News about the introduction of a fine for unofficially working pensioners in the amount of 120,000 rubles is widely discussed in the information space. This information is not yet true, but there really are sanctions for pensioners for working part-time.
In the article we will look at whether a fine will be introduced for working pensioners in 2020-2021 at the initiative of the Pension Fund, the Federal Tax Service or another supervisory agency, what threatens pensioners for official and unofficial labor or entrepreneurial activities, and whether it is beneficial for pensioners not to work at all during their well-deserved rest.
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What rumors are being spread?
Many information sites have already written that a new fine is being introduced for unofficially working pensioners in 2020-2021 - 120 thousand rubles. Most of the headlines of such news in not the most authoritative information sources use precisely this kind of rhetoric. At the same time, as a rule, the articles do not contain references to current regulations, bills or statements of officials, or publications on the official websites of government agencies.
In addition, the following facts usually appear in such news:
- The tax authorities officially warned about holding pensioners accountable;
- a fine for unofficially working pensioners is planned to be introduced by a separate law in the new year;
- The tax office and the Pension Fund monitor receipts to pensioners' current accounts in order to track illegal income.
All these statements are untrue, as will be discussed in detail below.
Rules for calculating and confirming experience
The periods of work according to the work book before the employee’s registration with the Pension Fund of the Russian Federation, that is, before the issuance of a pension insurance certificate, are counted as the length of service for granting a pension. After this date, only those periods about which information is available in the Pension Fund will be counted. They are submitted quarterly by the employer.
Accordingly, if there is no concluded employment contract, then insurance premiums are not paid and there is no information about the length of service of such an employee in the Pension Fund.
If a person works under contract agreements or author’s orders, then the amount paid to him is also required to transfer insurance premiums, and the period of work under the contract will be counted as length of service.
Since 2015, accounting rules have changed. Now the length of service depends on the amount of contributions paid and is calculated as follows.
If the amount of payments in the current calendar year is not less than 18,610 rubles (the amount of a fixed payment in the Pension Fund for individual entrepreneurs), then a full year will be counted towards the length of service. If less, the length of service will be calculated in proportion to the actual amount in months, but not less than one per year.
Periods of caring for children up to one and a half years old (no more than 3), for disabled people of group 1, disabled children, military service will be counted in full. But to grant a pension, not only length of service is required, you need to collect another 30 pension points.
What really happened
The source of rumors and a wave of news about fines for pensioners receiving illegal income is a publication on the website ussurmedia.ru. The article states, verbatim, “working pensioners were warned of a fine of 120 thousand rubles.” What is this punishment for? For “part-time work”, “unofficial employment”, which leads, as the author of the article puts it, to “a kind of fraud”. After all, a working pensioner does not have the right to pension indexation.
Thus, an unofficially working pensioner, hiding information about additional income and employment, receives an increased amount of support illegally. And law enforcement agencies will be able to obtain information from the tax office, which tracks income in accounts, and from the Pension Fund, which controls the employment of citizens.
At the same time, the author does not provide any links to regulations (they are not in the article at all), nor to publications from official websites of government agencies. Dubious news has also migrated to some news sites, for example, ura.ru.
OPS system
Pension provision in the Russian Federation assumes that citizens of the country are participants in the compulsory insurance system. Contributions to the Pension Fund are paid by the employer for each worker. Their size is 22% of the salary.
Individual entrepreneurs and private practitioners (lawyers, notaries) belong to the category of employed people who independently pay into the fund. If they involve hired workers in their activities, an obligation arises to make payments for the employees.
If insurance premiums are paid on reduced earnings or not paid at all, this leads to a reduction in the size of the pension, even to the absence of the right to it.
Any employer whose employees are paid their salaries in an “envelope” deprives them of a decent amount of state support in the future. After all, contributions to the Pension Fund are not charged on “gray” income.
Photo: Business community / flickr
In addition, today's old people also suffer from this. Part of the insurance payments is allocated to provide them.
