What is work experience and what are its types?

An employee’s work experience is the total duration of those periods during which he was engaged in any activity, which is added to the required insurance period and allows him to receive pension benefits in accordance with Russian legislation. The main definition of such a period of activity was and remains the work book.

The accumulated experience consists of qualitative and quantitative criteria, while the first indicates the duration of work in years, months, and days. A qualitative indicator reveals certain features of a citizen’s activities, for example, harmful or special working conditions.

You can calculate your length of service using a special work experience calculator.

Types of experience

The current legislation of the Russian Federation provides for the following types of seniority, which have their own accrual rules and meaning:

1. Total length of service, which represents the entire period of activity from the first place of work to the last.
2. Special length of service, consisting of those periods when a citizen worked in certain economic sectors or professions.
3. Continuous service is the activity of an employee without interruption of work at any enterprise or industry.
4. Insurance experience, consisting of time periods during which pension contributions were made for a citizen.
5. Preferential service is a period during which an employee worked full time in harmful, dangerous or special conditions specified in special resolutions of the Cabinet of Ministers of the Russian Federation.

NOTE! Since the appearance of a separate concept of insurance length of service, the actual time that a citizen was employed at work has lost its meaning. Much more important were the periods during which the employer made contributions for the employee to the Pension Fund, and the amount of these contributions.

What is work experience

Currently, the concept of work experience is interpreted very broadly and ambiguously. Moreover, the concepts of labor and insurance experience are very often confused.

It can be noted that there are different types of work experience. The most acceptable classification of types of work experience seems to be, according to which the following are distinguished:

• total work experience
  . Used to calculate and accrue pensions in cases where a citizen worked before January 1, 2002;
• seniority
  . This term is used when assigning certain types of pensions for state pension provision (in particular, when assigning old-age pensions to certain categories of citizens, as well as when assigning a state pension for long service);
• special work experience
  .
  This is the total duration of labor and other activities, separated from the total length of service either by content, or by working conditions, or by location. Special length of service, allocated according to the content of the work
  , is taken into account when assigning a pension for long service.
  Special length of service, allocated according to working conditions
  , as well as
  by location
  (for example, work in the Far North), gives the right to certain pension benefits, in particular, allows you to receive an insurance pension early. The widest list of benefits is provided for those who worked in underground work, in work with hazardous working conditions, in hot shops, and in certain areas.

In this article, length of service is considered only in the context of the appointment of an early old-age pension. That is, we consider only special work experience, allocated according to working conditions

, and
by area
.

Receiving the title "Veteran of Labor"

For many years, the title “Veteran of Labor” has been considered a way to effectively support workers. Persons with this status can count on increased social guarantees as gratitude for years of long work.

Honorary workers in the regions have the right to a number of benefits that make life easier and improve their financial situation. But today it is not easy to obtain such a title, even with many years of activity, since in order to recognize all the merits, documentary evidence of several conditions is necessary. They are established at the legislative level and are the reason for obtaining the title.

Firstly, a citizen applying for the title must continuously work in any industry for at least 15 years, since constant activity at any enterprise without layoffs is necessary.

Secondly, a total accumulated work experience of at least 25 years is required for men, and also 5 years less for women, including the specified 15 years.

Thirdly, a citizen must have distinctive insignia presented by the department in the form of medals, orders, titles, diplomas, as well as letters of gratitude presented by the Ministries or the President.

In total, to be awarded the “Veteran of Labor” certificate, the employee must simultaneously have sufficient experience and distinctive signs. It is known that certificates and prepared letters of gratitude are awarded to almost everyone, but the title is awarded only if there are departmental insignia.

Calculation of supplement to labor pension

A pension is a social guarantee to provide for citizens. Upon reaching retirement, each citizen who officially worked on Russian territory has the right to appropriate payments.

The amount of your pension is affected by your length of service. For example, more than 40 years of work guarantee an increase in funds. Persons with 50 years of experience are entitled to an additional payment of funds to their accrued pension in the form of an amount of 1,063 rubles for 2020.

The funded pension includes a fixed amount of money, which is set by the pension fund, plus the sum of all earned and accounted for points, multiplied by the cost of one point. The latter must be accrued to citizens in strict accordance with the amount of contributions that are received annually from them into the pension fund account when carrying out activities.

Also, additional points are awarded to citizens for long working experience. In 2020, 1 point reached 78.58 rubles. It is expected to increase in the future in line with the inflation rate.

