Mikhail Mishustin: “The Government remains committed to improving the well-being of citizens. Key measures include strengthening the social protection system, advancing labour market development, and supporting employment initiatives.ˮ
Mikhail Mishustin chairs a strategic session focused on poverty reduction, narrowing inequality, and increasing the real incomes of citizens
Mikhail Mishustin chairs a strategic session focused on poverty reduction, narrowing inequality, and increasing the real incomes of citizens
Mikhail Mishustin’s opening remarks:
Good afternoon, colleagues.
During the plenary session of the St Petersburg International Economic Forum, the President highlighted that Russia has achieved a historic reduction in poverty levels, stating that we have reached the lowest poverty rate in the country’s history. As a reminder, the poverty rate stood at 7.2 percent last year.
In line with the national development goals set by the President, this figure is targeted to fall below 7 percent by 2030.
The Government remains committed to improving the well-being of citizens. Key measures include strengthening the social protection system, advancing labour market development, and supporting employment initiatives.
Supporting families with children remains a top priority, and a comprehensive range of assistance measures is in place to meet their needs. The unified benefit, introduced at the President’s instruction for low-income families and pregnant women, has proven effective. In the past year, it was provided to 10 million children and 140,000 expectant mothers. This year, budgets at all levels have allocated 1.8 trillion roubles to fund this support.
In response to citizen feedback, the Government is streamlining the process to make access to assistance more convenient. For instance, since January, if parents already receive benefits for older children, the same support is automatically extended to newborns without the need for additional paperwork or applications.
Colleagues, it is essential that we give special attention to large families in our efforts.
This year, at the initiative of the President, standard tax deductions for second and subsequent children have been doubled, allowing families to retain more funds in their household budgets. This increase can amount to as much as 25,000 roubles annually.
Furthermore, beginning in June next year, an annual family payment will be introduced for working parents with two or more children whose income is below one and a half times the regional subsistence minimum. They will receive partial compensation for personal income tax paid. For these families, the tax will be recalculated at a reduced rate of 6 percent, with the difference refunded.
This is a new support measure, and preparations for its implementation must begin now. It is essential to fine-tune all related processes in advance and adjust information systems to ensure that procedures are straightforward and user-friendly, with no technical issues. I urge the Ministry of Labour and the Social Fund to give this matter special attention.
Now, turning to the older generation, which also requires state support and care. As of 1 January 2025, insurance pensions were initially increased by 7.3 percent. Subsequently, following the President’s instructions, they were raised further in line with an inflation rate of 9.5 percent. Notably, at the initiative of the Head of State, indexation of insurance pensions for working pensioners has been reinstated.
Starting in 2026, insurance pensions – for both retirees and working pensioners – will be adjusted twice annually. In February, pensions will be increased based on the previous year’s inflation rate, and in April, they will be further raised in accordance with the growth of the Social Fund’s revenues.
On the whole, we will continue to upgrade and simplify processes for allotting and providing various privileges, payments and benefits. With this in mind, we continue to introduce and improve social treasury mechanisms. Consequently, benefit-seekers no longer have to contact specific agencies and obtain any additional documents. All they have to do is submit just one application or none at all in some cases. Authorities immediately provide proactive assistance.
Over 60 state support measures have already been converted to these principles. It is necessary to complete similar work on 12 other federal measures before the year is out, just as we have planned.
In this connection, I would like to ask the top managers of all agencies to ensure close-knit collaboration, so that benefit-seekers would obtain state assistance in the most comfortable and simplest manner.
Colleagues,
Today, we will discuss the situation with employment and popular incomes separately.
As instructed by the President, the Government consistently raises minimal wages, while outpacing inflation. Since January, minimal wages have soared by over 16.5 percent and reached 22,400 roubles. We need to post at least the same growth next year. This is very important for about four million people whose wages are pegged to this indicator.
Minimal wages are to reach 35,000 roubles by 2030, as per the President’s instruction.
We will continue to assist job-seekers.
Free retraining programmes have won a reputation for themselves in this respect. Last year, about 135,000 people completed these courses. In the past six years, nearly 900,000 completed them under the Demography national project. Most graduates were successfully employed and were able to boost their incomes after acquiring new skills.
This support is currently provided in accordance with the new national project titled Human Resources. About 100,000 people will be trained annually.
It is necessary to continue creating favourable conditions across the country, so that people would be able to build careers and receive worthy wages.
We will discuss all these issues today.
