The Ministry of Finance of the Russian Federation received a proposal to pay mandatory insurance premiums for employees based on the minimum wage. The agency informs about this in a letter dated November 6, 2019 No. 03-15-05 / 85280.
The initiators of the changes proposed for payers of insurance premiums making payments and other benefits to individuals (employers) to untie the calculation of insurance premiums from the salaries of their employees and establish a basis for calculating insurance premiums for each employee in the amount calculated from the minimum wage increased by 10 – 20%.
In this regard, the Ministry of Finance recalls that insurance premiums are paid for compulsory social insurance of citizens and are a source of financial support for the realization of the right to receive insurance coverage for the relevant types of compulsory social insurance: pension, social and medical.
In the case of payment of insurance premiums for employees on the basis of the minimum wage, the possibility of forming pension rights of employees in full will be excluded. In the future, this approach may lead to a restriction of citizens ’right to pensions, since in the current pension insurance system the size of the future pension directly depends on the amount of funds in an individual personal account received by the FIU from all payments in favor of the employee.
Thus, a decrease (minimization) of the fiscal burden on the payment of insurance premiums will lead to under-receipt of insurance premiums, in particular, to the budget of the Pension Fund of the Russian Federation and, accordingly, to a decrease in the amount of pension rights of citizens.