Belarusian authorities use decree on social parasitism to reduce workers' wage claims
The Belarusian authorities have amended the controversial decree on social parasitism. The population is becoming more discontent as the authorities increase financial pressure and add new population groups to the list of those liable to pay the tax - according to the latest reports, the tax authorities have sent a tax notice to circa 400 000 people, or 9% of the employed in the economy (4.4 million people in H 12016). By amending the "decree on social parasitism", the Belarusian authorities have actually admitted its shortcomings and have yielded to the pressure from the society. Nevertheless, the authorities are unable to ensure that everyone gets a job and use the decree to reduce state employers’ claims for a pay rise. Meanwhile, the opposition has a chance to increase its popular support due to the rise of discontent in society with lower incomes amid increasing taxes and tariffs for government services.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.