Do the self-employed have work experience?

What is seniority and what does it affect

Sometimes work experience refers to the years in which a person worked at a particular job. But if we consider the issue more seriously, this is not a very accurate definition.

Seniority is the periods that are counted by the Pension Fund when calculating a pension. That is, it is not enough just to do something and get paid for it. It is necessary that at this time special deductions for a person come to the FIU. If there are no such payments, the period will not be included in the length of service.

Seniority affects pension. To receive an old-age insurance pension, a person must work a certain number of years for which contributions will be paid. In 2022, the minimum work experience for the purpose of this payment is 13 years, but this figure will grow. Accordingly, the more working years and the amount of contributions for them, the higher the pension will be.

If the experience is not enough, then the person will be able to apply only for

social payment. It is much less than the insurance pension. In 2022, the social payment amounted to 10.2 thousand rubles, and insurance - 18 thousand. And the social pension is appointed five years later than the insurance one.

Do the self-employed have work experience?

By default, no. The self-employed have no obligation to transfer contributions to the Pension Fund. Accordingly, no payments - no experience.

However, this does not apply to those who work on employment contract and at the same time takes on projects as a self-employed person. In this case, the company - the main place of work - makes deductions. This is 22% of the salary. If a self-employed person simultaneously cooperates with someone under a civil law contract (GPC) as an individual, there are also payments. But here you need to carefully read the contract to make sure of the status. They also conclude with the self-employed GPC agreement, but there are no deductions for them.

At the same time, if a self-employed person wants to receive a pension in the future, he can buy himself a seniority.

How to form a work experience for the self-employed

The self-employed have no obligation to pay insurance premiums to the FIU, but have the right to do so voluntarily.

The FIU has a price list for this case. There are minimum rates for the purchase of 12 months of experience. They depend on the year: in 2022 it is 34 445 rubles. The amounts will grow. If you deposit less money, the seniority will be recalculated in proportion to the contribution.

Contributions are converted into an Individual Pension Coefficient (IPR), which affects the amount of your pension in the future. You can pay more to the FIU to increase the IPC. However, there is also an upper limit for contributions: in 2022 it is 275,560 rubles.

To pay annual contributions, you must transfer them by December 31st. It won't work after the fact.

Statement the desire to make voluntary contributions can be submitted at the nearest branch of the FIU or through Personal Area.

To do this, select the item “on voluntary entry into legal relations under the GPT”.

Fill out an application.

As the basis for registration, select the item that you are a payer professional income tax.

You will also need to indicate the date of registration as self-employed and the source of information about this. The date can be viewed in application "My tax", specify it as the source.

From 2023 the situation will change. Instead of the PFR and the Social Insurance Fund, the Pension and Social Insurance Fund will start working. You will need to pay fees there. But so far the department does not have a website.

Should a self-employed person buy pension experience?

There is no single answer here, because people are different and their plans for life also differ. And a lot also depends on optimism and faith that by the time you retire, the pension system will be in the same form as it exists now.

At the moment, the insurance pension is almost twice as much as the social one. But both are small. How they will change over the years is impossible to predict. If you invest money instead of contributions, then this amount will also obviously not be enough to provide yourself with a pension. So, if you invest 34.5 thousand - the amount of the contribution for 2022 - at 10% with capitalization, then in 10 years they will turn into a little more than 90 thousand rubles. Let's say if it's relatively safe to invest everything that you don't spend on contributions, in 10 years it can give about a million, which is not so much.

So weigh the pros and cons before making a decision. What you definitely shouldn’t do is not think about life in old age at all.