The issue of determining the size of the military monetary allowance in 2020 is on the agenda, despite the October increase in salaries for military posts and ranks by 4.3%. It was held for the first time in the past 22 months, and it actually did not affect the level of purchasing power of the military. Therefore, in the coming year, security officials quite rightly expect that the state will continue to take care of increasing payments.
Government Plans
In the draft federal budget of the Russian Federation for 2020, officials laid down an increase in the monetary allowance of the military by 3.8% from October 1 of the coming year. It is this indicator that was laid down as a forecast indicator for the results of 2019. It will also be used to index public sector salaries, the amount of maternity capital, and various benefits. The document also tentatively planned indexation of DD for 2021 by 4%. Not only can the increase be called very modest, it will have to wait almost 11 months for its implementation.
As a result of the suspension, at the initiative of the Ministry of Finance, art. 2 part 9 of the law "On the monetary allowance of employees" in the period 2013-2017, providing for the annual indexation of payments by inflation, the material situation of the military has only worsened. There is evidence of a decrease in real income of security officials by 46%, and purchasing power by 60%. Given the almost double increase in minimum wages after 2015, the salaries of the military are actually equal to the salaries of state employees. But the lack of competitiveness of military salaries is to some extent blocked by the wide range of benefits provided.
In such a situation, the need for any form and size of increase in DD is more than relevant, especially since Vladimir Putin set the Government the task of raising the standard of living of employees of the Armed Forces of the Russian Federation and persons equated to them to the average wages typical of specialists in leading sectors of the economy.
But we are talking only about the preliminary plans of parliamentarians, which can be changed with the help of additional amendments during the next three readings of the budget bill in the State Duma. Moreover, the conclusions of the relevant State Duma Committee on Defense, headed by the former Commander-in-Chief of the Airborne Forces, General Vladimir Shamanov, can significantly affect the results of discussions.
Defense Committee Proposals
In the Conclusion of the Defense Committee, a proposal was made to index the military monetary allowance as early as January 1, 2020, that is, from the beginning of the financial period, despite the fact that in the government version of the draft budget this process was traditionally planned for early next October. The committee insists that if payments are increased only by October, they will not actually cover the estimated inflation rate, since growth will be only 0.75% in 2020.
Thus, the salary of the military may increase from the beginning of next year. But since monetary allowance is only a small part of the payments, the siloviki cannot count on a significant improvement in their welfare.
The Conclusion also refers to the constant ignoring of the Committee’s requests to take additional measures to improve the quality of life of the military. It is also about conducting additional indexations on military pensions.According to estimates, the under-indexation reaches 20%, that is, a fifth of the amount of payments, as a result of which the amounts are almost equal to the payments for labor (insurance) pension provision. In addition, the document talks about the allocation of additional funds for the provision of housing subsidies and salaries for civilian personnel of the Russian armed forces. Thus, it will be possible to avoid the growth of housing queues and eliminate social injustice in the form of almost the same level of remuneration for employees with low and high qualifications.
Given all the circumstances, the committee in the person of Shamanov hopes that all the proposed changes will be taken into account in the process of finalizing the draft state budget. It will be possible to judge the almost final decision of parliamentarians with respect to the amount of cash allowance in 2020 only by the results of the second reading of the project on the approval of the state budget for 2020.
Vladimir Shamanov
Changes in military pensions
Indexing DD will also affect the size of military pensions in 2020, since it is the basis for calculating pension payments, but adjusted for a decreasing coefficient. The latter by the end of 2019 is 73.68%. It does not apply only when calculating payments for veterans of World War II, so they will receive benefits in the amount of full cash allowance, which as a result will be approved by officials.
For the remaining categories of military pensioners, payout growth is possible due to two factors:
- The direct indexation of monetary allowance for the planned inflation rate, i.e. 3.8%.
- The increase in the coefficient up to 75.16%.
The total increase in military pension payments in 2020 will amount to 5.8%. As in the case of active servicemen, the exact indexation date (from January 1 or October 1, 2020) will be determined based on the results of the consideration of the state budget bill.
Read also:
- Benefits to Veterans of Labor in 2020
- Benefits in 2020: table
- Doctrine of Food Security in Russia until 2020
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