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Overview
Russian Ruble (RUB)
CURRENCY
Moscow
CAPITAL
monthly
PAYROLL FRECUENCY
15
PUBLIC HOLIDAYS
30.02 to 38.50
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Russia
Employer
Company Payroll Contributions
22% - 22%
State Pension Fund *up to annual salaries of 1,565,000 RUB (Maximum rate) 10% for amounts exceeding the maximum
2.9% - 29%
Social Insurance Fund *up to a maximum pay of 1,032,000 RUB annually (Maximum rate), with the surplus not liable to contributions RUB each year (Maximum rate)
5.10% - 5.10%
Medical Insurance Fund
0.2% - 8.5%
Accident Insurance (depending on the degree of the risk in the worker occupation)
30.2% - 64.6%
Total Employment Cost
Employee
According to employment in Russia laws, Russian workers do not provide any payroll contributions.
- 0%
Total Employee Cost
Employee Income Tax in Russia
13%
Annual earnings of up to five million rubles
15%
Annual earnings that exceed five million rubles
Payroll Contributions in Russia
Payroll Cycle
Workers in Russia must receive their pay at least every half month on a specific day in accordance to the work regulations, a collective agreement, or an employment agreement; this according to Russian law. Companies must now pay salaries no later than 15 days following the conclusion of the payment month. If business managers do not want the hassle of providing payments themselves, they can hire an Employer of Record in Russia and let them overtake the process.
13th Salary
In Russia, there is no legal necessity for 13th-month wage payments.
Employee Benefit in Russia
The labor law does not establish more common benefits for the citizens of Russia.
Visa and work permit in Russia
To work and live in Russia, an employee needs both a visa and a Russian work permit.
There are two different types of visas:
- Single-entry: This permit is valid for 90 days. Relying on a work permit invitation, which workers receive once they obtain a work permit, the Russian Embassy will provide it.
- Multiple-entry: Depending on how long the working visa is valid; the local branch of the Russian Migration authorities will reissue the multiple-entry visa.
Additionally, workers must possess a Russian work authorization. Individuals coming from a non-Commonwealth of Independent States (CIS) country may apply for a standard work permit for the duration of the job contract. A provisional residency permit must first be obtained. The work visa for highly skilled professionals, which is handled more quickly, is available to qualified professionals making over 1 million RUB annually. This three-year authorization enables family members to apply for Russian visas.
All workers in the Russian Federation must schedule an appointment with a doctor due to the nation's additional limitations on those traveling with HIV/AIDS.
VAT in Russia
In Russia, the common VAT rate is 20.00%.
Working Hours in Russia
General
In Russia, the usual working week is 40 hours, 8 hours each day. With Employer of Record Russia services, companies can create contracts that abide by this law.
Overtime
Overtime pay is required if work time surpasses the usual number of working hours. Overtime hours are limited to four hours in two consecutive days and 120 hours annually.
Overtime labor hours and pay are carefully governed by employment contracts/collective bargaining agreements. They are typically paid 150.00% of the standard hourly compensation rate for the first 2 overtime hours, increasing to 200.00% after that. If a company needs to hire an overtime worker, they can use the services of a PEO or an EOR. Employer of Record companies can easily help businesses to draft a contract that includes these requirements.
Working Week
Monday to Friday.
Employee Termination in Russia
Termination Process
Depending on the type of agreement and the grounds for termination, the termination procedure differs depending on the contract of employment and union contract in effect.
Notice Period
In Russia, notice periods are typically set at 14 days and 3 days if the worker is still on probation or the fixed-term contract is about to expire.
Severance Pay
Only when an employer cancels an employment relationship with no prior notice is severance compensation relevant. In this situation, the employee would get the same amount in severance compensation if they had been informed.
A severance payout equal to their monthly average wage is due to employees who are let go as a result of liquidation or redundancy. Additionally, although for no more than two months following the termination date, the employer must continue to pay the terminated worker their average monthly wage while they look for work.
Probation Period
Generally, the collective agreements specify the probation or trial periods; however, in Russia, the customary duration is three months, with an additional six months for executives, senior managers, etc.
Employee Leaves in Russia
Paid Time Offs
Employees are eligible to 28 days of paid leaves in Russia every year.
Some employees have lengthier, minimum holiday pay rights; for example, children under the age of 18 are eligible to 31 days of leave, while teachers are entitled to 42 or 56 days. Additionally, employees who work in the Far North and comparable regions, in dangerous and hazardous situations, or with irregular working time are eligible to supplementary paid holiday during the year.
Public Holidays
There are 15 national holidays throughout the year.
Vacation Holidays
There are 28 vacation holidays throughout the year.
Sick Days
Employees have the right to take sick time if they are ill or injured.
In the event of illness, the employee has the right to a sick leave allowance provided by the company for the first 3 days of sickness and then by the Russian Federation's Social Insurance Fund (from insurance payments from the employer) from the fourth day onwards.
Sick leave compensation varies according to length of service, although it cannot surpass 2,301 RUB per day. It can also be awarded to an employee caring for a sick kid or sick relative. To make sure that this particular leave stays in order, you can hire an Employer of Record in Russia.
Paternity Leave
Parental leave covers paternity leave.
Paternal Leave
Until the child is 18 months old, the relative or caregiver who looks after the child may ask for parental leave at any time. The Russian Federation's Social Insurance Fund is responsible for paying the allowance.
After the birth of a child, workers are eligible to up to 5 days of unpaid leave.
The same protections given to women are extended to workers raising children without the mother.
Other Leave
Once approved by both the employer and the employee, employees may be permitted additional leave types according to the contract or collective agreement for the following reasons:
- Workers are eligible to five days of leave for a family member's death during bereavement.
- Employees who are participating of a higher education program are eligible to 40 days of leave in the first 2 years of study and 50 days of paid leave for the following study period. The employer is responsible for covering this benefit.
- Workers have the right to up to 14 days of leave without pay per year if they are parents or spouses of military people, who have been killed or gravely injured while serving in the military, or who have contracted a sickness linked to military service.
Maternity Leave in Russia
Starting on 1 February 2021, the reimbursement for early registration with a health care facility in the first 12 weeks of gestation is 708.23 RUB. Maternity stipend is a one-time payment to an employee while she is on maternity leave. In 2021, the overall sum of maternity benefit earned for 140 days cannot exceed 340,795 RUB.
Maternal leave allowance is determined using wages from the 2 years preceding the maternity leave year. Earnings for the previous two years are split by the amount of calendar days in the preceding two years, minus omitted periods such as temporary infirmity. The amount of days of maternity leave multiplied by the daily average wages yields the total maternal leave allowance that must be paid.
Employees are also eligible for statutory birthing allowances, which are a one-time compensation of 18,886.32 RUB beginning on February 1, 2021.
Childcare leave can last up to 3 years after childbirth.
In 2021, the childcare stipend for up to 1.5 years of leave may not surpass 29,600.48 RUB. Starting in 2021, all social payments will be paid directly to employees by the social fund.
Hiring an Employer of Record in Russia will help companies deal with the hassle of maternity leave.
There are 140 leave throughout the year.