The Social Contract is an agreement signed between a citizen and social protection unit that obliges the Russian Federation government to provide social assistance to the citizen, and recipient of this assistance has to fulfill certain steps presupposed by an agreed upon “social adaptation” program (work at individual household small land plot, professional education, job search, etc.).
The proposed approach (in frames of realization of the Social contract) aims to overcome poverty among persons with incomes below the subsistence minimum. Taking into account that the structure of low-income citizens is dominated by families with children (the assessment approach uses an assessment based on average per capita household income), receiving this support measure, large and low-income families with children receive special priority
In Russian practice, to receive social support measures, the average per capita income of citizens is calculated, which decreases when a child is born into the family or a new family member appears. These circumstances may lead to a decrease in the average per capita income of citizens to a value below the subsistence minimum, which allows such citizens to apply for social support measures. When implementing a social contract, the average per capita income of citizens is calculated before and after the conclusion of the contract. The Social contract is considered effective if, after its implementation, the citizen's income has increased and he has overcome poverty (income has become higher than the subsistence minimum). The Social contract allows you to receive state support in the amount of up to 350 thousand rubles or 3,650 US dollars.
According to the results of 2023, 718.5 thousand people were covered by the Social Contract (5.8% of the total number of low-income citizens, the number of low-income citizens by the end of 2023 is 12.4 million people).
According to the results of 2023, 34.9 billion rubles were spent on providing state social assistance on the basis of a Social Contract.34,9 billion rubles. For 2024, the planned amount of funding is 31.5 billion rubles.
Multi-sectoral.
Information about the implementation of the Social Contract is available on the official website of the Ministry of Labour and Social Protection of the Russian Federation. The best practices of the constituent entities of the Russian Federation in providing state social assistance on the basis of a Social Contract is a collection of the best mechanism implementation and successful examples of working with citizens in the framework of the social contract implementation.
In terms of monitoring, official statistical information on the number of concluded Social Contracts and performance indicators (the share of citizens whose incomes increased after the completion of the social contract, the share of citizens who came out of poverty) is publicly available on the official website of the Unified Interdepartmental Information and Statistical System (UIISS). UIISS contains official statistical information that is generated annually by the subjects of the Russian Federation for statistical accounting
In a 2-year period (2021–2022):
- Incomes increased on average for 66% of low-income citizens who participated in the job search component (from 16 to 100% in different regions), and for 28%, the average per capita family income exceeded the subsistence minimum (from 10 to 85%).
- The share of SC beneficiaries receiving an individual entrepreneurial activity plan, whose income increased as a result of its implementation, amounted to an average of 71% (from 17 to 100% in different regions), for 37%, the average per capita family income exceeded the regional subsistence minimum (from 11 to 76%).
- The share of SC beneficiaries in the maintaining a subsidiary farm component, whose income increased as a result of its implementation, amounted to an average of 67% (from 6 to 99% in the subjects of the Russian Federation). An increase in the average per capita family income, which allowed citizens to overcome the poverty threshold, was achieved by an average of 25% of SC participants (from 1 to 63%)
- To implement this instrument, it is necessary to establish an assessment of poverty level in the country based on relative monetary approaches, conduct an initial assessment of the size and structure of the low-income population (including determining the composition of the family), determine the potential number of recipients of support measures, work out these approaches based on the legislative framework, and plan the necessary amounts of funding.
- The implementation of this instrument will require a well-established system of interdepartmental interaction (ensuring communication between the authority that accepts documents from a citizen for receiving support, bodies that verify the accuracy of information provided by a citizen or supplement the necessary set of documents, bodies that provide financial support for social support measures). It is important to have an integrated approach to assessing the level of income of citizen applying for social support measures.
- To increase the effectiveness of the social contract, it is necessary to increase awareness regarding the possibility of including a social contract, increase a level of financial literacy of citizens, and create comfortable conditions for the support and development of small and medium-sized enterprises.
- It is also necessary to introduce an input and output assessment (income level) to assess the impact of such a support measure on the welfare of the recipient.
