Employer of Record (EOR) Belarus - Hire and Pay with a Global PEO | Employer of Record (EOR)

An Employer of Record (EOR) in Belarus is a company that takes on the responsibility of being the legal employer for a worker. This includes managing payroll, benefits, and other employment-related tasks on behalf of the worker's actual employer.

Discover the key considerations and essential details you should be aware of before opting for an Employer of Record (EOR) in Belarus.

Overview
Continent	Europe
Country	Belarus
Capital	Minsk
Time zone	UTC+03:00 (FET)
Total Time zones	1
Working hours per week	40
Working week	Monday–Friday
Typical hours worked	8
Financial Year	1 January - 31 December
Date format	dd/mm/yyyy
Currency	Belarusian Ruble (BYN)
VAT	the standard rate is 20%

Employment Contracts in Belarus

In Belarus, employment contracts play a pivotal role in establishing the rights and responsibilities of both employers and workers. Governed by the Labor Code of the Republic of Belarus, these contracts provide a framework for employment relationships, outlining crucial aspects such as duration, terms, and conditions. From prohibiting unjust refusals to stipulating document requirements and termination procedures, the articles within the Labor Code ensure fairness and transparency in the employment process. This section delves into the intricacies of employment contracts in Belarus, elucidating their formation, content, and legal implications to facilitate a comprehensive understanding for employers and workers alike.

Article 16: Employers are prohibited from unreasonably refusing to execute employment agreements with certain citizens, including those directed by authorities for specific roles, women with pregnancy or childcare responsibilities, and graduates among other categories. Refusals must be justified in writing and can be appealed in court.

Article 17: Employment contracts in Belarus can be either indefinite or fixed-term, with the latter not exceeding five years, known as a terminal employment contract. The conditions for terminal contracts include specific circumstances where indefinite employment is impractical, such as for temporary work or seasonal projects, outlined in the law.

Article 18: Employment contracts in Belarus must be in writing, signed by both parties, and duplicated. The contract's format is approved by the government or its authorized body.

Article 19: The content and conditions of employment contracts in Belarus are determined by mutual agreement, following legal requirements. Mandatory elements include worker and employer details, job location, duties aligned with professional standards, rights and obligations, contract duration (for terminal contracts), work hours, and compensation. Additional conditions may be added if they do not worsen the worker's situation compared to legal standards.

Article 20: Employers hiring remote workers in Belarus must adhere to the terms specified in the employment contract and cannot demand additional tasks not outlined in the agreement, unless permitted by law.

Article 21: Employment agreements in Belarus are permitted with individuals who have reached the age of sixteen. With parental consent, individuals as young as fourteen may enter into employment contracts under specific conditions outlined in the law.

Article 22: The validity of an employment contract can be nullified under various circumstances, including deception, coercion, or if it is entered into with a minor or an incapacitated individual.

Article 23: Certain clauses within an employment contract are deemed invalid if they worsen the worker's conditions compared to legal standards or exhibit discriminatory practices, though the contract as a whole remains valid.

Article 24: In certain cases provided by law, such as through a tender or selection process, employment duties can precede the formal signing of the employment contract to assess the worker's suitability for the role.

Article 25: The employment contract becomes effective on the agreed-upon start date, with the employer officially initiating the worker's duties, documented within one day of commencement, and confirmed by issuing an official order to the worker.

Article 26: When entering into an employment agreement, employers must request specific documents from workers, including identification, military documents (if applicable), education certificates, and health-related documents, as required by law. Failure to provide these documents prohibits employment, and employers may request references from previous employers within seven days of employment commencement.

Article 27: Spouses, close relatives, or cousins-in-law are prohibited from holding certain managerial positions within the same organization if their roles involve direct subordination or control over one another. This restriction may extend to other organizations as determined by the property owner or authorized body.

Article 28: Employment contracts may include a provision for preliminary testing to assess a worker's suitability for the job. Such testing cannot exceed three months and must be explicitly stated in the contract. Exceptions to preliminary testing include minors, individuals undergoing vocational training, young specialists, disabled individuals, temporary or seasonal employees, transfers to new areas or employers, employment through tender processes, or as specified by law.

