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Russia to Test New Child Benefit Calculation Method in 2026

Parents could see bigger benefits. The government will test a new method that factors in savings and investments.

,   and  Administrator
1 min read
At the bottom of this image, there is a child sitting. Beside this child, there is a glass window....
At the bottom of this image, there is a child sitting. Beside this child, there is a glass window. On the right side, there is a pillar. Through these glass windows, we can see there is a train on a railway track. Beside this railway track, there is another railway track, there are plants, buildings, electric lines, poles and sky.

Russia to Test New Child Benefit Calculation Method in 2026

The Russian government is set to launch an experiment in 2026 that could significantly alter child benefit calculations. The Ministry of Finance has proposed considering bank accounts and deposits alongside family income.

The experiment will involve the Pension Fund and Social Insurance Fund gathering information about accounts and operations from the Federal Tax Service (FNS) and banks. The regions for this experiment will be chosen by the government.

Parents stand to benefit from this change. Each can claim a 'turbotax' deduction of up to 500,000 rubles per year for additional contributions to children's funds. This deduction is available for each tax period as long as the child is under 18, or 24 if they are studying full-time. The size of the deduction varies, ranging from 13% to 22% depending on the NDF rate applied to the participant's income.

Long-term savings products eligible for this deduction include long-term savings programs, non-state pension provision, voluntary life insurance, and individual investment accounts.

The bill, which aims to provide 'turbo tax' deductions for parents contributing to children's funds, was approved in its first reading in June 2025. The tax deduction limit for investments has been proposed to increase from 400,000 to 500,000 rubles per tax period. However, the specific regions and start date for the experiment remain unconfirmed.

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