Calculation features
When assigning a monthly benefit, the size of the “individual pension coefficient” or point is taken into account. At least 30 of them are needed for the right to work benefits in old age to arise after 2024.
In 2021, insurance benefits due to age are accrued subject to:
- experience – from 10 years;
- IPC values – from 16.2.
The period for which contributions were paid is called the insurance period, while the funds transferred to the Pension Fund are transformed into points that make up the IPC. It is these two indicators that will determine whether a citizen has the right to payments or not.
If the work is paid at the minimum (in the amount of the minimum wage), with the rest of the amount received in an “envelope”, it will take at least 30 years of continuous experience to accumulate those same 30 points.
For reference! Unemployed citizens, Russians who work abroad, self-employed persons and entrepreneurs can purchase missing pension points.
Despite the fact that the territorial bodies of the Pension Fund of Russia, in cooperation with tax authorities, the migration service, the labor inspectorate, and municipal authorities, are trying to control the situation with informal employment and “gray” wages, this problem has not been fully resolved. There are those who, on the one hand, are willing to pay and, on the other, receive unofficially, even at the risk of receiving only social benefits as a result, and five years later. Even if it does earn insurance, it will be of a very small size.
Are there any exceptions
Official length of service is the period when the employer makes contributions to the fund for the employee. If this did not happen, there is no reason to count on an insurance pension.
And rightly so. Thus, a person employed in the economy makes a personal contribution to the functioning of the pension system, and therefore has the right to rely on appropriate material support in old age.
Screenshot of the pfrp website
But this does not mean that citizens who do not have appropriate entries in their work books will remain in old age without financial support. Without the required length of service, they will be able to count on a social pension.
Like really
There is no bill introducing fines for unofficially working pensioners. Does current legislation provide for a fine for pensioners for part-time work or unofficial employment? There is no specific corpus delicti in the Criminal Code of the Russian Federation. However, there is Art. 159.2 - fraud with payments (receiving an indexed pension while continuing to work may well be considered such), and Art. 198 - tax evasion (a citizen is required to pay the appropriate income tax on any income).
According to Art. 159.2 of the Criminal Code of the Russian Federation, the fine can reach 120,000 rubles. Article 198 of the Criminal Code of the Russian Federation can also hypothetically apply to illegal workers, but only if the damage (non-payment of taxes) has reached large proportions (900,000 rubles over three years).
How can government agencies prove a crime?
No official warnings from the tax office or the Pension Fund of the Russian Federation were published against pensioners who are not officially registered at work or who are engaged in part-time work. Thus, the Pension Fund of Russia has already denied the news and clarified that it does not perform supervisory functions, is not involved in identifying illegally working citizens and is not vested with the authority to transfer information to law enforcement agencies. The Pension Fund receives information about employees and contributions directly from employers.
As for the tax inspectorate, according to paragraph 1.1 of Art. 81 of the Tax Code of the Russian Federation, it has the right to request information about the movement of funds in a citizen’s account. However, this requires a basis in the form of an official inspection.
Is it profitable for a pensioner to work?
So, a working pensioner cannot count on indexation of his pension. In accordance with Art. 26.1 FZ-400, starting from 2021, the indexation of their content is “frozen”, while the pension amount is adjusted, but by a different percentage. In accordance with the same norm, after dismissal and termination of employment, the pension is adjusted taking into account all indexations carried out while the citizen was working.
Also, a working pensioner is not entitled to the following payments:
- social old-age pension, while continuing to work, it is not assigned on the basis of Art. 11 FZ-166 - if it turns out that such a pensioner has started working, they will be forced to return the pension;
- social supplement to pension to ensure income at the subsistence level in accordance with Art. 12.1 FZ-178;
- various regional surcharges in accordance with local legislation. As a rule, the condition for their appointment is termination of employment.
Work under a contract for pensioners
1. I work under a contract, I am a pensioner, there is no sick leave, no payment for tickets, no concessions. Is this legal?