Article 29: Either party can terminate an employment contract with preliminary testing before its completion by providing written notice within three days or on the day of completion. If the employer terminates the contract, they must provide reasons, and the worker has the right to appeal. If testing is not terminated early, it is considered passed, and termination can only occur according to standard procedures.

Article 29-1: Certain employment-related actions, such as notifications, consent requests, and worker addresses to the employer, can be conducted electronically, provided the employer's technical systems allow for the unambiguous identification of the worker and the use of digital signatures. Local regulations determine the specific procedures for these electronic actions.

Employment Laws

Minimum Wages

As of January 1, 2024, the minimum wage in Belarus is BYN626 per month, which is equivalent to $195.85 per month.

Working Hours and Overtime Pay

In Belarus, the typical workweek consists of 40 hours, usually across five days from Monday to Friday. Here are the details:

Maximum Daily Hours: Employees work up to 8 hours per day, with a shorter 7-hour day permitted before public holidays or non-working days.
Overtime: Employees can work extra hours with their consent, receiving extra pay or time off. There are limits:

10 hours per week
180 hours per year
A maximum of 12 hours per workday (including overtime)

Overtime Pay: Employers must compensate overtime at least double the regular salary. Alternatively, they can offer time off instead of extra pay.

Probation Period

In Belarus, most employees have a probation period of up to 3 months. This period is usually agreed upon in the employment contract and can range from 1 to 3 months.

Notice Period

In Belarus, the notice period for ending employment varies based on several factors:

Minimum Notice: Legally, employers must provide employees with at least one month's notice before termination.
Contractual Agreements: Your employment contract may specify a longer notice period, influenced by factors such as your role, industry, or any collective agreements.
Probation Period: During the probation period, which can last up to 3 months, a shorter notice period of at least 3 days might apply for both the employer and the employee.

13th Month Salary

In Belarus, the 13th-month salary isn't required by law; it's an optional bonus provided by some employers. Here are the key points to understand about it:

Availability: Whether you receive a 13th-month salary depends on your employer's policy. While some companies offer it as a year-end bonus, others may not.
Contractual Details: If your employer provides a 13th-month salary, the specifics, such as calculation and payment methods, would usually be outlined in your employment contract or a collective bargaining agreement.

Termination and Severance Pay

Ending employment in Belarus involves specific steps and possibly offering severance pay to the worker. Here's an overview:

Reasons for Termination:

Mutual Agreement: Both the employer and the employee can agree to end the contract.
Employer's Decision: Employers can terminate due to reasons like misconduct, performance issues, or company changes as per the Labor Code.
Employee's Decision: Employees can resign by giving written notice.

Severance Pay:

Amount: Usually, severance pay is three times the average monthly salary.
Exceptions: The contract or collective agreement might specify a different amount, but it can't be less than two weeks of the monthly salary.

Who Receives Severance Pay?

Employees are eligible for severance pay in various scenarios:

Organizational Changes: If the employer restructures or downsizes.
Employee's Non-Compliance: For violations of work rules or performance issues.
Changes in Working Conditions: If significant changes are made by the employer.
Illness/Disability: When the employee becomes unfit for work due to illness or disability.
Caring Responsibilities: If they need to care for a sick family member.
Conscription: When called for military service.
Reinstatement of Previous Employee: If a previous employee is reinstated legally.
Employee Refusal to Relocate: If the company relocates and the employee doesn't move.
Other Reasons: As outlined in the Labor Code or contract.

Other Considerations:

Notice Period: Both parties usually need to provide written notice, with a minimum of one month.
Compensation for Notice: Employers can offer payment instead of the notice period.
Legal Advice: For specific situations, it's advisable to consult a lawyer familiar with Belarusian employment law.

Personal Income Tax

Belarus applies a single flat income tax rate to most taxpayers. Here's what you should know:

Tax Rate:

Flat Rate: Everyone, whether resident or non-resident, pays a fixed 13% tax rate on their income.

