Currency
Russian ruble
Payroll Frequency
The payroll cycle occurs bi-monthly
Employer Taxes
13.00% Annual Income up to 5 Million Rubles 15.00% Annual Income exceeding 5 Million Rubles 30.00% FLAT RATE (Non-Residents).

About 

Russian Federation

Russia, the world's largest country, stretches over eastern Europe and northern Asia. Russia became an independent country in 1991, after the dissolution of the Soviet Union.

Overview

Population
146,171,015
Language
Russian
Capital
Moscow
Currency
Russian ruble
Country code
+7
Min wage
$172 per month
Working hours
40 hours per week
Weekdays
Mondays to Fridays
Work hours per week
40 hours per week

Payroll

Cycle
  • The payroll cycle occurs bi-monthly
Avg employer tax
  • 13.00% Annual Income up to 5 Million Rubles 15.00%
  • Annual Income exceeding 5 Million Rubles 30.00%
  • FLAT RATE (Non-Residents)

Taxation

Tax breakdown - Employer
  • 22.0% for wages up to RUB 1,465,000/year (maximum rate)
  • 10% for any amount above it
  • State Pension Fund 2.9% - Wages up to RUB 9666,000/year (maximum)
  • Social Insurance Fund 5.0%
  • Medical Insurance Fund 0.2%
  • Minimum Rate Accident Insurance 30.02%
  • Total Employment Price
VAT
  • Rate Type Which goods and services 20% Standard
  • All other tax-exempt goods and services 16.67% Reduced Foodstuffs, livestock; certain child's supplies; medicine and water; books 0% zero Exports and assoc.

Holidays / PTO

Public holidays
  • 1 - 10January: New Year Holidays
  • 7 January: Christmas, Russian Orthodox
  • 23 February: Defender of Motherland Day
  • 8 March: International Women’s Day
  • 1 May: Spring and Labor Day
  • 9 May: Victory Day (Over German Nazism in the WW2)
  • 12 June: Day of Russia
  • 4 November: Day of the National Unity
Sick days
  • The employer pays sick leave allowance for the first three days and the Social Insurance Fund for the fourth day.
  • The amount of sick leave allowance depends on the length of service.
  • However, it is not more than 2,301 Rub per day.
Maternity leave
  • Maternity leave can be taken for up to 140 days.
  • Additional paid childcare leave can be taken until the child turns 18 months.
  • The Social Security Fund covers the allowance.
Paternity leave
  • New fathers in Russia are not guaranteed any paid paternity leave.
  • However, the Russian government does provide paid parental leave that can be used by either the child's parents (mother or father).
  • This parental leave consists of 18 months of paid leave at 40% of the parent’s salary, up to a ceiling.

Termination

Termination Process

The following grounds can be used to terminate labor contracts:

  • Mutual agreement between the parties.
  • Expiry of the fixed-term contract at the employee's request.
  • At the employer's request - the reasons are limited by law (e.g. Staff reduction: If an employee fails to perform his/her work duties or is absent without good reason, the employer can terminate the contract.
  • All termination settlements must be completed during the employee's final working day.
Notice Period
  • When terminating because of probation period failure, 3 days written notice is required.
  • When terminating because of probation period failure, 3 days written notice must be given.
  • 2 weeks written notice is required if the employee requests termination of employment agreement.
  • Termination due redundancy or liquidation - 2 months written notice is required.
Severance Pay
  • If a company liquidates staff, the severance payment is one month's salary plus the average monthly earnings for a two-month period.
  • This is when the employee is looking for work.
  • The Employment Fund can issue a letter to the employee granting them a month's salary if they fail to find a job within two months.
  • Two weeks salary is paid if the termination occurs because the employee refuses to move to another position within the company, or because he/she is unable to work (additional reason might apply).
Probation Period
  • The probation period lasts 3 months.
  • Directors, chief accountants and their deputies can extend the probation period to six months.
People are talking

Hear what teams love about using RemotePass.

RemotePass has been so efficient for us as we have at least 60% of our team being remote. Especially for tracking if everyone has been paid out or if they have reimbursements, we don't have to manually do it one by one anymore. It's also really good since we are in compliance with each and every single one of our remote teams' place of residence.

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