1.1. Hello! If a GPC agreement is concluded, then yes, it is legal. Perhaps it makes sense to recognize him as an employee through the court.
1.2. If you work officially under an employment contract, you must have sick leave and vacations. You have every right to file a complaint against your employer’s actions with the State Labor Inspectorate. You can also file a complaint with the prosecutor's office.
1. The prosecutor's office, in accordance with their powers, resolves statements, complaints and other appeals containing information about violations of laws. The decision made by the prosecutor does not prevent a person from going to court to protect his rights.
1.3. If you didn’t sign an employment contract, then everything is legal. Perhaps the court will be able to recognize some kind of employment contract concluded with you.
2. Is it necessary for a temporarily employed pensioner to work under a contract? I worked for 2 weeks and decided to quit, they said I had to work for 3 days. If necessary, from what time is the working time calculated?
2.1. Good afternoon. Warning about upcoming dismissal should always be given in advance, regardless of whether a temporary or permanent employment contract is concluded. The notice period for upcoming dismissal is counted from the day following the filing of the application.
3. If a pensioner works under a civil contract, will the pension be indexed?
3.1. Good day Olga. There is no social package, that's the only downside.
4. I am a pensioner, 68 years old and have not worked. I want to rent out an apartment under a contract. Will I have to pay tax?
4.1. Good afternoon. Yes, you are required to pay personal income tax.
5. I am a pensioner, I live in the city of Apatity, Murmansk region. I work under a GPC agreement (I renew the GPC agreement for a year every year), and contributions are made to both the Pension Fund and the tax office. Once every 2 years, for non-working pensioners living in the Far North, the Pension Fund pays for travel to and from their holiday destination. In 2021, the Pension Fund paid for my travel, but now the Pension Fund demands that I return this amount, because... believes that I am a working pensioner. Is the action of the Pension Fund legal?
5.1. Yes, of course it’s legal, because you are a WORKING pensioner. It does not matter whether you work under an employment contract or under a GPC agreement.
6. I am a pensioner, under a contract I work as an electrician in a HOA, in connection with the communal reorganization in the city administrative district, an Emergency Dispatch Service is being created, and the HOA is forced to join it, which is why I was asked to resign. Can I get any compensation because I was fired without my initiative?
6.1. Dear Nikolai, you can receive monetary compensation due to dismissal at the initiative of the employer. When dismissing a pensioner, the employer is obliged to pay him for basic payments (salary, vacation compensation, additional payments provided for in the employment contract) and additional payments, which include severance pay for the first month.
7. I am a pensioner. Currently I am working under the GPC Agreement. Deductions are made. Will my pension be recalculated after completing work under the contract?
7.1. Hello! Under the GPC agreement, no contributions are made to the Pension Fund, only to the tax office. Work under a GPC contract is not included in either the labor or insurance period.
8. A pensioner of the RF Ministry of Defense, I work under a fixed-term contract, I spent every year, the last one was extended for 3 months, they don’t want to renew it anymore. My age is 71 years old. I am efficient, my position is not being reduced, I have no comments. What to do?
8.1. Dear site visitor! And what form of organization do you work with (state, joint-stock company, etc.).
8.2. Hello, I propose an option - to have the contract recognized in court as indefinite.
9. I am a pensioner born in 1960, but I work under an employment contract. I am entitled to receive a lump sum payment from the funded part of my pension.
