The unemployment benefit in Belarus is much lower than in Western Europe, but also in the CIS countries. Why did this happen and how to change the situation?

Photo: tvk6.ru

Benefit - nowhere less

Belarus lags far behind other CIS countries in terms of the amount of benefits that the state pays to the unemployed, according to the latest data from the CIS Statistical Committee.

Thus, in Azerbaijan, the average unemployment benefit in February 2016 (in equivalent) was $166, in Moldova - $67, in Ukraine - $56, in Tajikistan - $37.

At the same time, unemployment benefits in Belarus are set at $12. In Russia, a similar allowance is differentiated, its size ranges from 11 to 63 dollars.

Government program on social protection and promotion of employment of the population for 2016-2020, adopted in January current year, involves "improving the mechanism of material differentiated support for the unemployed by bringing the amount of unemployment benefits to the size of the budget living wage". From March 1, this is 1 million 640 thousand rubles.

At the same time, the document provides that unemployment in the country in 2016 will rise to 2% and remain at this level throughout the entire five-year period (until 2020).

The old system no longer works

For a significant period of time Belarus had a different concept of social support than other countries. The government considered the problem of unemployment from the point of view that almost everyone can find jobs, respectively, the amount of benefits can be miserable, noted in a commentary for Naviny.by Leading Researcher of the Belarusian Economic Research and Education Center (BEROC) Ekaterina Bornukova.

“In fact, social support went mainly to support inefficient jobs that did not exist in other economies. In those countries where unemployment benefits are more significant, there was no idea to provide everyone with jobs, inefficient jobs were not supported. And the unemployment benefit initially served as a social support”, the expert explained.

This problem affects a large number of people, the BEROC researcher noted. Maria Akulova: “There is an excess labor force in state-owned companies, and in the event of restructuring, a large number of people will enter the labor market, and therefore there may be huge problems.”

Now, according to Maria Akulova, a paradoxical situation is emerging - jobs are being reduced, since the state does not have funds to support them, but compensatory measures are not being taken. Unemployment benefits do not cope with this role, so it is necessary to think about how to change the system, the expert said.

Where can I find resources to increase benefits?

Since the problem is not new on a global scale, it is possible to use the experience of other countries where a similar problem has been successfully solved, says Maria Akulova.

“In the long term, it is necessary to switch to individual insurance, a funded system, in which the employee himself will give part of the funds to create a safety cushion for himself in case of job loss,”— said the expert.

However “This is possible under the condition of macroeconomic stability and low inflationary expectations. So far, this can be regarded as a development vector for Belarus.”

According to Marina Akulova, it is already possible to reform the system of retraining workers:

“Specialties offered by the Ministry of Labor for retraining and advanced training of the unemployed sometimes do not meet the requirements of the labor market. In many countries, the employee is given the right to decide for himself what specialty to retrain and where. A person receives a kind of education voucher and manages it independently in order to receive an education that would increase his chances of getting a job.

Another direction is the creation of conditions under which people would be interested in working for themselves, that is, creating start-ups, starting a business as an individual entrepreneur. “Incentives are possible through the provision of tax holidays, for example, or through the receipt of subsidies by start-up businessmen under certain conditions,”— said the expert.

In her opinion, in the long run, this will give good results: “The state itself admits that small business is almost the only source of growth for Belarus. And such measures could allow stimulating the development of the private sector in the country.”

It is much cheaper to support the unemployed than to support inefficient enterprises, Ekaterina Bornukova emphasized:

“We spend 4% of GDP to support state-owned enterprises. A small part of these funds would be enough to pay unemployment benefits in such an amount that would allow them to maintain some acceptable standard of living.

According to the expert, the amount of unemployment benefits should not be lower than the subsistence minimum budget. And ideally, it should be tied to the size of the salary at the last workplace.

“According to world experience, in the first few months a person receives an allowance, the amount of which is tied to the salary (insurance component), and then the state pays an allowance in the amount of the subsistence minimum”,- Ekaterina Bornukova explained.

Will the President ruin everything?

Find additional resources to increase unemployment benefits while maintaining the current level public spending, impossible, says the head of the Mises Research Center Yaroslav Romanchuk.

In his opinion, it is necessary to transform the budget policy and direct the released funds not to support inefficient enterprises, but to help people: “We need to take a radical approach to budget policy - not to distribute billions of dollars right and left, but to allocate them to support people.”

