State regulation of self-employment institution in Russia: economic and legal aspect

Abstract

Changing models of labor relations result in impact on both the effectiveness of labor protection and workers' access to social dialogue and even basic social security. The more social security is separated from employment, the greater the need for public provision of social protection, financed among other mechanisms through tax systems. It ensures accountability of all participants. The emergence of legal regulation of self-employment institution in the country generated certain social, economic and legal consequences. The purpose of the article is to identify such consequences, to determine the trends in the development of the institute of self-employment, to analyze the current trends in the context of the subjects of the country on the basis of statistical data. The research methodology is based on the use of comparison methods, construction of dynamic series, structural analysis, and industry comparison. As a result of the study, it was revealed that the statistics of the last three years showed a steady increase in the number of self-employed citizens and individual entrepreneurs who obtained this status. The increase in the number of self-employed citizens throughout the country, despite economic difficulties, indicates the effectiveness of the measures introduced by the state to support this institution. From the point of view of employment and ensuring employment of the population, the self-employed are independent in choosing the type and form of activity without involvement of third parties, as well as investments from government agencies, and they do not belong to the category of unemployed claiming benefits. The social component of this type of institution is also important for society, since such category of citizens provides not only themselves and their family members. However, despite the state support of the self-employed, certain issues were sufficiently worked out, for example, questions concerning interaction with other market participants. There may be a problem of labor outflow because of employment relationships during special regime at the request of the employer, which pursue the goal of non-payment of insurance contributions. There is high probability of reduction of extra-budgetary funds due to non-obligation to pay insurance premiums to self-employed population. In 2022-2023, among other things the state actively subsidizes the institution of self-employed, allocating up to 350,000 rubles as a start-up capital to support those who want to obtain the status. If all conditions are met, the allocated amount will not have to be refunded. This initiative is implemented through social contract. According to the Ministry of Labor and Social Protection of the Russian Federation, 24.5 thousand social contracts for the development of their own business were concluded for the 1^st quarter of 2022.