9.1. According to paragraph 1.3 of Art. 6 of the Federal Law of December 28, 2013 N 424-FZ “On funded pension”, the right to a funded pension is granted to insured persons: men who have reached the age of 60 years, and women who have reached the age of 55 years, subject to the conditions for the appointment of an old-age insurance pension, established by the Federal Law “On Insurance Pensions” (availability of the required insurance period and the established value of the individual pension coefficient). a funded pension is assigned to insured persons if there are funds from pension savings accounted for in a special part of the individual personal account of the insured person or in the pension account of the funded pension of the insured person, if the amount of the funded pension is more than 5 percent in relation to the amount of the old-age insurance pension (including with taking into account the fixed payment to the old-age insurance pension and increases in the fixed payment to the insurance pension), calculated in accordance with the Federal Law “On Insurance Pensions”, and the amount of the funded pension calculated on the day the funded pension was assigned. If the amount of the funded pension is 5 percent or less in relation to the amount of the old-age insurance pension (including taking into account the fixed payment to the old-age insurance pension and increases in the fixed payment to the insurance pension), calculated in accordance with the Federal Law “On Insurance Pensions” , and the amount of the funded pension calculated on the day the funded pension was assigned, insured persons have the right to receive the specified funds in the form of a lump sum payment.
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10. I am a pensioner of the Ministry of Internal Affairs, I am 59 years old. From time to time I work under civil law contracts. Will my pension be indexed?
10.1. Under Agency agreements, there are no contributions to the Pension Fund, so these agreements do not affect pensions.
11. Under a contract, I am caring for a pensioner; he is 84 years old; I do not work. Experience suits me. When does the care contract end? From the moment I submit documents to receive my pension or from the moment I actually receive my pension. From the experience of relatives, they submitted documents and applications for a pension, but in fact received it after 2.5 months. My experience will last until I reach retirement age or until I receive an income (pension) Thank you)
12. I am a pensioner, working under a contract for a period of three months, extending the contract, without pay for vacation, sick leave, etc. Am I entitled to indexation of my pension?
You did not specify whether you are working under an employment contract or a GPC agreement.
13. I am the guardian of an 80-year-old pensioner. Can I work on the Internet under a contract without work and while sitting at home? The contract states that the Internet company itself pays 13% tax contributions to pensions, etc.
13.1. You need to read this agreement.
14. We hired a pensioner born in 1955 under a fixed-term employment contract. The contract has expired. We will not extend it. How to properly fire an employee.
14.1. In accordance with Art. 58 of the Labor Code of the Russian Federation, in the case where neither party has demanded termination of a fixed-term employment contract due to the expiration of its validity period and the employee continues to work after the expiration of the employment contract, the condition on the fixed-term nature of the employment contract loses force and the employment contract is considered concluded for an indefinite period term. If the employee does not want to quit, you can offer him an agreement between the parties, for example, you pay the employee 2 salaries and he quits. This is a legal and correct method of dismissal.
14.2. If the contract has expired and the employee continues to work, the contract is considered unlimited. In your situation, only on the basis of Article 78 of the Labor Code of the Russian Federation, an employment contract can be terminated at any time by agreement of the parties to the employment contract.
15. A non-working pensioner begins work on February 4 under a fixed-term employment contract for 1 month. He is already receiving a pension, taking into account indexation for 2021. After 1 month it will not work. How will this affect your pension?
15.1. Good afternoon Leonid, this year your pension has already been recalculated; if you get a job, the amount of your pension will not change (Article 26.1 of Federal Law No. 400-FZ).
16. Question: If I, an old-age pensioner, work under a contract, am I entitled to some kind of pension supplement?
16.1. If you work officially and your employer pays insurance contributions to the Pension Fund for you, then in August you will have to set a new pension amount, taking into account information about your work for the previous year.
17. I am a pensioner. Since November I have been working under a contract for the provision of paid services. My pension has been indexed since January 2021. Am I breaking the law?
17.1. Good afternoon Nikolay, if you receive a salary and insurance premiums are paid for you, then yes, this is a violation and the pension fund will definitely discover that you are working and demand the overpayment be returned.
18. If a pensioner worked under a contract for only three months, will he receive indexation?
18.1. Contact the Pension Fund, and in a month they will start paying with indexation.
19. I am a pensioner (not working). In October-November 2021, I performed work under a contract for the provision of expert services. At the end of December, my services were paid (minus 13%), the contract expired. On January 6, 2021, I received a pension without indexation (obviously, I was considered a working pensioner). Is it correct? After all, I do not receive a salary, but received only a one-time payment for services rendered.
