Donetsk, Jan 5 — DAN. The Donetsk People’s Republic plans to join the benefit allocation mechanism under Russia’s “Direct payments” pilot project, DPR deputy government chairperson Larisa Tolstykina told the Donetsk News Agency.
“The Russian Federation is implementing the ‘Direct Payments’ welfare project and the Donetsk People’s Republic is preparing to switch to this benefit payment method, ” Tolstykina said. “The advantage of the system is that citizens get timely and full payments.”
The system guarantees that the size of the benefit meets the norms set by the law and that payments won’t be delayed due the employer’s shortage of funds, she added.
“Direct Payments” is a pilot project of the Russian Social Insurance Fund (SIF) which merged with the Pension Fund into the Social Fund of Russia on January 1, 2023. Under the project, insurers pay full fees into compulsory social insurance. The fee cannot be reduced by the sum earlier paid by the SIF.
The interaction procedure between the Fund, employer and employee is changed thus: a company receives an application and documents from an employee confirming the right to receive benefits and sends them to the Social Insurance Fund in electronic form. The Fund then directly pays the benefit to the insured employee. The calculation method and the size of benefit remain unchanged. The system improves control over benefit allocation and collection.*jk