Points are awarded as follows:

1. Women with 30 years of work experience, as well as men with 35 years of work experience, must receive an additional 1 coefficient.
2. Women with 40 years of experience and men with 45 years of experience are entitled to an additional payment of 5 coefficients.

The main factors influencing the amount of additional payments due for length of service are:

• industry of activity;
• region of residence and activity;
• availability of paid bonuses.

Conditions of retirement

Over the past few years, the conditions for obtaining pensioner status have changed somewhat. The criteria are regularly adjusted by the state at different levels. Federal authorities make decisions affecting the entire population of the country. Subjects provide special additional payments and allowances. That is, districts can introduce aspects that improve the lives of retirees.

In some regions of Russia, it is permissible to purchase experience. This is required for citizens who want to receive full insurance benefits, but due to a number of circumstances have not worked officially for most of their lives. Sometimes you can delay retirement to give yourself enough years to save.

Upon early exit

Despite any innovations, the basic criteria for non-urgent retirement in old age remain years of life and length of service. In relation to the second, the dynamics of increase are expected to increase from year to year. As for restrictions on years of life, a bill was passed in 2018 according to which the bar will be raised over the coming years.

The federal law provides a list of citizens entitled to early payment. In particular, the following may go on vacation early, subject to certain reasons and length of service:

• citizens who have worked for ten years or more in hot shops, underground or in other dangerous places;
• women who were involved in the textile industry and also worked as typists of various types of transport;
• people who have participated for over six years in expeditions aimed at geological and topographical exploration;
• other categories of citizens whose activities were difficult, dangerous or harmful to health.

Also, issuing a preferential payment two years earlier is permissible under the following conditions:

1. Dismissal is due to company liquidation or lockout.
2. The citizen is listed in the employment center.
3. There are no vacancies for which employment is available in the place of residence.

It is important to know! Special conditions are provided for the indigenous peoples of the north. They have the right to retire upon reaching the minimum age.

Social reasons

Early retirement from work, although not encouraged, is allowed by the state. Firstly, this is due to the fact that people who were employed in harmful and dangerous industries exhaust the body’s resources earlier and acquire diseases.

Secondly, not all employers are ready to hire people of pre-retirement age. From the point of view of economic benefits, young specialists are more attractive. They have a wide range of skills, accept low salaries and do not have many benefits and privileges provided for by the Labor Code of the Russian Federation.

Thirdly, there are categories of citizens who, due to past life circumstances, are unable to effectively continue their activities. These include:

• women who raised five or more children;
• disability of all groups;
• elderly people with chronic diseases.

The difficult economic situation often forces the above groups to triple their work even after age sixty. However, they have the right to earlier rest due to age.

Calculation of work experience for individual entrepreneurs

An individual entrepreneur provides himself with the necessary work experience by paying the required insurance premiums. This length of service is the most important factor in determining the required pension.

An individual entrepreneur is recognized as an insured person when he makes all required payments for himself into the accounts of the pension fund. A pension is formed from a portion of such funds; for this reason, the periods of activity for which contributions are calculated and paid must be included in the length of service.

Keep in mind! The list of necessary documents to confirm the development of IP is present in Government Decree No. 555.

In accordance with the newly developed rules, the total length of service and the accrual of the required benefits for individual entrepreneurs are calculated in the same way as for employees. As a result of the reform, the required pension became an insurance one, as well as a funded one, the latter being formed from insurance payments and the profit received from their investment. Such a pension will be received by citizens at the age of 49 who have submitted an application for the transfer of a certain part of the insurance premiums paid to various non-state pension funds. Accrual is carried out according to previously existing rules.

The process of forming insurance-type pension accruals has changed significantly, so its size is influenced by the following factors:

• the amount of income of the individual entrepreneur for the annual period;
• seniority;
• the age of the citizen when applying to the Pension Fund for quick registration of the required benefit;
• type of required pension provision;
• the presence of time periods not included in the insurance period.

The formation of a businessman’s due pension is carried out from fixed amounts of payments, as well as the value of the accrued points. This cost is multiplied by an individual calculated coefficient, taking into account periods not included in the calculated insurance period.

Today, individual entrepreneurs, together with their hired employees, can receive a higher pension, whereas the previously performed calculation based on the minimum wage and without taking into account the insurance experience of the individual entrepreneur did not provide such an opportunity.

