No mass layoffs at large state enterprises ahead of presidential campaign
As expected, the decline in the competitiveness of Belarusian products on the Russian market and the deteriorating economic situation in Russia are interfering with the work of Belarusian enterprises which are mainly oriented towards Russian market. However, ahead of the 2015 presidential campaign the Belarusian authorities will not allow mass layoffs at the large state-owned enterprises and will not change the social economic policy. The authorities will seek to ensure social and political stability by expanding part-time employment and by reducing wages - but not below the acceptable level.
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.