Taxable Income:

Income subject to tax includes:

Salary: Earnings from work, including bonuses and allowances.
Interest: Income from bank deposits and investments.
Rent: Money earned from leasing property.
Dividends: Payments from owning shares.
Royalties: Income from intellectual property.
Other Sources: Such as prizes and gambling winnings.

Tax Filing:

Individuals earning non-employment income usually file tax returns.
Employees: If your income is solely from employment, your employer typically deducts tax from your pay, sparing you from filing returns.

Key Details:

Filing Deadline: Tax returns are typically due by March 31st of the following year.
Payments: If you owe tax, ensure payment by the deadline.
Tax Treaties: Belarus has tax agreements with some nations, affecting your tax obligations.

Employee Benefits

Mandatory Employee Benefits

Paid Time Off:

In Belarus, all employees with employment agreements or contracts are entitled to a minimum of 24 days of paid leave annually. The payment for this leave is determined by the average salary and the number of vacation days, with the employer responsible for making the payment.

Sick Leave:

Sick leave in Belarus is funded by the Fund of Social Protection of Population (FSPP), with payment amounts calculated based on factors such as the type of illness, length of service, and contributions to the FSPP. Payments range from 80% to 100% of the average daily wage or a minimum set by law, depending on the circumstances.

Pension

The labor pension, paid by the FSPP, is available to those who consistently contributed to the FSPP during their working years. To qualify, individuals must meet certain conditions: accumulate a minimum insurance experience of 19.5 years, have at least 25 years of total work experience for men and 20 years for women, and reach the retirement age of 63 for men and 58 for women. The pension amount depends on factors like age, work experience, wages, disability, and the minimum subsistence budget, comprising a minimum pension and an optional payment based on employment history and earnings. In February 2024, the average pension was BYN 811 (approximately US$255), and the minimum pension was BYN 435.31 (approximately US$137).

Social leave for childcare, also funded by the FSPP, allows parents to take up to three years off work to care for a child under 3 years old. During this time, the parent retains their job. Monthly payments are based on the country's average salary for the last quarter, recalculated twice a year. For the first child, the payment is 35% of the average monthly salary; for subsequent children, it is 40%. Since February 2024, payments for the first child are approximately BYN 724.85 (US$228), for the second and subsequent children, BYN 828.40 (US$260), and for a disabled child, BYN 931.95 (US$293). Belarus also provides childbirth payments, depending on the subsistence minimum. For the first child, it is BYN 4,067.40 (US$1,277), and for subsequent children, BYN 5,694.36 (US$1,787). Additionally, women registered for pregnancy up to 12 weeks receive an extra benefit based on one subsistence minimum, currently BYN 406.74 (US$128).

Unemployment Insurance

Unemployed citizens registered with the employment service receive unemployment benefits funded by the Republican budget. The benefit amount can be up to 2 basic units, equivalent to 80 BYN (US$25) per month, determined based on the duration of job search and total work experience. Those with specific family situations, such as having children under 14, a disabled child under 18, or certain health conditions like HIV/AIDS, receive an additional 10% surcharge. Additionally, those with three or more children or two or more disabled children receive an extra 20% surcharge.

Healthcare

Healthcare in the Republic of Belarus is provided free of charge to all citizens through public health institutions, funded by the government's state budget. Additionally, compulsory insurance against industrial accidents and occupational diseases ensures financial protection for employees in case of health-related issues arising from their work. This insurance, managed by the state insurer "Belgosstrakh," covers medical expenses, sick leave, and disability or death benefits resulting from workplace accidents or occupational diseases. The insurance premiums are calculated based on the employee's contributions, with rates set at 0.1% for state organizations and 0.6% for others. The payout amount depends on the individual's average earnings and covers various costs associated with the injury or illness.

Supplementary Employee Benefits

Employers have the flexibility to offer various supplementary benefits, with high-tech and foreign companies typically offering the most extensive packages.

Health Insurance:

Employees can receive assistance for health issues, chronic diseases, or accidents through health insurance. This benefit is popular due to long wait times in state health organizations. Coverage often includes outpatient treatment, with options for inpatient care, dental care, and prescription medications.

