Russian State Pension Fund to Use Blockchain in Work Contracts

Russia to use Blockchain Technology in Employment Contracts

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Russia is still making massive developments in the Blockchain technology. The latest institutions to join the sector is the Russian State Pension Fund which has suggested the implementation of Blockchain in labor relations. According to reports from Russia the Fund wants the implementation of smart contracts to be used as contracts of employment between employers and employees.

Officials from the fund said that they prefer Blockchain technology because it can be used to reduce the costs of storing huge amounts of data as well as eliminate unnecessary paper work. They also believe that Blockchain can be used to protect employees from arrogant and negligent employers who like violating the law when it comes to employee contracts.

Statistics tabled by Izvestiya in 2017 showed that more than 460,000 Russian claimed that their employment rights were violated. That year saw the government impose fines of not less than 20 billion rubles for rights violation.

Russia is working very hard to ensure that it reorganized and develops its labor sector. Dimitri Medvedez Russia’s prime minister said that all employment records should be stored online starting from 2020. More to that he also indicated that all required data will have to be shared using the PFR.

In the developments officials had discussed about raising the minimum retirement age for men from the current 60 years to 65 years. More to that that of women would also be moved from the current 55 years to 63 years by 2034.

In July there were demonstrations in all the major cities in Russia since people were against proposed reforms. President Putin had to announce that the government was planning to amend the pension reforms.
Blockchain is viewed as the technology that can solve problems in all sectors including governance. This is because the technology ensures transparency, it’s secure and fast. In the case of data storage data store in Blockchain technology cannot be accessed by unauthorized persons making it good for confidential information.

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