Interruption of service after the dismissal procedure

All conditions for how long the work experience will be retained after the dismissal procedure depend on the reasons for leaving work. The following situations stand out:

1. Termination of an employment contract without sufficiently serious reasons at the request of one of the cooperating parties, but the employee will have to find a new job within a month after leaving work. Otherwise, his tenure will be interrupted.
2. When working in difficult conditions in the north or abroad, a quit employee is given no more than two months for re-employment.
3. If a citizen working outside the Russian Federation quits his job, he is given two months to get a new official job in Russia or in a country with which the Russian Federation has a social security agreement. Otherwise, the service will be considered interrupted.

Thus, after dismissal, the employee has no more than two months to find a job, and this time is included in the length of service. But further time will no longer be included in the working period.

Such situations relate to the actual termination of relations with the immediate employer precisely at one’s own expressed desire. In this case, after dismissal, the employee must find a job no later than one month to maintain his seniority. Even if he cannot get a job for a long time, the first month will be included in the period of service. Upon completion, the work experience will be interrupted.

Dismissal initiated by the employer indicates that the employee has committed a sufficiently serious offense, which becomes grounds for termination of the contract. Therefore, there is no reason to provide the required amount of time to find a new job while maintaining seniority. After all, the employee seriously violated labor discipline and demonstrated his inability to perform duties at his previous workplace. In this case, the accumulated experience will necessarily be interrupted immediately after dismissal and resumed after placement in a new job found.

What if the dismissal was not due to the employee’s fault, but also not on his initiative? For example, has there been a reduction in staff or numbers, or is the employee forced to leave for health reasons? In this case, the law maintains uninterrupted work experience for 3 months - during this time you should find a new job.

There is one category of workers for whom their service is not interrupted after dismissal: these are the spouses of those who were transferred to a new place of work in another city (region). It is logical that the husband or wife of the transferred person may not be able to find a job quickly, so their work experience is not considered interrupted until new employment.

Does continuity of service affect retirement?

Continuous work experience was very important in Soviet times. Today (since 2002) it has already lost its fundamental importance when calculating pensions. Priority is given not to continuous work, but to contributions to the Pension Fund, that is, insurance periods of service.

Why is the concept of continuity of service needed today? It is used in determining preferential periods of work with the preservation of the profession - in special conditions, in a specific area. For example, for work of a certain duration in the climatic conditions of the Far North, preferential pension supplements are provided. Also, employees of medical institutions who have worked in them continuously for a certain period receive some bonus.

So, the main function of continuous service is pension bonuses and preferential payments. Such length of service does not affect the size of the pension itself.

Guardianship and work experience

If a family is raising a child from an orphanage, then the time of guardianship taken over him under a formalized agreement concluded by the guardianship authorities with the foster family is subject to inclusion in the insurance period. It is required to assign pension accruals.

In the event that the closest elderly infirm relative is cared for, in strict accordance with clause 2, part 1 of the current “Rules for calculating and confirming the existing insurance pension experience”, it will include the time of care of an able-bodied adult for:

• a person with disability group I;
• a child with a disability;
• for an elderly person over 80 years of age.

If the ward has not reached 80 years of age, but requires full guardianship, the corresponding period is not included in the length of service.

Classification of work experience and its significance in the field of social security

Not a single legal act provides a classification of types of length of service and the concept of each of them in a systematized form, but many of them identify and regulate various types of work experience, including:

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• insurance - in the field of pensions and the social insurance system, regulated by laws 400-FZ and 255-FZ, respectively.
• general labor - this concept applies only to activities that the employee carried out before 2002, and is regulated to a limited extent by law 173-FZ.
• special work experience in certain types of work or positions.

The latter type of length of service is regulated by many documents - from the Labor Code and federal laws regulating social security issues for workers in a particular field and various employees, to legal acts of various departments.

The above main types of work experience can be divided differently according to various criteria, but this issue is of greater theoretical significance. Almost every type of length of service has an impact on various areas of social and pension security.

Thus, the receipt of specific social benefits is influenced by the length of service in the social insurance system. For example, in accordance with Part 1 of Art. 7 of Law 255-FZ, in the event of temporary disability, the amount of payment will depend on the period of such experience (from 60% for less than 5 years of experience to 100% for 8 years).

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Work experience of a mother of many children

Currently, mothers of many children, like other Russian citizens, require work experience to receive the required labor pension, even despite the absence of attendance at work due to raising their children.

Women with many children include women who have given birth and are raising three or more children. But today, only the time spent on maternity leave raising only two children can be counted in their insurance period. Allotted leave for the birth of a third child cannot be included in the length of service. Only the time spent caring for a small child until he reaches the age of one and a half years should be included in the pension insurance period.

