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Your Guide to Hiring Employees and Contractors in Russia

Capital city

Moscow

Currency

Russian Ruble (RUB)

Language(s)

Russian

Ease of doing business

Very easy

Payroll frequency

Monthly

Employer taxes

30.02% to 38.50%

Payroll

Payroll Cycle

According to Russian legislation, salary shall be paid at least every half month on a day specified by the work regulations, by a collective agreement, or by an employment agreement. 

Companies are now required to pay salary no later than 15 calendar days after the last day of the payroll period.

Minimum Wage Requirements

The minimum wage is RUB 12,792 per month. There are region-specific minimum wages:

Moscow – RUB 20,589

St. Petersburg – RUB 19,000

Individual Income Tax

The individual income tax ranges from 13% to 15%. Income tax is calculated using simple progressive rates based on income.

Up to RUB 5 million annually

Tax rate: 13%

Above RUB 5 million annually

Tax rate: 15%

Employer Cost:

The employer cost is generally estimated at 30% of the employee salary.

Pension Insurance: 22.0%

Medical Insurance: 5.1%

Social Insurance: 2.9%

Accident Insurance: 0.02%

Working Hours

Work Week

Monday to Friday.

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. 

Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 4 hours of overtime over 2 consecutive days and can work a maximum of 120 hours of overtime per year. For additional hours, employees are paid:

  • 150% of the hourly rate for the first 2 hours
  • 200% of the hourly rate for the following hours

Employment Termination

The termination process varies according to the employment agreement and collective agreement in place and is based on the type of contract and reason for termination.

Notice period

Notice periods in Russia are generally set at 14 days and three days if the employee is still in the probation period/expiry of a fixed-term contract.

Probation periods

Probation or Trial periods are generally set within the collective agreements; however, common practice in Russia is three months, extending to 6 months for directors, senior managers, etc.

These details are subject to change by the respective government and regulatory authorities in each country.

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