Overview

Capital
Moscow
Currency
Russian Ruble (RUB)
Date Format
dd/mm/yyyy

Taxes

Employer

Employer Payroll Tax

22% up to wages of RUB 1,292,000 /year (maximum rate). 10% for any amount over it.
State Pension Fund
2.9% up to wages of RUB 912,000/year (maximum rate)
Social Insurance Fund
5.10%
Medical Insurance Fund
0.02% minimum rate
Accident Insurance
30.02% Total Employment Cost
Employee

Employee Income Tax

13.00%
FLAT RATE (Residents)
30.00%
FLAT RATE (Non-Residents)
13% Total Employee Cost
Employer Taxes
3 HIGHEST
3 LOWEST
China
Brazil
Belarus
Russia
South Africa
Georgia
Macedonia
41.12%
36.8%
34%
30.02%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Russia
Georgia
Belarus
Ukraine
45%
28%
27.65%
13%
2%
1%
0%

Minimum Wage

General

Minimum wage is 12,130 RUB to 21,060 RUB, but can be higher in certain regions.

Minimum wage (per month)
$4000
$2663
$2491
$165
$36.80
$22
$2.33
Geneva
Luxembourg
Australia
Russia
Angola
Uzbekistan
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

The payroll cycle is bi-monthly.

13th Salary

There are no statutory laws on 13th salary in Russia.

Working Hours

General

Full-time employment is considered 8 hours per day and 40 hours a week.

Overtime

Hours worked over 40 hours per week are considered as overtime and are paid at a higher rate. Overtime should not exceed 4 hours in 2 successive days and 120 hours per year.  

Overtime is paid at a rate 150% of the regular pay rate for the first two hours and at 200% for all subsequent hours workedwithin a day.   

When an irregular working regime is stipulated in the contract, overtime is compensated by additional paid leave and cannot be less than 3 calendar days per year.   

Work during weekends and on public holidays is paid at a minimum of 200% of the regular pay rate. However, the employee can agree to be compensated by receiving regular pay plus an additional day off. 

Leave

Paid Time Off

28 calendar days per year, all unused days are carried over.    

Employees may be entitled to additional paid leave if they work in harmful and dangerous working conditions, have irregular working hours, work in the far North regions and in some other cases stipulated by the law. 

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Georgia
Russia
Malaysia
China
Federal
30
13
43
30
12
42
24
17
41
28
7
35
8
6
14
5
7
12
10
10
Public Holidays

There are 7 public holidays.

Sick Days

Sick leave allowance is paid by the employer for the first 3 days of sickness and by the Social Insurance Fund from the 4th day onwards.   

Sick leave allowance varies depending on the overall length of service, but it does not exceed 2,301 RUB per day. 

Maternity Leave

Maternity leave is paid for 140 calendar days and additional paid childcare leave till the child reaches the age of 18 months. The allowance is covered by the Social Security Fund. 

PAID MATERNITY LEAVE (DAYS)
410
365
365
140
45
30
0
Bulgaria
Serbia
Albania
Russia
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

Paternity leave falls under parental leave.

Parental Leave

The relative or guardian who takes care of the child can take paid parental leave till the child reaches the age of 18 months. The allowance is covered by the Social Security Fund.  

Only one parent can take the childcare leave. 

Other Leave

Study leave: Employees gaining higher education are entitled to 40 days paid leave during the first two years of study and 50 days paid leave during consequent years of study. The allowance is paid by the Employer.

Termination

Termination Process

Labor contracts can be terminated on the following grounds:

  • Mutual agreement of the parties
  • Expiry of the fixed term contract
  • At employee’s initiative;
  • At employer’s initiative – reasons are limited by legislation (e.g. staff reduction, if employee fails to fulfill hisher working duties or absent without good explanation, the company’s owners change (applicable only for director, chief accountants and deputies etc).

All termination settlements are to be finalized during the employee’s last working day.

Notice Period
  • 3 days’ written notice is mandatory when terminating due to probation period failure.  
  • 3 days’ written notice is mandatory when terminating due to the expiry of the fixed term contract 
  • Indefinite employment agreement- 2 week’s written notice is required when the employee initiates the termination of the employment agreement 
  • Termination due to redundancy or liquidation- 2 months’ written notice is required  
Severance Pay

When terminating due to staff redundancy or a company’s liquidation, severance pay is one month’s salary plus payment of their average month’s earnings for a 2-month period post dismissal when the employee is searching for alternative work.  

If the employee fails to find an alternative job after two months, they can obtain a letter from the Employment Fund which entitles them to receive an additional month’s salary.   

When termination is a result of the employee’s refusal to transfer to a different available position within the company or due to the loss of the ability to work (additional reasons might also apply), two weeks’ salary is paid.   

Probation Period

The probation period is 3 months. It can be extended to 6 months for directors, chief accountants, and their deputies.

VAT

General

20% standard rate.

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