Capital City
Moscow
Currency
Russian Ruble
(
₽
)
Timezone
GMT +2 to GMT +12
Payroll Frequency
bi-monthly
Tax Year
1 January - 31 December
Employer Tax
7.80%
Languages
Russian
Capital City
Moscow
Currency
Russian Ruble
(
₽
)
Timezone
GMT +2 to GMT +12
Payroll Frequency
bi-monthly
Tax Year
1 January - 31 December
Employer Tax
7.80%
Languages
Russian
Russia, the world's largest country by land area and with a significant population, offers ample opportunities for remote talent.
The workforce is highly educated, particularly in fields like Education, IT, and Medicine. The country's thriving IT industry provides a vast pool of skilled developers, with many ICT graduates entering the workforce annually.
ertiary education is highly valued and largely accessible for free in various cities across Russia.
Additionally, employers benefit from the country's low cost of living and modest wages, making it an attractive option for hiring compared to Western counterparts.
Businesses can only operate smoothly in Russia if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Russia below, to avoid any compliance issues.
In Russia, employment agreements are required to be documented in writing. By default, these agreements are considered indefinite unless otherwise specified. However, there is flexibility to terminate a fixed-term contract under specific conditions, provided the duration does not surpass 5 years. The minimum requirements for employment contracts include:
We can help you get a new employee started in Russia quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.
For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
In Russia, the standard working week consists of 40 hours, distributed as 8 hours per day.
In Russia, overtime is restricted to 4 hours in two consecutive days and capped at 120 hours annually. Compensation is set at 150% of the regular hourly rate for the first 2 hours and increases to 200% thereafter, as stipulated in the employment contract or collective agreements.
Typically, probation or trial periods in Russia are established through collective agreements. However, it is a customary practice to have a probationary period of 3 months in Russia. For certain positions such as directors, senior managers, etc., this period may be extended to 6 months.
Setting up a local legal entity in Russia can be time-consuming and expensive. It often involves complex paperwork, local representation, banking, registrations, and ongoing tax filings, which isn't cost-effective if you're simply looking to hire a few employees or test the market. An Employer of Record removes these barriers entirely. Instead of spending months establishing a presence, an EOR lets you hire and onboard employees within days while staying fully compliant.
This enables faster market entry and greater agility. Whether you’re launching a pilot program, supporting a regional client, or adding specialized talent, you don't need to commit to long-term infrastructure to explore new business opportunities. The EOR handles local employment logistics while you retain day-to-day oversight of your hires. This model lets you scale up or down based on business needs, giving you more flexibility with less overhead and risk.
With decades of experience in global compliance and deep local knowledge, we ensure smooth adherence to local laws and regulations across borders.
Unmatched coverage for employment across 180 countries.
An employee portal paired with dedicated, human support.
Reliable, cost-effective services with no annual commitments.
1 January - 31 December is the 12-month accounting period that businesses in Russia use for financial and tax reporting purposes.
The payroll cycle in Russia is usually bi-monthly, with employees being paid every half month as indicated in collective agreement.
The minimum wage for employees in Russia is typically 140.25 RUB per hour, amounting to ~22,440 RUB per month for a typical 40 hour work week.
In Russia, there is no legal obligation for employers to make 13th-month salary payments.
Employer payroll contributions are generally estimated at an additional 7.8% on top of the employee salary in Russia.
In Russia , the typical estimation for employee payroll contributions cost is around 0%.
The individual income tax in Russia is calculated using simple progressive rates based on income.
In Russia, retirees typically receive an average gross pension of around 19,000 RUB Russian rubles, reflecting an increase of approximately 2,438 RUB compared to the previous year.
Employers operating in Russia must navigate a multifaceted payroll tax system that includes withholding personal income tax (PIT) at rates of 13% for residents earning up to 5 million RUB annually, 15% for income above that threshold, and 30% for non-residents.
Additionally, employers are responsible for contributing to various social funds: 22% to the Pension Fund (with a reduced rate of 10% for income exceeding 1,465,000 RUB), 2.9% to the Social Insurance Fund (up to 966,000 RUB), 5.1% to the Medical Insurance Fund, and 0.2% to 8.5% for Accident Insurance, depending on the industry risk classification. Compliance requires timely reporting and remittance of these taxes, with monthly and annual reporting obligations to Russian tax authorities.
