This text is an automatic translation from Русский. It was generated by AI and may contain inaccuracies.
Read original →Nearly 30,000 Russians have signed social contracts since the beginning of the year. We examine what this support measure is, how it works, and whether it can actually help increase income.
The social contract has become a key instrument in combating poverty in Russia: since the beginning of 2026, more than 28,400 contracts have been concluded. The program provides financial support to low-income families for starting a business, finding employment, or developing subsidiary farming. According to the Ministry of Labor, 77% of recipients were able to increase their income, and 46% emerged from poverty.
Since the beginning of 2026, more than 28,400 social contracts have been signed in Russia. Starting one's own business remains the most popular option. Despite the relatively small number of contracts in the first months of 2026, the program itself has already become one of the key instruments of state social policy. To understand its significance, it's important to examine how it emerged and what role it plays today.
A social contract is a form of state support for people with low incomes. It can be signed by an individual or family if their per capita income falls below the regional subsistence minimum. Essentially, it's an agreement with social protection authorities: the state provides money and assistance with, for example, finding work, starting a business, developing a personal subsidiary farm, or overcoming a difficult life situation, while the person fulfills an action plan designed to help increase their income.
In most cases, the money is paid either as a lump sum or monthly for a specified period. For instance, funds may go toward purchasing equipment for a small business, renting premises, or training. If the person meets the program's conditions, assistance continues. If not, the contract may be terminated.
The program's economic logic is straightforward: the state prefers to invest in a family's future income rather than pay ongoing benefits.
Social contracts began to be implemented in Russia as an experiment back in the 2010s, but the program started developing on a large scale after 2020, when it was incorporated into the federal poverty reduction strategy. In 2024, 204,700 social contracts were signed in Russia, covering approximately 552,000 people.
In 2025, the program continued to expand. In just the first nine months, more than 186,000 contracts were signed, covering over 520,000 citizens. Looking at the program's structure, it breaks down as follows:
Nearly half of program participants use it specifically as a launchpad for small business.
The reasons for this option's popularity are fairly obvious. First, the government allocates a relatively substantial sum to launch a project—in some regions it can reach 350,000 rubles.
Second, entrepreneurs receive more than just financial support. Social protection agencies often work with "My Business" support centers, which help draft business plans, identify sales markets, and provide legal assistance.
The most popular business sectors among program participants are: beauty industry, manufacturing, auto repair, construction, repair services, and photo and video production.
Assessing the effectiveness of social contracts is a key question for economists and social policy. According to Ministry of Labor data, 77% of recipients managed to increase their income, and about 46% escaped poverty.
Experts attribute these results to the program's targeted nature: funds go only to families who are genuinely in difficult circumstances and ready to take action to change their financial situation.
Moreover, many program participants are families with children. For example, in early 2025, families with children made up 66.3% of social contract recipients, including nearly 25% from large families.
Despite positive statistics, the social contract program has weaknesses that experts and auditors have noted.
First, the financial support amount doesn't always allow for a full-fledged business launch. The maximum social contract payment for starting one's own business is up to 350,000 rubles, and for training—up to 30,000 rubles. While sufficient for small projects, in major cities these amounts often don't cover expenses for renting premises, equipment, and purchasing materials, leaving some recipients facing a shortage of startup capital.
Second, not all program participants have entrepreneurial experience. According to the Accounts Chamber, only about a quarter of participants manage to achieve a sustainable exit from poverty after completing the program, which shows that far from every project becomes a long-term source of income.
Another problem is the program's heavy dependence on regional policy. Social contracts are funded from both federal and regional budgets, so conditions can vary significantly. Some regions offer more opportunities for launching businesses or agricultural ventures, while in others the program is more often used as short-term financial support.
In recent years, social contracts have gradually become one of the main instruments of targeted social support in Russia. Authorities view them as a mechanism that helps address several objectives simultaneously:
According to government estimates, around 700,000 people may use the program in 2026. If this momentum continues, social contracts could become one of the largest economic support programs for households in the country.