Employer Payroll Contributions
Employee Payroll Contributions
Employee Income Tax
In Russia, the minimum monthly salary established at the federal level is 12,792 RUB but differs by region; for example, the minimum salary in Moscow is 20,589 RUB.
According to Russian legislation, salary shall be paid at least every half month on a day specified by the work regulations, by a collective agreement, or by an employment agreement. Companies are now required to pay salary no later than 15 calendar days after the last day of the payroll period.
There is no statutory requirement for 13th-month salary payments in Russia.
The standard working week in Russia can be no more than 40 hours, 8 hours per day.
Overtime compensation is compulsory if work time exceeds the standard number of work hours. The maximum number of overtime hours is 4 hours in two successive days and 120 hours per year.
Overtime work hours and payment are strictly regulated per the employment contracts/collective agreements. They are usually paid at 150.00% of the regular hourly salary rate for the first two hours of overtime, increasing to 200.00% of the regular hourly rate after that.
In Russia, employees are entitled to 28 calendar days of paid leave per year.
Some employees have longer, minimum paid holiday entitlements; for example, under 18 are entitled to 31 days of leave and teachers 42 or 56 days. Additionally, certain employees are entitled to additional paid holiday during a year, including working in the Far North and equivalent regions, working in hazardous and dangerous conditions, and working with irregular working hours.
There are 7 public holidays.
Employees are entitled to take sick leave in the event of illness or injury.
In case of sickness, the employee is entitled to a sick leave allowance paid by the employer for the first three days of sickness and subsequently by the Social Insurance Fund of the Russian Federation (from insurance payments made by the employer) from the 4th day onwards.
Sick leave allowance varies depending on the overall length of service, but it must not exceed 2,301 RUB per day and can also be granted to an employee taking care of a sick child or sick relative.
The allowance for early registration with a medical institution during the first 12 weeks of pregnancy is 708.23 RUB starting from 1 February 2021. Maternity allowance is a one-time payment that is provided to the employee who is on maternity leave. The total amount of maternity allowance accrued for 140 days may not exceed 340,795 RUB in 2021. Maternity leave allowance is calculated based on the earnings of the two calendar years preceding the year of the maternity leave. Earnings for two years are divided by the number of calendar days in the previous two years minus the excluded periods, such as temporary disability periods. The total maternity leave allowance to be paid is calculated by the average daily earnings multiplied by the number of calendar days of maternity leave.
The employees are also entitled to statutory childbirth allowances, a one-time payment of 18,886.32 RUB starting from 1 February 2021.
The duration of childcare leave may be up to three years from childbirth.
The childcare allowance for childcare leave of up to 1.5 years may not exceed 29,600.48 RUB in 2021. Starting from 2021, all social allowances are paid by the social fund directly to employees.
Paternity leave falls under parental leave.
The relative or guardian who takes care of the child can request paid parental leave at any time until the child reaches the age of 18 months. The payment of the allowance is covered by the Social Insurance Fund of the Russian Federation.
Employees are entitled to up to five days of unpaid leave following the birth of a child.
Employees raising a child without the child’s mother are granted the same benefits guaranteed to women.
Depending on the contract/collective agreement, employees may be allowed additional leave types, once approved between the employer and employee, for the following:
- Bereavement leave: employees are entitled to 5 days of paid leave for the death of a family member.
- Study leave: employees studying higher education are entitled to 40 days paid leave during the first two years of learning and 50 days paid leave for the remaining learning term; the employer pays this allowance.
- Military leave: Employees who are parents and spouses of military personnel, killed or seriously injured during military service or due to a disease associated with military service are entitled to up to 14 calendar days of unpaid leave during a year.
The termination process varies according to the employment agreement and collective agreement in place and is based on the type of contract and reason for termination.
Notice periods in Russia are generally set at 14 days and three days if the employee is still in the probation period/expiry of a fixed-term contract.
Severance pay is only applicable when an employer terminates an employment agreement without notice. In this case, the severance pay would be for the same amount the employee would earn if they had been given notice.
Employees terminated due to liquidation or redundancy are entitled to a severance payment equal to their average monthly wage. Additionally, the employer must pay the dismissed employee their average monthly salary when they are looking for a new job but for no longer than two months from the termination date.
Probation or Trial periods are generally set within the collective agreements; however, common practice in Russia is three months, extending to 6 months for directors, senior managers, etc.
Employees need both a Russian work permit and a visa to live and work in Russia.
There are two visa options available:
Single-entry: This visa is valid for 90 days. The Russian Consulate will issue it based on a work visa invitation, which employees get once they have a work permit.
Multiple-entry: The local office of the Russian Migration police reissues the multiple-entry visa based on how long the work permit is valid.
Employees also must have a Russian work permit. Anyone from non-Commonwealth of Independent States (CIS) countries can apply for the standard work permit, valid for the length of the employment contract. It requires securing a temporary residence permit first. Skilled professionals with a salary of over 1 million RUB can apply for the work permit for highly qualified professionals, which gets processed faster. This permit is valid for three years and allows family members to obtain Russian visas.
The Russian Federation requires all employees to make a doctor’s appointment, as the country has additional restrictions on people traveling with HIV/AIDS. A doctor must test all individuals for HIV/AIDS, tuberculosis, and leprosy.
The standard VAT rate in Russia is 20.00%.
See our guide to Russia during COVID-19