To manage these complexities and ensure adherence to Russian tax laws, many employers use payroll management software to consolidate payroll data and maintain compliance with local regulations.
One of the biggest risks in global hiring is payroll mismanagement. In Russia, even small errors in tax reporting or social contribution payments can trigger audits, fines, or reputational damage. For companies without in-country expertise, the risk isn’t worth taking. An Employer of Record removes this burden by owning the legal responsibility of payroll, executing every step with built-in compliance.
Key Ways an EOR Supports Payroll in Russia:
In Russia, work permits and visas are essential for employers hiring foreign workers. The process involves obtaining work permits, applying for the appropriate visa types, and adhering to the legal requirements set by Russian authorities. The key visa types include the Single-Entry Work Visa, Multiple-Entry Work Visa, and Highly Qualified Specialist (HQS) Visa, each catering to different employment scenarios. Employers must handle the sponsorship process, including securing quota approval, submitting applications, and ensuring compliance with Russian labor laws.
The annual leave entitlement in Russia is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
The following 8 public holidays are celebrated in Moscow, Russia:
Employees in Russia are entitled to 28 calendar days of paid leave annually, with a minimum of 14 consecutive days. Certain employee categories may receive additional leave. Vacation pay, equivalent to the average salary of the past 12 months, must be paid at least 3 days before leave, and any unused vacation days carry over for an extra 12 months.
In Russia, pregnant employees receive a 708.23 RUB early registration allowance for the first 12 weeks, while maternity leave allowance, capped at 340,795 RUB for 140 days, is calculated based on average daily wage. Childbirth allowances and childcare leave up to 3 years, with a maximum allowance of 29,600.48 RUB for 1.5 years, are directly paid by the social fund to employees. Standard maternity leave comprises 140 calendar days – 70 days before the expected delivery date and 70 days after childbirth.
Relatives or guardians caring for a child up to 18 months receive paid parental leave covered by the Russian Federation's Social Insurance Fund. They are entitled to 5 days of unpaid leave after the child's birth and, when raising the child without the mother, receive benefits akin to those offered to women.
In Russia, there is no specific statutory paternity leave. However, fathers can utilize parental leave provisions.
In Russia, employees are entitled to sick leave for illness or injury. Employers cover the sick leave allowance for the first 3 days, and from the fourth day onward, the Social Insurance Fund takes over. The daily allowance, depending on the employee's service length, does not exceed 2,301 RUB but can be higher if chosen by the employer, applicable even for those caring for a sick child or relative.
Employees are granted 5 days of paid leave in the event of the death of a family member.
Employees pursuing higher education are eligible for 40 days of paid leave in the initial two years of study and 50 days of paid leave for the subsequent term, with the employer covering the allowance.
In Russia, benefits play a central role in attracting and retaining top talent. Employees often expect more than just a paycheck – they're looking for stability, healthcare coverage, pension plans, and other perks that show a company is invested in their well-being. If you're not familiar with what’s standard or required, you risk falling short. An Employer of Record helps bridge that gap by administering a locally competitive benefits package that meets both legal requirements and employee expectations.
An EOR doesn't just check boxes, they make sure your employees receive benefits that are timely, properly communicated, and well-managed from the moment they’re onboarded. From managing healthcare contributions to adjusting for regional differences in leave or bonus entitlements, an EOR acts as both a legal and operational partner. The result is a better employee experience, less administrative burden on your internal team, and greater confidence that your offer is aligned with what top candidates in Russia actually want and need.
Terminations in Russia must be done for a just cause, and at-will termination is not allowed. Compliant terminations include:
In Russia, providing notice periods is not mandatory except in specific situations, such as dismissals resulting from company liquidation, redundancy, unsuccessful probation, or the conclusion of a fixed-term contract. Some instances are:
In Russia, termination due to liquidation or redundancy results in severance pay equal to the average monthly wage. Employers support dismissed employees for two months in their job search. If no job is found by the third month and the employee registered promptly with the employment service, they qualify for specific benefits.
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
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As of January 1, 2025, Russia's minimum wage rates are:
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