Payroll and Benefits Guide - Russia

Russia
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Currency

Russian Ruble
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Capital

Moscow
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Employer Taxes

30.02% – 53.60%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

The Trans-Siberian Railway, which runs over 9,000 kilometers from Moscow to Vladivostok, is the longest railroad in the world.

Oymyakon, the world’s coldest inhabited location, lies in Russia with a record set for the lowest temperature of 67.7 C°.

Russian nesting dolls, usually referred to as Matryoshka dolls, are well-known worldwide, and are viewed as Russian symbols.

More than any other country in the world, Russia has nine time zones.

Saint Petersburg’s the Hermitage is one of the biggest museums with more than 3 million artifacts.

More than 40 national parks and 100 animal reserves are in Russia.

Contributions

Employee Payroll Tax

Contribution Type Rate
Total Employment Cost 0.00%

Employer Payroll Tax

Contribution Type Rate
Combined pension, medical insurance, and social insurance for salary below RUB 1,917,000 30.00%
Combined additional pension and medical insurance 15.10%
Accident Insurance 0.20% – 8.50%

Payroll

Payroll Cycle

In Russia, the pay is required to be given every month and/or within 15 days of the last paycheck.

13th Salary

There are no laws requiring 13th month salary.

Work Hours and Week

The average workweek consists of 40 hours, or 8 hours per day from Mondays to Fridays.

Overtime

The maximum amount of overtime is 4 hours over the course of two consecutive days and 120 hours annually.

According to employment contracts and collective agreements, overtime labor requirements and compensation are rigorously regulated. For the first two hours of overtime, they are typically paid 150.00% of the regular hourly wage rate; for the next two hours, they are paid 200.00% of the regular hourly rate.

Leave

Paid Time Off

Teachers, people under the age of 18, people who work in the Far North and comparable locations, people who work in hazardous or dangerous conditions, and people whose contracts call for irregular hours of work may all be entitled to additional annual leave days. However, a total of 28 calendar days (20 working days) of paid time off are given to every regular employee each year. The minimum length of a leave term is 14 days, with the remaining days of leave being taken as either single days or combined days.

Vacation pay is the employee’s average salary accrued over the preceding 12 calendar months and should be paid at least three days before their leave starts.

For an additional year, all unused vacation days are carried over.

Public Holidays

There are 15 public holidays in Russia.

Sick Days

Employees have the right to use as much sick time as needed if they become unwell or hurt.

Those who fall ill are entitled to a sick leave allowance, which is initially paid by the employer for the first three days of their illness and then, starting on the fourth day, by the Social Insurance Fund of the Russian Federation.

This allowance may not exceed RUB 2,301daily.

Maternity Leave

Pregnant employees may take up to 140 calendar days of paid leave.

The amount of the maternity leave allowance is determined using the earnings from the two calendar years before to the year of the absence. Divide the earnings for two years by the number of calendar days in the two years prior, less the excluded times, to determine the daily rate for the maternity allowance.

Paternity Leave

A father is given to five days unpaid paternity leave after the child’s birth.

Single fathers also have the same right to maternity leave.

Parental Leave

Until the child is 18 months old, the relative or guardian who looks after the child may ask for paid parental leave at any time. The Russian Federation’s Social Insurance Fund is responsible for paying the allowance.

Other Leave

In the case of a death in an employee’s family, they are given five days of paid leave.

Employees who are enrolled in higher education are given such paid leave:

for the first two years, 40 days yearly for the remaining years, 50 days yearly

Employees are entitled to up to 14 calendar days of unpaid leave per year if they are parents or spouses of military people, were killed or seriously injured while serving in the military, or had a disease connected to military service.

Termination

Termination Process

One of the most strictly regulated aspects of Russian employment law is the termination of employment contracts, which has a precise set of formalities (notices, deadlines, and severances) for the various dismissal grounds, of which there are six groups:

separation contract termination of a fixed-term employment contract’s duration resignation (termination at the employee’s request) termination at the employer’s discretion (for a reason relating to redundancies and transfers) forced termination resulting from events outside the parties’ control illegal employment agreements (such as hiring someone who is barred from practicing their trade)

Except for the CEO of a Russian organization, “at-will” termination of employment ties is typically not permitted. In any case, the dismissal procedure must be carried out in strict compliance with all legal and procedural requirements applicable to that specific ground for dismissal whenever an employer intends to terminate an employment contract, even on the grounds that an employee has given a resignation notice.

Notice Period

In Russia, there is no need for notice periods. Only if termination results from liquidation, redundancy, a failed probationary period, or the expiration of a fixed-term contract, does it apply.

Severance Pay

While the amount of severance pay varies depending on the work type, pay, and service length it is often paid at the following rates:

From one to to five years, it is 30.00% of the monthly salary for every year. From six to to ten years, it is 35.00% of the monthly salary for every year. From more than ten years, it is 40.00% of the monthly salary for every year of service.

Probation Period

Probation Period

The probationary period usually are 3 months long but could be as long as 6 months for supervisory positions.

Immigration

To live and work in Russia, an employee needs both a visa and a Russian work permit. A temporary residence permit must first be obtained. The work permit for highly qualified 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. All patients must undergo tests for leprosy, TB, and HIV/AIDS.

VAT

The usual VAT rate is 20.00% in Russia.