Employment Law

Russian Employment Contract

Russian law requires employers to provide each employee with a formal written employment contract. These contracts need to contain the details of the agreement, such as benefits, salary/wages, etc.

Any reference to compensation should be in Russian rubles, the national currency, and the contract should be worded in Russian.

Working with our Russian PEO, Horizon's team of local experts can provide assistance in drafting strong employment contracts that comply with local regulations.

Fixed Term

Indefinite

Russian Working Hours

The standard working week in Russia is 40 hours. Any hours worked beyond this must be agreed in advance and the employer must pay overtime. In addition, employees are generally not allowed to work more than four hours of overtime in two days.

Holiday Policy

Russian Vacation

Russian employees are entitled to at least 28 days of paid leave. A minimum of 14 days is required for a vacation, and any vacation beyond the normal 28 days can be "sold" for extra pay.

Russian Sick Leave

In Russia, employees who are absent from work due to illness or injury are still entitled to payment provided they provide a medical certificate. The exact amount of compensation ranges from 60% to 100% of regular wages and is based on a range of factors.

Maternity and Paternity Leave in Russia

Russian mothers typically receive 140 days of paid leave, including 70 days before and after the birth of their child. They may also be entitled to extended leave in certain circumstances, such as when more than one child is born, or if they have related health problems. The furlough can also be extended to a maximum of three years (without pay) and the employer must retain the job during this period

In Russia, fathers are not entitled to any paternity leave.

Russian Taxes

Employers in Russia are required to contribute to their employees’ social security benefits. These contributions cover pensions, disability insurance, etc., and total about 22% of salary (although there is a maximum limit).

The income tax rate in Russia is 13% of income, but this may differ in some cases, such as for foreign workers.

Russia's corporate tax rate is generally 20%.

Health Insurance in Tussia

Russia has a nationalized healthcare system, so employers are not required to provide health insurance to their employees. However, some companies may choose to provide private insurance to their employees.

Employee Severance Pay and Termination of Contract in Russia

Employees are subject to fairly strict protections in Russia, so employers often need to negotiate termination terms on a case-by-case basis. Typically, employees receive several months (three months or more) of severance pay in lieu of a notice period.

To avoid legal trouble, it is recommended to seek professional advice when terminating employees in Russia.

Workers who are on probation (three months only) are generally not entitled to these notice periods.

Salary and Benefits

Russian Compensation Law

As of 2020, the monthly minimum wage in most regions of Russia is 12,130 rubles. The minimum wage in the country's capital, Moscow, is higher at 20,195 rubles.

Welfare Administration in Russia

Setting up an employee benefits system in Russia can be a long and complex process, and language, legal and administrative procedures can all hinder your expansion. An easy alternative is to outsource your Russian benefits administration to Remoly. Our team will ensure your benefits system is set up quickly and compliantly so you can focus on the important work of expanding into Russia.