Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
An employer of record in Russia assumes the vital responsibility of overseeing essential aspects of employment, including payroll management, compliance with minimum wage laws, comprehensive hiring processes for employees, contractors, and expatriates, thorough background checks, administration of employment contracts, smooth onboarding procedures, provision of employee benefits, adherence to social security regulations, facilitation of healthcare and insurance coverage, implementation of leave policies, observance of public holidays, management of work permit and visa requirements, supervision of probation periods, compliance with notice period guidelines, execution of termination and severance processes, and adherence to personal income tax obligations.
| Overview | |
| Continent | Europe |
| Country | Russia |
| Capital | Moscow |
| Time zone | UTC+02:00 (Kaliningrad Time) — Kaliningrad Oblast |
| Total Time zones | 11 |
| Working hours per week | 40 |
| Working week | Monday–Friday |
| Typical hours worked | 8 |
| Personal Tax filing deadline | 30th April |
| Financial Year | 1st January to 31st December |
Employees' Minimum Employment Rights in Russia
Working Hours
The standard working week in Russia is 40 hours, although there are exceptions allowed by the Labor Code.
Overtime
Overtime refers to any time worked beyond the standard working hours, typically 40 hours per week.
Employees are generally permitted a maximum of 120 hours of overtime in a year, with no more than 4 hours of overtime in any consecutive 2-day period. In most cases, overtime requires the employee's prior written consent.
Overtime must be compensated at a rate of 150 percent of the regular hourly rate for the first 2 hours worked in a single day, and 200 percent thereafter. Alternatively, upon the employee's written request, the employer can grant compensatory time off in lieu of payment, which should be no less than the amount of overtime worked.
Protected employee categories, such as employees under 18, pregnant women, women with children under 3 years old, disabled employees, and other categories defined by federal law, have specific limitations on overtime.
Non-standard working hours, agreed upon in the employment contract, allow employees to occasionally work outside regular working hours without it being considered overtime.
Wages
Minimum monthly earnings are determined by law and may vary by region. As of January 1, 2022, the federal minimum monthly wage is RUB13,890, while in Moscow, it is RUB21,371.
Vacation
Employees are entitled to a minimum of 28 calendar days of annual leave. Certain categories of employees, such as those with non-standard working hours, may have extended statutory minimums.
Sick Leave and Pay
Employees are entitled to receive statutory sick leave compensation. The Russian State Social Insurance Fund, funded by the employer's mandatory contributions, provides this compensation. The amount varies depending on the grounds for sick leave and is generally a percentage of the employee's average earnings. The maximum compensation is determined by federal law and subject to annual review. Employees must provide a medical certificate in electronic form for their sick leave. Employers cannot terminate an employee's employment during their sick leave.
Maternity/Parental Leave and Pay
Paid maternity leave begins no later than 70 calendar days before the birth and continues for 70 calendar days after. It may be extended for multiple births or birth complications. The maternity leave allowance is determined by federal law and paid by the Russian Social Insurance Fund.
Individuals caring for a child, including the child's mother, father, or other relatives, can request childcare leave until the child reaches 3 years of age. The childcare leave allowance is established by federal law and paid by the Russian Social Insurance Fund. Employees retain the right to return to work during the entire period of maternity or childcare leave.
Employment Options in Russia
Employee
Employees in Russia have the option of entering into indefinite or fixed-term employment agreements, either on a full-time or part-time basis.
A fixed-term employment agreement can only be for a duration of up to 5 years and is subject to specific circumstances outlined in Article 59 of the Labor Code.
Independent Contractor
Companies have the ability to engage independent contractors directly. It is important to note that reclassifying a services agreement as a labor agreement can result in severe penalties.
Agency Worker
Generally, the loaning of labor, or secondments, is prohibited in Russia. However, there are two exceptions to this rule:
- Private (accredited) employment agencies may provide secondment services.
- Secondments may occur between related entities, including affiliates or parties involved in shareholder agreements.
Employment Contracts and Policies in Russia
Employment Contracts
In Russia, it is mandatory for an employment contract to be documented in writing. The contract should clearly outline important details, including the date of employment commencement and other essential provisions.
Probationary Periods
Probationary periods are generally allowed in employment contracts. For newly hired employees, the probationary period can be up to 3 months, while certain executive positions may have a probationary period of up to 6 months.
Policies
Employers in Russia are required to establish written internal policies, such as internal labor regulations and a personal data protection policy. Additionally, employers have the option to implement additional policies, such as a remuneration policy or a confidential information protection policy.
Third-Party Approval
Internal labor regulations and certain other policies must receive approval from employees' representatives and trade unions if at least half of the company's employees are members of these organizations. This ensures proper involvement and representation of employees in the approval process.