Until October 1, Russians must choose their form of federal benefits: in-kind or monetary.
Until October 1, 2025, approximately 15 million Russian citizens eligible for federal benefits must decide how they will receive social support: either as in-kind services or as a monetary equivalent. This clarification was recently issued by the Social Fund of Russia (SFR). Experts help to understand the essence of this upcoming choice and how many citizens it will affect.
According to 2024 data, Russia has over 15 million federal beneficiaries. They need to decide by the end of September whether to receive their entitled package of social services in-kind or as a cash payment. The in-kind option includes medications and medical supplies, sanatorium vouchers, free travel on suburban trains, and free intercity travel to and from treatment locations. If an individual does not plan to use these services, they can opt for a cash compensation. This year, the monthly cash compensation for a full refusal of all services is 1,728.46 rubles.
The government annually increases the monetary equivalent of benefits to account for inflation. As of this February, the cost breakdown of the service package is:
- Medications, medical supplies, and therapeutic nutrition for disabled children – 1,331.30 rubles per month.
- Sanatorium treatment vouchers for the prevention of major diseases – 205.95 rubles per month.
- Free travel on suburban railway transport and intercity transport to and from a sanatorium – 191.21 rubles per month.
The SFR clarified that a partial refusal of services is also possible. For example, one can retain the right to a sanatorium voucher and travel to it, but receive cash compensation for medications. Receiving services in different forms is designed to allow each beneficiary to determine the most suitable option for themselves.
The selection process is quite simple. To make a choice, an application must be submitted to the Social Fund by October 1 via the «Gosuslugi» portal, a client service center, or an MFC (Multifunctional Center). The chosen option will take effect from the beginning of the next year and will remain valid until a new application is submitted. If an application has already been filed, a new one is not required, and the benefits will continue to be paid in cash until the individual changes their decision.
The SFR emphasizes that all federal benefit recipients, including disabled individuals, veterans, and other categories of citizens entitled to social support, must make this decision. According to «Delovaya Rossiya» (Business Russia) data from last year, out of 15.2 million Russians entitled to benefits, 35% choose in-kind assistance, while 65% opt for cash compensation.
Economist Andrey Loboda, a top manager in financial communications, points out that the government`s indexation of social services in February provides beneficiaries with the opportunity to receive additional support amounting to over 1,700 rubles monthly. He believes that such funds will certainly not be superfluous for elderly and socially vulnerable categories of citizens, and that this additional state support will strengthen the social well-being of those in need.
«First and foremost, people need medications and quality medical services. It is quite probable that the majority of beneficiaries will choose the monetary form of government assistance,» says Loboda. «What is important in this story is not even the monthly amount of additional help, but the strengthened signal from the state, expanding the implementation of social programs for the population.»
Regarding the dilemma facing Russian beneficiaries, Mark Goykhman, an expert from ForexBY, recalls a line from Yuri Levitansky`s poetry: «Everyone chooses for themselves.» Goykhman believes this phrase often applies to the decision between cash and in-kind social services. «If a person actually spends more than 1,730 rubles a month on medications or sanatorium treatment, then the in-kind form of benefits is obviously more advantageous for them.»
At the same time, Goykhman asserts that significantly more beneficiaries in Russia prefer cash over in-kind services, and there is logic in this preference. «However, choosing `for yourself` must consider that this choice cannot be changed during the upcoming year,» the analyst emphasizes. «Therefore, one should assess the likelihood of any illness exacerbating or a new one emerging, which might lead to much more significant expenses for prescribed medications.» Based on this, many might find it sensible to prefer an intermediate option. For example, receiving cash compensation for some services—like a sanatorium and travel—if such a trip is not planned, but opting for the in-kind benefit for prescribed medications and medical supplies.
In any case, Goykhman concludes, the choice should align with another poetic line—from Andrey Dementyev: «Never regret anything in retrospect.»