Yaroslav Romanchuk stressed that it is not worth looking for resources in the field of taxation if the goal is not to destroy entrepreneurship and expel capital from the country.

“The tax burden in Belarus is already prohibitive, so increasing taxes in order to increase unemployment benefits is a road to nowhere,- the expert is sure. — If you increase the burden on the employer, this will lead to the fact that the gray labor market will flourish, and people will try to leave the country to earn more.”

Belarusian officials still cannot appreciate the seriousness of the crisis, they consider the difficulties temporary: “The approach is this – somehow everything is about to resolve. Therefore, nothing needs to be changed, and the president will destroy everything. However, the crisis is serious and for a long time.”

Unemployment benefit - a cash benefit regularly paid by the state for persons who have the status of unemployed.

After submitting documents for registration of the position of the unemployed, the labor, employment and social protection authority must approve the allocation of unemployment benefits.

The procedure for paying benefits is established by Article 24 of the Law of the Republic of Belarus dated June 15, 2006 “On Employment of the Population of the Republic of Belarus”. The amount of the allowance is set depending on the average earnings from the last place of work, as well as on the base amount. For the first 13 calendar weeks it is 70 percent and for the next 13 calendar weeks it is 50 percent of the average wages(income) at the last place of work, but not less than one base unit and not more than two base units, provided that the unemployed person during the 12 months preceding registration as unemployed had paid work (income) for at least 12 calendar weeks on a full-time basis. working day (week) or on a part-time basis (week) with recalculation for 12 calendar weeks with a full working day (weeks);

For the first 13 calendar weeks - in the amount of 100 percent and for the next 13 calendar weeks - 75 percent of the base rate for the unemployed, who during the 12 months prior to registration as unemployed had paid work (income) for less than 12 calendar weeks, as well as for the unemployed after a long break in work (more than 12 months) if they have at least one year of work experience;

For the first 13 calendar weeks - in the amount of 85 percent and for the next 13 calendar weeks - 70 percent of the base rate for unemployed people who are looking for a job for the first time, as well as those who are looking for a job after a long break if they have less than one year of work experience.

Unemployment benefit increases:

By 10% - if an unemployed person has children under the age of 14 or a disabled child under 18;

By 20% - if the unemployed person has at least 3 children under 14 or at least 2 disabled children under 18.

Unemployment benefits are paid:

No more than 26 calendar weeks in every 12 months starting from the date of registration as unemployed;

At least once a month, subject to the appearance of the unemployed in the prescribed manner in the bodies for labor, employment and social protection.

In addition to unemployment benefits, under certain circumstances, an unemployed person may receive financial assistance.

For the unemployed, whose work experience entitles them to an old-age pension, including on preferential terms, the period for paying unemployment benefits is increased for each year of work exceeding the specified length of service by 2 calendar weeks. The amount of unemployment benefit during this additional period is the same as during the second 12 calendar weeks.

For the unemployed receiving pensions, benefits (with the exception of child benefits), unemployment benefits are assigned in the amount of the difference between the amount of the pension, benefits received and the amount of unemployment benefits.

Unemployment benefits may be denied in the following cases:

Termination of an employment contract concluded for an indefinite period, at will, by agreement of the parties, or termination of an employment contract on the grounds provided for in paragraphs 4, 5, 7-9 of Article 42, paragraph 5 of Article 44 and Article 47 of the Labor Code of the Republic of Belarus, as well as dismissal (deductions) for violation of military (academic) discipline, loss (absence) of a source of income as a result of illegal actions;

Failure to submit income tax returns.

In the event that the unemployed were denied unemployment benefits upon registration, this benefit, upon a written application by the unemployed person, can be granted subject to the performance of paid public works and working at the specified jobs for at least 22 total working days. It is paid in the following order: for the first 13 calendar weeks - in the amount of 100 percent and for the next 13 calendar weeks - 75 percent of the base amount.

Article 25 of the Law "On Employment" provides for the suspension of the payment of unemployment benefits for a period of up to three months in the event that the unemployed, without good reason, does not fulfill the monthly rate of participation in paid public works in the manner determined by law.

The average unemployment benefit in May in Belarus amounted to 265.6 thousand non-denominated rubles, Belstat reports. This amount equals 15.4% of the subsistence minimum budget per capita. the site compared how unemployment benefits for Belarusians differ by region, and also looked at what amounts are paid to the unemployed in neighboring countries.

