• Temporary disability benefit (only for citizens exposed to radiation); • Pregnancy and childbirth benefit;
• Lump-sum benefit for women registering pregnancy with medical institutions at early stages;
• Lump-sum benefit after the child’s birth;
• Monthly childcare benefit.
The Social Insurance Fund of the Russian Federation has emphasized that the Mir bank card is the only payment card to be used when an individual receives pensions, social benefits and other social payments funded from the budgets of the budget system of the Russian Federation. If the employee has chosen a non-cash transfer of funds to a bank card as the preferred method of receiving social payments, then the employer should make such payments to the Mir card.
The new rules apply to social payments that were assigned after May 01, 2019, or that had been assigned prior to that date but were paid for the first time after this date.
For individuals already receiving social payments using other bank cards, the changes approved by Russian Government’s Decree No. 1466 dated December 1, 2017 shall apply after the validity of such bank cards expires, but no later than from July 01, 2020.
Following our analysis of legislative documents and in order to avoid complaints from employees and supervisory authorities, we invite all employers to consider the possibility of:
• opening accounts not linked to bank cards;
• opening the Mir card for the employee;
• organizing the process of transferring these social payments using separate payment documents.
This is mandatory for employers who are located in the regions participating in the Direct Payments project of the Social Insurance Fund of the Russian Federation.
Be advised that the Mir card may be applied for and issued to:
• the employee by choosing a bank independently (information is available at mironline.ru);
• the employer by entering into an additional agreement with the credit organization with which the payroll scheme is open.
Should the employee fail, for any reason, to apply for and receive a Mir bank card, the social payments are to be made:
• to such employee’s bank account not tied to any card;
• in cash at the cashier’s desk;
• by mail transfer.
Although the new social payment transfer rules became effective on May 1, 2019, currently the Russian legislation does not provide for imposing any penalties on employers who transfer salaries to their employees’ bank cards linked to the payroll scheme and bank cards chosen by their employees for salary transfer.
Should the laws of the Russian Federation establish any mechanism to check transfers of social payments by credit organizations, information about the use of the Mir card will be provided to you.
If this information does not apply to the activities of your company, please simply take note of it.
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