Alteration in Child Benefit Program Effective from May 15th
Here's a fresh take on the revised family support mechanisms in Russia:
** Streamlining Support:** Deputy Sergei Gavrilov laid out key modifications to the family support system, focusing on speeding up assistance for those experiencing income declines. The primary adjustment involves reducing the assessment period for calculating family income, with three or six months now being taken into account.
Flexible Support: In addition to the revised calculation period, a margin of tolerance for income excess has been introduced. This means families can continue to receive support even with a slight surplus in income. The specific tolerance coefficient hasn't been revealed yet, but it indicates a shift in focus from formal income figures to a family's real financial circumstances.
Simplified Income Calculation: The method of calculating income will also undergo a change. Income will now be based on the actual amount received by the family, rather than including paid National Disability Fund (NDF) payments. This reform is expected to boost the number of eligible families, particularly working parents with lower salaries.
Support for Large Families: Starting in 2026, parents with two or more children and an income below 1.5 times the living wage may see a reduced NDF rate of 6%. The difference between the standard rate (13%) and the new one will be refunded automatically. Parents will need to verify their eligibility annually via Goservices, MFC, or Social Fund offices between June 1 and October 1.
Improving Family Welfare: These changes aim to enhance the family support system and reduce the administrative burden associated with benefit applications. Deputy Gavrilov also proposed extending the uses of maternity capital and establishing a guaranteed minimum income for families with children.
It's worth noting that the average single child benefit in Russia was 14,900 rubles in 2024, and is expected to be 8,800-17,700 rubles for families with children and 9,600-19,300 rubles for pregnant women in 2025. Keep an eye on our Telegram channel @expert_mag for more updates on this evolving situation.
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- The change in calculating income will mean that families will now have their income based on the actual amount they receive, rather than including paid National Disability Fund (NDF) payments.
- A margin of tolerance for income excess has been introduced, allowing families to receive support even with a slight surplus in income.
- In 2026, parents with two or more children and an income below 1.5 times the living wage may see a reduced NDF rate of 6%, with the difference between the standard rate and the new one being refunded automatically.
- Families receiving support and managing their personal-finance are expected to appreciate the shift in focus from formal income figures to a family's real financial circumstances, as it intends to boost the number of eligible families and reduce the administrative burden associated with benefit applications.