Therefore, at the birth of a third child, such a mother with many children is entitled to only three years of total experience, despite the fact that the actual time spent with children is 4.5 years.

In this current situation, a woman who is raising three or more children will lose a future pension, because in accordance with the current formula for calculating its size, the length of service taken into account is assigned a rather important role.

What is included in the insurance period for a pension?

This length of service includes the time of employment of a specialist (or other activity), subject to the employer accruing and paying into the budget insurance premiums for compulsory health insurance. Additionally, you can take into account other periods of insurance coverage for a pension (in accordance with the list in Article 12 of the Law):

• Military service or equivalent military service.
• Periods for which a citizen receives hospital benefits for disability.
• Periods for individuals to receive unemployment benefits.
• Caring for young children under 1.5 years of age - a maximum of 6 years per parent is allowed.
• Caring for a person with a group I disability, a disabled child or an elderly person over 80 years old.
• Days of participation of an individual in public works of a paid nature, as well as periods of travel (relocation) to work in the direction of the employment center (employment center).
• Days of release from employment due to the institution of a criminal case or being in custody, provided that the accusation was unfounded.
• Periods of residence at the place of service (no more than 5 years) for spouses of contract soldiers together with military personnel in the absence of employment opportunities.
• Periods of residence abroad (no more than 5 years) for spouses of employees of government agencies (diplomatic services, consulates, permanent representatives and trade representatives of the Russian Federation in foreign countries, representative offices of Russian authorities abroad, etc.).
• Time of operational-search activities (according to No. 144-FZ of August 12, 1995).
• Time for the judge to exercise judicial powers (according to No. 3132-1 of June 26, 1992).

The designated periods can be counted toward the insurance period if the person worked immediately before or immediately after them. The duration of employment does not matter (clause 2 of Article 12 of the Law).

Read: Pension indexation table from 2020

Is it possible to find out information about work experience using SNILS?

SNILS is the pension account number of a person who is insured in the compulsory pension insurance system. Such an account contains all the information about the accumulated work experience, as well as important information about transfers made by the direct employer.

Today you can find out your own length of service using SNILS in different ways. For example, it is impossible to find such data in the public domain online due to the fact that such information is confidential and accessible only to Pension Fund employees. A citizen can obtain information after ordering a special detailed extract.

Third parties do not have access to such important information, because the Pension Fund of the Russian Federation can issue certificates only upon presentation of a document with the help of which the identity of the owner of the presented pension certificate is determined

Ways to find out the insurance period in SNILS

1. According to your passport at the Pension Fund office.
2. By last name through the public services portal and a special section of pension savings.
3. Upon special request submitted.
4. According to TIN and application.

The simplest method of checking SNILS is to register an individual on the government services portal. First, an individual is registered by entering his passport data, email, and mobile phone number.

After completing the registration process, you go to your personal account, where you enter your SNILS number. If the information is invalid, the number provided will also be invalid.

Work experience: new items for 2020

Those who are planning to retire this year will receive it according to new rules, which have changed significantly compared to the past. The government has adopted a number of innovations that fundamentally affect the size and features of calculating old-age pensions.

Social pension for everyone?

Every citizen of the Russian Federation has the right to a social pension upon reaching a certain age - 60 years for women and 65 years for men. As you can see, the age for assigning this pension is 5 years older than for the insurance one. In addition, a possible increase in the retirement age has not yet been taken into account.

The size of the social pension is very small. If the total income of a social pensioner is less than the subsistence level, the federal budget allocates a supplement to the pension, along with which, from January 2018, the payment amounts to 7,990 rubles.

Most people who can count exclusively on a social pension are those who did not work or worked unofficially, receiving a salary or part of it “in an envelope” (without making contributions to the Pension Fund).

Insurance pension – why is it better?

It is much more profitable to receive an insurance pension. It does not represent the same amount for all pensioners, but depends on several values. The size of the insurance pension is tied to the following factors:

• fixed “base” – 4983 rubles, intended for those who have the required pension experience and the corresponding minimum pension points;
• the number of points is multiplied by a coefficient, which in 2018 is 81.5 rubles per 1 point (50 accumulated points will give an amount of 4075 rubles;
• the funded component of the pension – for pensioners born after 1967, whose savings are placed in Vnesheconombank or a non-state pension fund. The amount in the account is divided by 246 months, and the federal coefficient is added to it.