The picture is illustrative. Photo: Dmitry Brushko, TUT.BY

The May average unemployment benefit fell by 7,300 non-denominated rubles compared to April.

The Gomel region leads in terms of the average unemployment benefit in May - 303 thousand rubles, or 17.5% of the subsistence minimum budget per capita (Belarusians received May benefits in millions, so the amounts are indicated in non-denominated rubles).

The least in May was paid to the unemployed in Minsk - an average of 232,400 rubles. Recall that the lowest unemployment rate is 0.7% of the economically active population.

Average allowance per unemployed person in May, in rubles
	Benefit in May	Ratio to BPM
Gomel region
Minsk Region
Brest region
Vitebsk region
Mogilev region
The Grodno region
Around the country

For example, in the Minsk region in May, 233 people received unemployment benefits. The average amount of payments was 275 thousand rubles.

In Russia Unemployment benefits depend on the duration of the job search and on the salary at the last place of work. Payments range from 267 thousand to 1.5 million rubles (all amounts in the text are given in non-denominated Belarusian rubles at the rate of the National Bank on July 15. Now the neighboring country is discussing the issue in order to increase minimum payouts up to 628 thousand rubles, and the maximum - up to 2.5 million.

In Ukraine in May, the unemployed received an average of 1.2 million rubles, according to the State Statistics Service.

Polish unemployed can count on an allowance of 4.1 million rubles during the first 90 days after registration at the labor exchange, and then - 3.3 million.

Recall that in Belarus the amount of unemployment benefits is up to the subsistence minimum budget. The increase in payments is expected to affect those who have lost their jobs due to a reduction in the number or staff of employees, the liquidation of the enterprise. Now the maximum amount of unemployment benefits is 2 basic units.

Meanwhile, in Belarus, for the second month in a row, the number of unemployed. As of July 1, 47.2 thousand people were unemployed. In June, as well as, the number of unemployed decreased by 3.3 thousand. The unemployment rate in the country at the beginning of July remained at the same level - 1.1% of the economically active population.

Unemployment benefit is cash assistance to unemployed people who have officially registered with the local employment service. The period from filing an application to making a decision is up to ten days. If the decision is in favor of the applicant, then for 26 weeks out of 12 months from the date of registration, he will receive benefits.

26 weeks, in fact, this is half a year, divided into two equal periods. Payments vary during these periods. The benefit rate depends on the length of service, the duration of the break in the work experience, the salary at the last place of work and the base amount. Unemployment assistance is paid at least once a month, provided that the recipient is in the employment service with the same frequency.

Application procedure and reasons for refusal

To qualify for benefits, you need to register at the local labor exchange - in the territorial department for labor, employment and social protection. Within ten calendar days from the date of registration on the exchange, employees of the employment service must decide whether to assign assistance or refuse. The law provides for the following reasons for refusal:

• Dismissal from the last job on their own initiative.
• Termination of the last employment contract by agreement with the employer.
• Dismissal from the last job for non-performance of duties or non-compliance with labor discipline. If you were fired for showing up at work drunk, absenteeism, stealing from the workplace, or ignoring safety rules that caused the death or damage to the health of colleagues, the social security authority has the right to refuse.
• A court verdict due to which the employee could no longer perform work duties.
• No income statement.
• Dismissal from the army or expulsion from an educational institution for violation of discipline.
• Loss of a source of income due to their illegal activities.
• Dismissal from the last place of employment under Article 47 of the Labor Code. For example, a gross violation by the boss of his duties, immoral behavior in the field of education, or the refusal of a civil servant to sign an obligation to comply with restrictions to combat corruption.

The employment service for one of the listed reasons may refuse to pay - then the unemployed can sign up for paid public works. After working there for 22 working days, in fact, a calendar month, you can again apply for benefits.

Unemployment benefit amount

If the labor authority has decided to assign unemployment benefits, then a person will receive it for six months every year from the moment the assistance was assigned. That is six months every year. The order of payments and the size are determined by the length of service and breaks in it. Terms are measured in calendar weeks.

