Russia
Before hiring
Before hiring employees in Russia, there are a few important things you’ll need to know. Firstly, in Russia, employees are entitled to 140 days' fully paid maternity leave, and 170 days in cases of multiple pregnancies. Russian employees are also entitled to additional paid childcare leave until the child reaches the age of 18 months.
It’s also important for employers to know that in Russia, all employees pay a flat rate income tax of 13%.
We know this might sound overwhelming—but it doesn’t have to be. A solution like Oyster eliminates the barriers for you. With Oyster, you can automate compliance across 180+ countries, easily managing HR and payroll—all in one, easy-to-use platform.
Get an overview of what you need to know when hiring in Russia below.
At a Glance
CURRENCY
RUB
OFFICIAL LANGUAGE
RUSSIAN
PAYROLL FREQUENCY
BI-MONTHLY
EMPLOYER TAXES
~30%
13th / 14th SALARY
N/A
Good to know
- Collective agreements and trade unions are very active in Russia. Collective agreements offer protection against staff redundancy and trade unions protect and negotiate the rights of employees with the management of the company.
- If, after termination, an employee fails to find an alternative job within two months, they can obtain a letter from the Employment Fund which entitles them to receive an additional month’s salary from their previous employer.
- Bonuses are common in Russia, and there are various sector-specific guidelines on them.
Employment in
Russia
Employees in Russia work eight hours per day, 40 hours per week.
Any time worked over 40 hours per week is considered overtime and is paid at a rate of 150% of the employee’s regular pay for the first two hours, and a rate of 200% for all subsequent hours worked within a day.
In Russia, work during weekends and on public holidays is paid at a minimum of 200% of the employee’s regular pay rate. However, employees can agree to be compensated by receiving regular pay plus an additional day off.
Overtime work should not exceed four hours in two successive days and 120 hours per year.
In Russia, the probationary period is three months. This can be extended to six months for senior positions.
Notice periods in Russia vary by nature of the termination. The types of notice periods for different agreements is as follows:
- During probation period: Three days’ notice
- Expiry of the fixed-term contract: Three days’ notice
- Resignation from indefinite employment agreement: Two weeks' notice
- Termination due to redundancy or liquidation: Two months’ notice
No notice is required for cases of termination for cause.
Non-compete agreements are not covered under Russian law and their enforceability is questionable.
Employment cost calculator
Paid time off
Employees are entitled to 28 paid vacation per year. Some employers might offer more days.
Employers are required to pay out the vacation allowance at least three days before the vacation is due to start.
Sick leave allowance entitlement depends on an employee’s length of service and is capped at 2,301 RUB per day.
This payment is covered by the Social Insurance Fund from insurance payments made by the employer, and its amount depends on the length of service. It can vary from 60% to 100% of the employee's average salary over the previous two years.
Employees are entitled to 140 days' fully paid maternity leave (170 days in cases of multiple pregnancies), as well as additional paid childcare leave until the child reaches the age of 18 months. The allowance is covered by the Social Security Fund. A maximum amount is determined every year.
Pregnant employees can also make a request to work part-time.
Employees are also entitled to partly paid parental leave until the child reaches the age of 18 months. This is also paid by the Social Security Fund and the allowance is equivalent to 40% of the employee’s average salary over the previous two years. A maximum amount is determined every year.
Employer tax
An employer’s social contributions in Russia are about 30%. This includes:
- State Pension Fund: 22% up to wages of RUB 1,292,000 per year, and 10% for any amount over it
- Social Insurance Fund: 2.9% up to wages of RUB 912,000 per year
- Medical Insurance Fund: 5.1%
- Accident Insurance: At least 0.02%
Individual tax
In Russia, employees pay a flat rate income tax of 13%.
Employees with wages up to RUB 912,000 per annum are also required to pay 2.9% in social security contributions. Earnings above this cap are not subject to contributions.
Termination of employment
Severance pay in Russia depends on the grounds for the termination. In case of staff redundancy or company liquidation, it is equal to one month’s salary, plus the employee’s average monthly salary for a two-month period after dismissal while 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 from the employer.
In case of termination due to an employee’s refusal to transfer to a different position in the company or loss of the ability to work, severance pay is equal to two weeks’ salary.
Start hiring employees in
Russia
Setting up a business entity everywhere you want to hire a new employee isn’t scalable—it takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it’s hard to find reliable information on up-to-date employment information for all the countries where you’re considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast.
We can’t afford to take risks when it comes to compliance—we need to make sure we follow the local guidelines, especially when it comes to taxes and legalities.
With Oyster, you can manage HR and payroll, and automate compliance across 180+ countries—all in one, easy-to-use platform.