Conditions for receiving an insurance pension

Not everyone is entitled to an insurance pension; it must be earned in the literal sense of the word. You need to work at an official job, because only this way guarantees contributions to the Pension Fund, or make these contributions yourself. The law requires simultaneous compliance with 3 conditions:

• reaching the age limit of 55 years for women and 60 years for men (it has not yet been increased, although the corresponding bill is already being considered, it may come into force in 2020);
• insurance experience of a certain duration (requirements for it are increasing annually, starting from 2020, and in 2020 9 years of such experience are required);
• accumulation of pension points - special indicators accrued for the amount of contributions to the Pension Fund (1 monthly minimum wage paid to an employee during the year corresponds to 1 point accrued at the end of the working year); for 2020 you need to have at least 13.8 points.

The missing points and length of service can be gained by working some more time after reaching the pension threshold. Further work of those who have crossed the pension threshold brings them 1.5 times more points if they work after this time without a pension for another 5 years.

What else can you get points for?

Points are awarded not only for official work, but also for some specially designated periods, namely:

• conscription will bring 1.8 points per year;
• caring for a disabled person of group 1, an elderly relative over 80 years old, or a disabled child also brings 1.8 points per year;
• caring for the firstborn for 1.5 years will provide one of the parents with 1.8 points, for the 2nd child - 3.6 points, for the 3rd and subsequent ones - 5.4 points each.

Any citizen can view the number of accumulated points and years of insurance experience in their Personal Account on the official website of the Pension Fund of the Russian Federation.

We hope that the theory presented in the article will help you better navigate the basic principles of Russian legislation regarding seniority. Thanks to this information, you will be able to better operate your civil rights, claiming all the well-deserved social benefits.

Work experience for retirement

The pension reform introduced significant changes to the procedure for assigning old-age benefits. Until 2013, it was enough for a person to reach a certain number of years of life and accumulate work experience to retire. Today, in addition to this, people’s income has also begun to play a role. This fact put employees who received their wages unofficially at risk.

Legislative regulation

The main regulatory act that reveals the procedure and conditions for assigning a pension in modern Russia is Federal Law 400. It was adopted in 2013, but is constantly being adjusted and supplemented; the last edition was less than six months ago. The document consists of seven chapters and the same number of appendices. Let's consider articles directly related to what length of service is taken into account when calculating the retirement pension:

• 4 – persons entitled to receive insurance payment;
• 8 – conditions and criteria for granting a pension;
• 11 – periods of work taken into account in the length of service;
• 12 – life periods added to the length of service, but not related to work activities;
• 13 – procedure for calculating length of service for an insurance pension;
• 14 – sequence of actions when confirming experience.

Chapter 6 is devoted to the right of citizens to early retirement. A detailed list of people entitled to this is presented in articles 30-32 of the law. Next, we will consider how length of service affects the size of the pension.

Length of service

Length of service refers to the elapsed period of time within which a person was dedicated to his activity. For most professions, it occurs upon reaching retirement age:

• 55 years old – women;
• 60 years old - men.

It is important to know! From 2020, the bar increases annually for six months, until the indicators increase for five years. The length of service required to calculate an insurance pension is also growing.

For a number of specialties and localities, earlier length of service is provided. A detailed list is presented in federal legislation. As for the minimum length of service for calculating a pension, in the current period you need to work for at least ten years, but by 2014 the figure will rise to fifteen.

Periods included in the length of service

The work experience sums up all stages of work when contributions were made to the Pension Fund for a citizen, since it is from them that future benefits are formed. In addition to direct work (not necessarily continuous), the length of service includes:

• military duty upon conscription;
• maternity leave;
• living on unemployment benefits;
• unjustified detention and others.

If a serviceman’s spouse was unable to find work in the area where her husband was transferred, then the entire search period will be counted as length of service. Clarifying what length of service is needed for a labor pension, we note that this is not only direct work, but also a number of other paid activities.

Point system

Since 2013, age and length of service alone have become insufficient for retirement in old age. Another indicator has been added - the individual pension coefficient. It is directly related to two parameters:

• number of years of official employment;
• average income.

The calculation of the IPC is done annually using a formula that takes into account the citizen’s earnings for the period. In 2020, with a salary of 30,000 rubles, a person is awarded about three points. This calculation is not accurate; it is worth using special calculators, since a range of indicators is taken into account.

Please note that those who plan to go on vacation within the current year are required to have a total of ten years of experience and more than sixteen points, in addition to the age limit. This is the answer to how accumulated work experience affects retirement.