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Controversial draft might slash sick and maternity pay

Published: 21 October, 2010, 21:52
Edited: 27 October, 2010, 22:45

(13.4Mb) embed video

TAGS: Scandal, Russia, Human rights, Law, Prime Time Russia


In an attempt to bring more money into the deficit budget, Russia’s Social Investment Fund has decided to cut corners on social payments.

According to the new bill, presented to the State Duma, ill-health and pregnancy could cost Russian employees a lot more than before.

If the draft is adopted, those who have been working for the same employer for less than eight years would receive only 60 per cent of the salary as sick pay. Now the term is five years. 80 per cent will be for those with eight to 15 years (now from five to eight); 100% would only be for those having worked over 15 years (now eight).

Also, the amount paid during maternity leave will be calculated based upon how much a woman receives in salary during two years, not one year.

The bill that had already gone through its first reading has been sharply criticized by deputies, employers, and employees alike.

“Under the new law, to get full sick pay not only will you need a whole range of documents, you will also have to be working for the same company for two years and have references from all your past employers stating your average salary there. This is totally irrelevant in the post-crisis era, with loads of people having lost their jobs and are waiting for a new job,” Olga Krylova, a lawyer at the Center for Social and Labor Rights, told RT.

Two State Duma committees even claimed that the new draft directly violates the Constitution, instead of improving social conditions, it makes them a lot worse.

Employers are also opposing the law because it makes them pay a lot more than before.

Draft authors argue that the initiative is aimed at tackling the budget deficit in 2011-13. The Social Investment Fund is heavily indebted, with $5 billion to pay off. The new law, they say, will help pay these debts and bring in the same amount.

The law is to go though its second reading on Friday.

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