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Belarus Welfare
Belarus's social safety net, largely a continuation of
what
existed in the former Soviet Union, is based on a
guarantee of
employment and a number of allowances and benefits for
particular
needs. Benefits were indexed to inflation in January 1991
(benefits are adjusted at the same rate as the minimum
wage), and
the system was expanded in 1991-92, partly to alleviate
the
social costs of switching to a market economy. The safety
net had
been a growing concern to the government because in the
early
1990s it accounted for a large share of general government
expenditures. Benefits were funded either directly by the
budget
or by two major social funds.
The government's greatest social expenditures are for
pensions. The relatively low retirement age (fifty-five
for women
and sixty for men) and the country's demographic structure
account for the large number of pensioners. In January
1992, the
minimum pension was raised to 350 rubles (for the value of
the
Belarusian ruble--see Glossary)
per month, the same as the
minimum wage. The Pension Law of January 1993 based
pensions on
income earned at the time of retirement and on length of
employment; the pensions of those who did not contribute
to the
Pension Fund during their years of employment are linked
to the
minimum wage. In January 1994, Belarus had nearly 2
million oldage pensioners and 600,000 persons receiving other types
of
pensions.
Legislation passed in late 1992 permits families to
receive
allowances for children above age three only if they meet
certain
eligibility requirements based on income. Previously,
families
with children up to sixteen years of age (eighteen years
of age
for those in secondary schools) had automatically received
allowances based on the minimum wage. The program has been
hampered by problems in testing for eligibility, however,
because
of difficulties in assessing income and because of tax
evasion by
the self-employed.
Unemployment compensation is provided for six months.
Benefits are related to earnings for those who work for
more than
a year and also work continuously for the twelve weeks
before
separation. For those who work less than a year, benefits
are
tied to the minimum wage. Because the eligibility criteria
for
unemployment benefits are quite stringent, half of the
registered
unemployed are without benefits. In February 1995, some 52
percent of the unemployed received unemployment
compensation. In
early 1995, women accounted for more than 62 percent of
the
unemployed.
The government provides a number of other benefits,
including
lump-sum grants upon the birth of each child; temporary
disability allowances; trips to sanatoria, spas, health
homes,
vacation resorts, and other facilities; and benefits for
victims
of the Chornobyl' disaster.
Data as of June 1995
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