Putin: All social payments this year will go up in line with actual inflation

MOSCOW. Jan 22 (Interfax) - All social payments in 2025 will go up in line with actual inflation, Russian President Vladimir Putin said, proposing to index insurance pensions by 9.5% from January 1 this year.

"Social payments and benefits will be indexed this year according to actual inflation, which last year exceeded the Central Bank's target and came to 9.5%," Putin said at a meeting on economic issues on Wednesday.

He said inflation was higher than the government's forecast. "Of course, we need to respond to this situation... The plan was to increase insurance pensions 7.3% from January this year, that is, by the forecast level of inflation, but, as I have already said, and as we all know, this, inflation, actually turned out to be higher. So I propose that in January, insurance pensions be indexed according to the real situation, according to actual inflation last year, that is, by 9.5%," Putin said.

He asked for pensions to be indexed effective from January 1. "I realize that the first month of the year is practically over, so I'm asking for this decision to take effect retroactively, so to speak, and for insurance pensions to be recalculated to reflect the 9.5% increase starting from January 1, 2025, and for the corresponding extra payment to be made in February," Putin said.

He also proposed a further indexation of pensions for military pensioners starting from January 1, 2025, taking into account last year's inflation.

"So-called military pensions have been indexed from October 1 last year: for length of service, disability and loss of breadwinner. The increase was 5.1%. I believe it is right and fair to also make an additional indexation for military pensioners given the actual price growth last year, also retroactively from January 1, 2025," Putin said.