SDG 1 - No poverty
- Target 1.1 - By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day
- Indicator 1.1.1 - Proportion of the population living below the international poverty line by sex, age, employment status and geographical location (urban/rural)
- Target 1.2 - By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
- Indicator 1.2.1 - Proportion of population living below the national poverty line, by sex and age
SDG 4 - Quality education
- Target 4.3 - By 2030, ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university
- Indicator 4.3.1 - Participation rate of youth and adults in formal and non-formal education and training in the previous 12 months, by sex
- Target 4.4 - By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship
- Indicator 4.4.1 - Proportion of youth and adults with information and communications technology (ICT) skills, by type of skill
SDG 8 - Decent work and economic growth
- Target 8.3 - Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services
- Indicator 8.3.1 - Proportion of informal employment in total employment, by sector and sex
SDG 10 - Reduced inequalities
- Target 10.1 - By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average
- Indicator 10.1.1 - Growth rates of household expenditure or income per capita among the bottom 40 per cent of the population and the total population
- Target 10.2 - By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
- Indicator 10.2.1 - Proportion of people living below 50 per cent of median income, by sex, age and persons with disabilities
- Target 10.4 - Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality
- Indicator 10.4.1 - Labour share of GDP
- Indicator 10.4.2 - Redistributive impact of fiscal policy
SDG 1 – No poverty
- Target 1.1 – By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day
- Indicator 1.1.1 – Proportion of the population living below the international poverty line by sex, age, employment status and geographical location (urban/rural)
- Target 1.2 – By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
- Indicator 1.2.1 – Proportion of population living below the national poverty line, by sex and age
SDG 4 – Quality education
- Target 4.3 – By 2030, ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university
- Indicator 4.3.1 – Participation rate of youth and adults in formal and non-formal education and training in the previous 12 months, by sex
- Target 4.4 – By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship
- Indicator 4.4.1 – Proportion of youth and adults with information and communications technology (ICT) skills, by type of skill
SDG 8 – Decent work and economic growth
- Target 8.3 – Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services
- Indicator 8.3.1 – Proportion of informal employment in total employment, by sector and sex
SDG 10 – Reduced inequalities
- Target 10.1 – By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average
- Indicator 10.1.1 – Growth rates of household expenditure or income per capita among the bottom 40 per cent of the population and the total population
- Target 10.2 – By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
- Indicator 10.2.1 – Proportion of people living below 50 per cent of median income, by sex, age and persons with disabilities
- Target 10.4 – Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality
- Indicator 10.4.1 – Labour share of GDP
- Indicator 10.4.2 – Redistributive impact of fiscal policy
The Social Contract is an agreement signed between a citizen and social protection unit that obliges the Russian Federation government to provide social assistance to the citizen, and recipient of this assistance has to fulfill certain steps presupposed by an agreed upon “social adaptation” program (work at individual household small land plot, professional education, job search, etc.).
The proposed approach (in frames of realization of the Social contract) aims to overcome poverty among persons with incomes below the subsistence minimum. Taking into account that the structure of low-income citizens is dominated by families with children (the assessment approach uses an assessment based on average per capita household income), receiving this support measure, large and low-income families with children receive special priority
In Russian practice, to receive social support measures, the average per capita income of citizens is calculated, which decreases when a child is born into the family or a new family member appears. These circumstances may lead to a decrease in the average per capita income of citizens to a value below the subsistence minimum, which allows such citizens to apply for social support measures. When implementing a social contract, the average per capita income of citizens is calculated before and after the conclusion of the contract. The Social contract is considered effective if, after its implementation, the citizen’s income has increased and he has overcome poverty (income has become higher than the subsistence minimum). The Social contract allows you to receive state support in the amount of up to 350 thousand rubles or 3,650 US dollars.
- To implement this instrument, it is necessary to establish an assessment of poverty level in the country based on relative monetary approaches, conduct an initial assessment of the size and structure of the low-income population (including determining the composition of the family), determine the potential number of recipients of support measures, work out these approaches based on the legislative framework, and plan the necessary amounts of funding.
- The implementation of this instrument will require a well-established system of interdepartmental interaction (ensuring communication between the authority that accepts documents from a citizen for receiving support, bodies that verify the accuracy of information provided by a citizen or supplement the necessary set of documents, bodies that provide financial support for social support measures). It is important to have an integrated approach to assessing the level of income of citizen applying for social support measures.
- To increase the effectiveness of the social contract, it is necessary to increase awareness regarding the possibility of including a social contract, increase a level of financial literacy of citizens, and create comfortable conditions for the support and development of small and medium-sized enterprises.
- It is also necessary to introduce an input and output assessment (income level) to assess the impact of such a support measure on the welfare of the recipient.
Training (vocational, life skills, cash for training, entrepreneurship)
Multi-sectoral.
According to the results of 2023, 718.5 thousand people were covered by the Social Contract (5.8% of the total number of low-income citizens, the number of low-income citizens by the end of 2023 is 12.4 million people).
According to the results of 2023, 34.9 billion rubles were spent on providing state social assistance on the basis of a Social Contract.34,9 billion rubles. For 2024, the planned amount of funding is 31.5 billion rubles.
Information about the implementation of the Social Contract is available on the official website of the Ministry of Labour and Social Protection of the Russian Federation. The best practices of the constituent entities of the Russian Federation in providing state social assistance on the basis of a Social Contract is a collection of the best mechanism implementation and successful examples of working with citizens in the framework of the social contract implementation.
In terms of monitoring, official statistical information on the number of concluded Social Contracts and performance indicators (the share of citizens whose incomes increased after the completion of the social contract, the share of citizens who came out of poverty) is publicly available on the official website of the Unified Interdepartmental Information and Statistical System (UIISS). UIISS contains official statistical information that is generated annually by the subjects of the Russian Federation for statistical accounting