Support measures for business and workers in Russia due to the coronavirus as announced in the President’s address
Today, the President of Russia addressed the nation due to the spread of the coronavirus.
He announced that the week from March 30 to April 5 would be off. Proposals to support the economy, business and citizens were also made. We have listed the proposals for support of business and workers.
These proposals still need to be developed and implemented by the relevant authorities.
Support to those on sick leave or jobless
- Sick pay of at least 1 minimum wage per month will be paid until the end of the year, and then a decision will be made based on the situation.
- Unemployment benefit is increased to reach the minimum wage, i.e. RUB 12,130.
Credit for individual entrepreneurs
The president has asked the government and the parliament to work out credit extensions for individual entrepreneurs if debt repayment becomes impossible for objective reasons.
Support of small and medium businesses as well as microenterprises
To support enterprises and prevent a surge in unemployment, the president has proposed the following:
- A deferment should be granted to small and medium businesses for all taxes except VAT for the next 6 months, while microenterprises should in addition benefit from a deferment of payment for social insurance contributions.
- Medium, small and micro businesses are exempted from bank loan payments for 6 months.
A moratorium of 6 months is introduced for submission of petitions for bankruptcy and collection of debts and fines. These measures apply to companies from the industries the most affected by the current situation. The government is to monitor the situation constantly and adjust the list of industries in need of support if necessary.
Reduced social insurance contributions for small and medium businesses
The social insurance contribution rate on the amount of salary exceeding the minimum wage is decreased from 30% to 15%. The rate remains the same at 30% for salaries equal or under the minimum wage.
This measure is not a short-term anti-crisis measure but is intended to stimulate an increase in employee salaries, so it will be in place for a long time.