The coronavirus outbreak will reduce revenues of Russia’s Pension Fund, as well as Compulsory Health Insurance Fund and Social Insurance Fund, a study by experts at the Institute for Social Policy of the National Research University – Higher School of Economics revealed.
According to economists, the three funds provide 70% of all social payments. Their revenue capacity will be negatively affected by the ruble slump, the drop in oil prices, and the coronavirus outbreak. In particular, the shift to part-time work will inevitably decrease the salary fund, the number of jobs, and the demand.
The amount of funds’ losses will depend on the further development of the economic situation, economists say.
Due to the reduced salary fund and job cuts, the funds are expected to lose 5% of their monthly revenues of about RUR 65 bln ($825.2 mio), RBC business daily reported. In case the crisis will last the next three months, the social funds will lose some RUR 200 bln.
Experts forecast job and salary cuts of 10%, while a more negative scenario may result in a 15% reduction.