Russia Payroll and Benefits Benchmark guide

Capital Moscow

Currency Russian Ruble

Date Format dd.mm.yyyy

Employer 22% up to wages of RUB 1,021,000/year and 10% for any amount over it. - State Pension Fund
2.9% up to wages of RUB 815,000/year - Social Insurance Fund
5.10% - Medical Insurance Fund
2.00% - Accident Insurance

Employee 13.00% - FLAT RATE (Residents)
30.00% - FLAT RATE (Non-Residents)

Termination Process The Russian Labor Code is particularly employee-protective, dismissing of an employee is common only under the following grounds: - Disciplinary offences - Non-compliance with the professional duties - Personnel reduction - Company’s liquidation Considering the above, it is strongly recommend to stick to mutual agreement procedure in case a dismissal is initiated by the employer. This foresees that the parties negotiate the termination terms themselves and can set the notification period as agreed. This procedure usually includes some compensation to the employee of up to 3 monthly salari

Advance Notice During the probation period, employees must provide 3 days of notice. Following that period, employees must provide written notice 14 days in advance.

Severance Pay If an employee is terminated due to redundancy, they are entitled to severance pay one month of average wages. For all the other reasons, they are entitled to severance pay of two weeks average wages.

Pension Fund Employers contribute 22% of the employee wages not exceeding RUB 711,000 and additional 10% for any amount above it.

Social Security All social contributions together are calculated on an annual level, and are as follows: * O-815,000 RUB 30.2% * 815,000- 1,021,000 RUB: 27.3% * 1,021,000 - 3,734,680 RUB: 15.30% ** The limits are annual reviewed, these are updated for 2018

General Minimum wage is RUB 11,163 ($176.94) monthly, however may vary across regions.

Vacation days Employees are entitled to 28 days of vacation (21 work days) per year. Vacation days must be taken as follows - At least 14 days must be taken in a row, and the remaining 14 days may be taken at the employees discretion. During vacation periods employees do not receive their normal salary, they receive an average of their salary in the last 12 months (including bonuses) - this is also true for business trips.

Sick days In Russia, sick leave can be taken for illness, illness for a family member for whom care is needed, for pregnancy and for quarantine. The first 3 days of any sick leave period are paid for by the employer, and from the 4th day on payment is made by government social security, upon presenting medical notes from a doctor/hospital. The cost of each sick day is between 60-100% of the employee’s average earnings, depending on circumstances and seniority (for 2018, max amount is RUB 2,017.81 (33 USD) per day.

Maternity Leave Female employees are entitled to 70 calendar leave days (84 in the event of multiply pregnancy) *In the event of an abnormal birth mothers receive 86 days leave, and for the birth of two or more children 110 days. ** Social payments are provided in the amount specified by the law.

Paternity Leave No statutory entitlement.

Parental Leave Either parents can take parental leave from the time their child is born until their third birthday. This leave is provided by employee application submitted any time within the first three years of their child's life. The leave period is split into two: 0 – 1.5 years and 1.5 – 3 years. During the former a monthly allowance in amount of max. 23 120 RUR (actual figure is calculated in accordance with the average salary), while during the latter an employee is entitled to only 50 RUR per month.

General Full time employment is considered 40 hours weekly.

Overtime Overtime should not exceed for hours in two consdective days or 120 hours yearly. The first two hours are paid (atleast) 150%, and 200% for additional hours and work on weekends and non-work days. *Employees are allowed to demand additional days off for overtime.

General 18% standard rate.

General 1 Salaries are paid twice monthly, partial payment is made on the 20th, and the remainder is paid on the 5th of the following month.