Dependent Coverage:

Employees can extend medical insurance to family members, typically at corporate rates, with options for full or partial employer coverage.

Employer-Sponsored Medical Care:

Employers may provide free or discounted medical services at specific centers through agreements with medical facilities, offering employees access to various treatments.

Accident Insurance:

Employees are covered for temporary health disorders, disabilities, or death resulting from accidents or illnesses, with options for classic or extended coverage.

Psychological Support:

Although desired by employees, psychological support benefits are rarely offered and may include face-to-face or online consultations, training, and discounts for additional sessions.

Healthy Lifestyle Programs:

Employers often promote healthy living through gym memberships, fitness classes, or onsite facilities like gyms or meditation rooms.

Education and Development:

Employers may fund training programs, language courses, or professional conferences, and offer educational benefits for employees' children.

Convenience and Comfort:

Companies prioritize creating efficient work environments and may offer onsite amenities like canteens, discounts on food, or transportation compensation.

Recreation and Entertainment:

Employers organize corporate events and travel opportunities, either fully funded or with employee participation.

Other Corporate Programs:

These include pension and life insurance plans, discount programs, and home loan assistance, although they are less commonly utilized.

Reasons for business expansion in Belarus

Strategic Location:

Geographic Advantage: Belarus is situated at the crossroads of Eastern Europe and Asia, offering access to a large market with good transportation and logistics infrastructure connecting it to the European Union (EU) and the Eurasian Economic Union (EAEU). This can be particularly beneficial for companies aiming to serve both regions.

Workforce:

Skilled and Educated Labor: Belarus boasts a highly educated and skilled workforce with a literacy rate exceeding 90%. This readily available talent pool can be a significant advantage for businesses seeking qualified employees.
Competitive Labor Costs: Compared to Western Europe, Belarus offers competitive labor costs, making it an attractive option for businesses looking to reduce operational expenses.

Investment Climate:

Government Incentives: The Belarusian government offers various incentives to attract foreign investment, including:

Special Economic Zones (SEZs): These zones offer preferential tax regimes, simplified bureaucracy, and other benefits for businesses operating within them.
Tax Breaks: Companies in certain sectors might qualify for tax breaks and other benefits.
Simplified Business Registration: The government has streamlined the business registration process to expedite setting up a company in Belarus.

Market Potential:

Growing Domestic Market: Belarus has a growing domestic market with a population of over 9.5 million people. This offers potential for businesses looking to expand their customer base.
Access to EAEU Market: As a member of the EAEU, Belarus offers access to a market of over 180 million consumers with relaxed customs regulations and free movement of goods within the member states.

Other Considerations:

Political Stability: Belarus offers a relatively stable political environment, which can be a positive factor for businesses hesitant to operate in regions with high political risk.
Developed Infrastructure: Belarus has a well-developed infrastructure network, including transportation, communication, and utilities, which can facilitate business operations.

However, it's important to acknowledge some potential drawbacks to consider:

Bureaucracy: While improvements have been made, navigating bureaucracy in Belarus can still be complex for foreign businesses.
Limited Market Size: Compared to larger European markets, Belarus' domestic market is relatively small.
Restricted Internet Access: Freedom of information and internet access can be limited compared to some other countries.

Overall, Belarus presents a mix of opportunities and challenges for business expansion. Carefully evaluating these factors and conducting thorough research is crucial before making a decision.

Employing an Employer of Record (EOR) in Belarus can be a strategic decision for businesses looking to expand globally. By delegating tasks like understanding local labor laws, handling payroll complexities, and ensuring compliance to the EOR, companies can establish operations smoothly without the need to set up a legal entity. This partnership allows businesses to focus on their core objectives and expansion strategies while ensuring that their workforce in Belarus operates in full compliance with local regulations. The EOR streamlines international employment processes and provides expert guidance in navigating Belarusian employment laws.

Employer of Record (EOR) Belarus - Hire and Pay with a Global PEO