Overview

Capital Moscow

Currency Russian Ruble

Date Format dd.mm.yyyy

Taxes

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

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.

Mandatory Benefits

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

Minimum Wage

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

Working Hours

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.

VAT

General 18% standard rate.

Payment

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.