 million people (40.3% of the economically active population), wrote to the Departing in its June survey (.pdf). Completely out of the formal segment, according to his calculations, eliminated 8.7 million people (11.7 per cent), the others “either have not properly executed additional work (at least a few times a year), or get some part of the wages informally, bypassing”. Most often in the informal sector, as noted by the Departing work men under 24 or older than 60 years with secondary education and low incomes.
Attention to these figures drew President Vladimir Putin, Bloomberg reported, citing two of the participants of the meeting on economic policy held in the Kremlin last summer. Putin said that people are forced into a shadow tax and Supervisory authorities, and instructed the participants to find a way to move business out of the shadows. The press Secretary of the President Dmitry Peskov did not comment on this information.
According Ranepa, with the fact that the official salary, “the guarantee of a decent retirement”, I agree, 52.4% of respondents, 34.9% of mind. While 75.7% of respondents believe that there is no need to rely on the state to ensure a comfortable retirement, it is better to achieve on their own (14.1 per cent hold the opposite point of view). More inclined to rely on their own strength employers and self-employed Russians, similar view is shared by the representatives of the informal sector.
Despite “advertising” the fact that the official salary means a dignified old age, many people find it hard to understand what will happen in five to ten years, says Departing. Because of this, for example, a person arranged officially, can afford additional employment, which will not be legally binding.
People are moving into the shadow, but this is unlikely to happen because of the low social protection, argues the Director of the Centre for labour market studies Higher school of Economics (HSE) Vladimir Gimpelson. “What in the informal sector, higher social protection?” the expert says, and indicates that wages in it are lower by about 20%. The main reason for shadowing, according to Gimpel’son, — lack of other options of livelihood, when formal employment is reduced.
On the eve measures for the withdrawal of the Russians from the shadows suggested the Ministry of Finance. In the draft guidelines for tax policy for the next three years, which was developed by the Agency, it is proposed to give citizens the opportunity to voluntarily report on employment in the informal sector. In return, they are not allowed to pay income tax until 31 December 2018. Offer applies only to individuals who provide services (cleaning, housekeeping, tutoring, supervision and care of children, sick and elderly) to other individuals and thus are not individual entrepreneurs.