Hire and pay employees in
Russia, hassle-free

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 - 13%
• Above RUB 5 million annually - 15%

The employer cost is generally estimated at 7.8% of the employee salary.

• Single Tax Payment: 7.6%
  Medical insurance
  Pension insurance
  Social insurance
• Accident Insurance - 0.02%
• One-off Mandatory Wet Ink Employment Agreement Handling Fee - USD 80

Please note: Once the gross monthly salary of an employee from the beginning of the calendar year exceeds the limit of 1,917,000 RUB, no Single Tax Payment contribution will apply until the end of the year. The amount does not vary for employees joining mid-year.

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

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

Pregnant employees are entitled to 140 days of paid leave. 70 days must be taken before the child's birth and 70 days must be taken after the child’s birth. The employee will receive 100% of the average salary of the last 2 years up to a maximum daily amount. The Social Insurance Fund will be responsible for this pay. The maximum daily amount in 2022 was RUB 2,572.60.

The employee can extend leave for medical reasons in the following events:

• Complicated delivery – 86 days
• Birth of two or more children – 110 days

Employees are entitled to 1.5 or 3 years of parental leave, the duration of the leave taken is based on the parents’ discretion. Either parent can take parental leave. The FSS will pay 40% of the average salary of the last 2 years until the child is 1.5 years old.

Parental leave can't be extended.

Employees are entitled to paid sick leave for up to 15 days. This leave is paid at different rates, ranging from 60% to 100%, based on the employee's average salary over the past 2 years. The first 3 days are paid by the employer, after which each additional day is paid by Social Security.

If the employee is sick for longer than 15 days, a commission is appointed which can extend the sick leave up to 12 months. The employee must visit a doctor every 15 days to extend the sick leave.

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Russia can be complex. There is no at-will termination in Russia for employers and termination must be done for just cause.

Compliant terminations include:

• By mutual agreement
• Voluntarily by the employee
• Unilaterally by the employer in accordance with legislation
  • Probation period
  • Liquidation of organization
  • Reduction of the number of staff of employees of the organization
  • Repeated failure by an employee to perform work duties without valid reasons
  • Gross violations (violation of labor protection requirements, etc.)
• By the expiration of the contract

The notice period depends on the type of termination.

In Russia, severance pay will depend on the grounds of dismissal and duration of employment.

Russia celebrates 14 national holidays. National public holidays include:

1. New Year (7 days)
2. Orthodox Christmas
3. Defender of Motherland Day
4. International Women's Day
5. Spring and Labour Day
6. Victory Day
7. Russia Day
8. National Unity Day

Contracts must be in Russian and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• Term of an employment contract
• Type of contract (main or part-time)
• Date of receipt
• Place of work
• Probationary conditions
• Job title nature of work
• Duties of the parties
• Responsibility of the parties
• Salary
• Work and rest hours
• Vacation
• Working conditions in the workplace
• Compulsory insurance clause
• Other additional conditions

Employees hired using Deel have a probation period of 90 days, which you can extend up to 180 days for more senior roles. As of January 2022, it's Deel company policy to include probation periods in all employment contracts moving forward.

Probation periods help an employer and the employee ensure they're a hiring match, allowing a company to quickly decide if it's a fit or the employee to see if the job aligns with their career goals.