Eurasian Economic Union Unifies Workers Pensions

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The Eurasian Economic Union – Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia have taken an important integration step to protect its worker base. Russia in particular sees about 5 million expatriate workers from the EAEU take jobs in the country, where wages are higher and the population to service larger. Typically these range from manual labor to taxi driving, restaurants, supermarkets and even seasonal agricultural work.

Its main goal is the formation, preservation and implementation of workers’ pension rights on the same conditions as citizens of the state of employment.

The agreement defines the procedure and mechanism for exporting pensions from one country of the Union to another, provides for the summation of the length of service in the EAEU states to determine the right to a pension. In addition, the issue of medical examination of a worker has been resolved, including an absentee medical examination when assigning a disability pension, and transitional provisions have been fixed that determine the procedure for assigning and paying pensions for periods of work before and after the entry into force of the Agreement.

This means that expatriate laborers who have worked and paid taxes in another EAEU member state will now be eligible for a regular pension from that country’s government, immaterial of whether they subsequently relocate back to their home country. With the amount of labor migration that happens across the EAEU, most notably in the direction of Russia, this will be a major boon to people who have labored for years in a country far from home.

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Russia Briefing is written by Dezan Shira & Associates. The firm has 28 offices throughout Eurasia, including China, Russia, India, and the ASEAN nations, assisting foreign investors into the Eurasian region. Please contact Maria Kotova at for Russian investment advisory or assistance with market intelligence, legal, tax and compliance issues throughout Asia.

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