• For those who have worked full-time or in full-time terms for 12 or more weeks in the year preceding the assignment of unemployed status, the amount of the benefit is determined by their average wage at the last place of employment. In this case, you will need to provide a certificate of income, and the state will pay 70% of the salary in the first 13 weeks, 50% in the second. In this case, the payout cannot be less than one base value and more than two./li>
• If an employee worked less than 12 weeks of full-time work in the year prior to registration, then the amount of assistance is determined only by the base amount. This also applies to those who have not worked for more than a year, but have at least a year seniority. In such cases, the unemployed person will receive one basic amount in the first half of the payment period and 75% in the next./li>
• For the unemployed with less than a year of service and a long break, the payment in the initial part of the term will be 85% of the base value, in the final part - 70%. The same pay for those who are looking for a job for the first time./li>
• Applicants who receive benefits after working 22 days in public works, at the beginning of the term, the amount will be one basic, at the end - 75%.

Unemployment benefit in Belarus in 2019 per month is:

date	Min. benefit amount	Max. benefit amount	70% BV	75% BV	85% BV
01.01.2020	27 rub.	54 rub.	RUB 18.9	RUB 20.25	RUB 22.95
01.01.2019	25.5 rub.	51 rub.	RUB 17.85	RUB 19.12	RUB 21.67
01.01.2018	24.5 rubles	49 rub.	RUB 17.15	RUB 18.38	RUB 20.83
01.01.2017	23 rub.	46 rub.	16.1 rub.	RUB 17.25	RUB 19.55
01.07.2016	21 rub.	42 rub.	14.7 rubles	RUB 15.75	RUB 17.85
01.01.2015 *	18 rub.	36 rub.	12.6 rubles	13.5 rubles	15.3 rub.
01.04.2014 *	15 rub.	30 rub.	10.5 rubles	RUB 11.25	RUB 12.75
01.10.2013 *	13 rub.	26 rub.	9.1 rub.	RUB 9.75	RUB 11.05

* including denomination

One base unit in Belarus in 2020 is equal to 27 rubles. This means that the standard unemployment benefit will be no more than 51 rubles per month. But there are circumstances in which the amount of assistance is increased:

1. By 10% - if an unemployed child is under 14 years old.
2. By 10% - if there is a child under 18 with a disability, HIV or AIDS.
3. By 20% - if there are three or more children under 14 or two or more minor children with disabilities.

For those who receive a pension or financial assistance from the state, the subsidy will be equal to the difference between the pension or assistance and the benefit that the applicant can claim according to the listed rules.

If there is a length of service that gives the right to an old-age pension, for each year worked in excess of the length of service, the period for paying benefits is increased by two weeks. The amount in this case will be the same as in the second half of the payment period, which the unemployed can legally claim.

Other nuances

If a person is eligible for 52 weeks of benefits, there is no employment opportunity, and there is a year or less left before retirement age, the Department of Labor may offer to grant an old-age pension early.

The amount of the allowance is indexed legally. Payments are retained while performing community service or temporary work. In the latter case, you need to notify the employment service.

Unemployment benefits in Belarus are small, so you cannot count on it as a permanent source of livelihood. But when there is no more income, even modest amounts will help to get through difficult times.

In Belarus, the unemployment benefit is so small that the need to increase it is obvious even to officials. Your Country's Tomorrow figures out how to estimate unemployment and how much the unemployed in neighboring countries are paid. Meanwhile, independent experts agree that state support for the unemployed in a crisis cannot be lower than the subsistence minimum budget.

The fact that the government of Belarus is considering the issue of increasing social benefits unemployed, said Deputy Economy Minister Andrei Tur. The current size of the allowance - about 45 thousand rubles - the deputy minister called "low". Andrei Tur did not say anything about how much this payment could increase. We also note that this year's budget does not include an increase in benefits.

What do government officials promise to the unemployed?

In the first half of 2009, the Ministry of Labor and Social Protection came up with the initiative to increase the allowance for those who lost their jobs and registered with the employment services. Last summer, Deputy Minister of Labor and Social Protection Petr Grushnik noted:

We propose to increase the allowance to 50-60% of the subsistence level (BPM) budget for those laid off for a good reason. The Ministry of Labor's proposal to increase the allowance has already been supported by the Ministry of Economy. Today we are discussing with the Ministry of Finance. Unfortunately, we still disagree, but we will come to a common decision.

In January 2010, Deputy Labor Minister Valentina Koroleva spoke at a press conference in Minsk about increasing scholarships for the unemployed. As for the allowance, its size, according to Valentina Koroleva, is supposed to be tied as a percentage to the BPM. True, it is not yet known how strong.

Most likely, - the Deputy Minister noted, - the amount of the allowance will be such that it does not deprive the unemployed of an incentive to look for a new job.