The pension fund is completely wrong.
20. I am a military pensioner. Currently I work under an employment contract in a commercial organization. Am I required to pay via social media? fund and income tax? If so, what is the percentage and do I have any benefits? Thank you.
20.1. Income tax must be withheld.
21. I am a pensioner. Now I'm getting a contract job. Will the Pension Fund pay me anything extra? Thank you.
21.1. It depends on what you mean by paying extra. If a pension is assigned, you will continue to receive this pension, just while you are working - the pension will not be indexed.
22. In an organization, a pensioner works on a fixed-term contract; he was notified 2 weeks in advance that the contract was expiring; the employee signed the notice. Now the manager has decided to extend the contract with him for another year. how to do the right thing, fire and accept, or you can conclude an additional agreement. agreement to TD?
22.1. Hello! If, according to the employment contract, it is possible to conclude an additional agreement, then this can be done, if not, then dismiss and accept.
23. I am a pensioner, I don’t work. I bought an apartment this year under a shared construction agreement. The house will be put into operation in 2021. I will arrange the apartment in my name. Can my husband (the marriage is officially registered and the husband works) receive a tax deduction for the purchased apartment? After all, the property of the spouses is common property - although the apartment will be registered in my name, half still belongs to the husband (in any case, when selling my real estate, notarial consent was required from my husband). Does this right also apply when receiving a tax deduction?
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23.1. In fact, yes, if a spouse registered real estate only in his own name, it is still considered acquired during marriage, and therefore the second spouse has the right to receive a deduction. In this case, the property tax deduction is provided to spouses in the same way as it was distributed when purchasing housing into the total joint value, indicating both spouses. That is, it can be divided between spouses in any shares that they confirm in the corresponding application to the tax authorities.
24. Hello, I am a military pensioner, if I get a job under a contract, what will happen to my pension, will I receive it and in what amount? Thank you.
24.1. Dear site visitor! If you do not return to service, you will receive a full military pension when you get a job.
25. I am a co-founder of an LLC, but I do not work under an employment contract. Am I a non-working pensioner under the new pension law?
25.1. Owning shares in an LLC does not relate to employment relations. You are not an employee of this LLC; the organization does not pay insurance premiums for you. You are a non-working pensioner.
26. Labor law. Hello! I am a pensioner, I work remotely at a bank under a GPC agreement. It always worked successfully. In September from 3-17 I was on vacation. And on September 17, when I returned on the same day, I had a sharp attack of sciatica. I called an ambulance twice on September 17 and 18. Then, on September 27, I took sick leave. But I said that if I have a physical opportunity, I will go on the phone. Line to work. And at the end of the month, I was given a deduction for not meeting the required number of hours. I sent out sick leave again, I still have it open. You still need to work out a time standard. Could this be possible?
26.1. Hello, this can actually happen if your employer’s local regulations stipulate that all premiums are at the employer’s own risk. Ask him for this provision - on the payment of bonuses Art. 8 Labor Code of the Russian Federation.
26.2. Yes, this can happen because GPC does not provide guarantees of an employment contract. You need to read about the terms in your contract.
26.3. Hello, Inna!
The norms of labor legislation do not apply to legal relations arising on the basis of a civil contract. Payment for work performed is carried out for the volume of work performed in accordance with the terms of the relevant contract.
From the situation you described, payment under your contract is based on the number of hours. Being on sick leave will not affect the calculation of the cost of work performed by you.
You should carefully read the section of the agreement regarding the payment procedure.
27. I am a pensioner, I work under a contract for an individual entrepreneur. I sprained my leg and the tendon tore, I have to undergo surgery.. Is sick leave paid for by contract workers?
27.1. Hello. Under a service agreement? Hardly. Sick leave will only be paid if you have an employment contract. Look at the name of the agreement and everything will become clear to you. Get well soon!