For the period from February 1, 2010 to April 30, 2010, the average BPM per capita is 255,220 rubles. This is five times the current unemployment benefit.

If the allowance is increased, by how much?

It is obvious that many Belarusians who have lost their jobs are not registered with employment services. Indeed, in addition to the need to periodically report, the unemployed are required to participate in public works. As a result, official unemployment in Belarus, despite the crisis, is not increasing. For the European region, this is a unique phenomenon. However, as the experts of "Tomorrow of Your Country" noted earlier, if the amount of unemployment benefits increases, then Belarus may lose this uniqueness.

In the report "Social Consequences economic crisis in Belarus and Directions for Changes in Social Policy" economists of the Research Center of the Institute of Entrepreneurship and Management Alexander Chubrik and Gleb Shimanovich among the constraining factors of the reform in the field of support for the unemployed note the fear that with an increase in benefits in the country, the number of economically inactive population will increase significantly.

These fears are not unfounded, economists say. - In the case of, for example, a family of four, consisting of a working father, a mother on leave to care for a child under 3 years old, and two children, one of whom is under 3 years old, it would be advisable for the father of the family to refuse work if his income does not exceed 1 million rubles per month (i.e., the average salary in the country). It will be irrational to work at lower wages, since unemployment benefits, child care and targeted assistance provide a family income of just 1 million rubles with the current subsistence minimum budget of 250 thousand rubles.

On the other hand, an increase in the unemployment benefit to the level of the BPM would make it possible to abandon the support for excessive employment in enterprises and increase their efficiency and competitiveness in foreign markets.

The unemployed have more money abroad

And yet, if you raise it, then who should you focus on? Former Minister of Labor and Social Protection Alexander Sosnov believes that unemployment benefits certainly should not be lower than the subsistence minimum budget.

The amount of the benefit, in my opinion, should be determined by the amount of wages that a person received before he was fired. If we take the law "On Employment of the Population of the Republic of Belarus", adopted in 1991, then it is this norm that was incorporated into it, and then disappeared, - reminds the former minister.

This is not the easiest task, but it is quite solvable. In the meantime, in my opinion, in Belarus, the issue of unemployment benefits has been resolved from the proletarian point of view: "take away and divide," emphasizes Alexander Sosnov.

He believes that in the matter of changing the state's policy regarding unemployment and material support for the unemployed, it is necessary to pay attention to the experience of our neighbors in the West, who have long faced the problem of unemployment.

I would say that Russia and Ukraine are not an example to follow. There is Poland, Holland. We need to take an example from them, because they are more advanced countries in these matters, - says the expert.

Meanwhile, unemployment benefits in Belarus are much lower than in the eastern neighboring countries. In Ukraine, the allowance reaches about 600 hryvnias (about 200,000 Belarusian rubles). In Russia, at the end of 2008, a new amount of unemployment benefit was set - from 850 to 4900 rubles (22-132 dollars).

The average benefit in Lithuania is 689.79 litas (about 200 euros). In Poland and Latvia, the amount of the allowance is calculated on a scale - for each, depending on the length of service and the amount of previous salaries.

All countries have their own conditions, - Alexander Sosnov notes. - There are no unified recommendations regarding methods of payment of benefits. Each country takes into account and implements its capabilities.

Pay the unemployed - support the economy in a crisis

Alexander Sosnov emphasizes that, as it was supposed in 1991, it is now possible to return to the idea of ​​insurance in case of loss of a job.

In my opinion, the main task is not to share the benefits equally, but to create an employment program, in accordance with which to provide business incentives, create jobs by reducing taxes, by issuing soft loans, - suggests the expert "Tomorrow of your country ". - Officials themselves should not create places. This is what business should be doing. Another important task is to organize a system of retraining people. Some professions are leaving, technical progress is becoming obsolete, other professions are appearing. The result is a structural discrepancy between the unemployed and the needs of the labor market.

Meanwhile, the report "Social Consequences of the Economic Crisis in Belarus and Trends in Social Policy Changes" highlights the need to raise unemployment benefits to the subsistence level and move towards estimating unemployment according to ILO methodology based on labor force surveys. This, according to the authors of the report, will reduce the social costs of enterprise restructuring, which is an important condition for overcoming the current economic crisis. At the same time, economists propose to continue improving the conditions for doing business - this is required for the development of the private sector and the expansion of self-employment opportunities.