Payroll Information

Payroll Cycle

The standard payroll cycle in Russia is monthly, with payments typically made on the 15th day of the following month. Employers are required to calculate and withhold payroll taxes, including personal income tax, social security contributions, and medical insurance premiums.

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Employment Law

Russian employment law is governed by the Labor Code of the Russian Federation. The law establishes minimum wage levels, maximum working hours, and outlines the rights and obligations of employers and employees. In addition, the law sets requirements for employment contracts, such as terms of employment, probation periods, and termination procedures.

In addition to the employment contract, employers in Russia are required to provide employees with a range of benefits, including paid annual leave, sick leave, and maternity leave. Employers must also provide employees with occupational health and safety training and ensure that the workplace meets all health and safety requirements.

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Employment Contract

An employment contract is a legally binding agreement between an employer and an employee in Russia. The contract must be in writing and must include terms such as the nature of the work, salary, working hours, and duration of the contract. The law requires the employer to provide the employee with a written employment contract within three days of starting work.

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Probation Period / Trial Period

In Russia, the maximum probation period is three months. During this period, the employer can terminate the employment contract without providing a reason or notice. However, if an employee is dismissed during the probation period, they are entitled to receive payment for the work performed during that time.

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Working Hours

The standard working week in Russia is 40 hours, with a maximum of eight hours per day. However, there are some exceptions to this rule, such as for hazardous work or shift work. Employers are required to pay employees overtime for any work performed beyond the standard working hours. The overtime rate is typically 1.5 times the employee's regular hourly wage.

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Overtime

Employers must pay employees overtime for any work performed beyond the standard working hours. However, there are limits to the amount of overtime that an employee can work. The maximum overtime hours allowed per year are 120 hours, and the maximum overtime hours per day are four hours.

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Bonus

Employers in Russia are allowed to pay bonuses to employees, but they are not required to do so. Bonuses can be paid as a percentage of an employee's salary or as a fixed amount. Bonuses are usually paid once or twice a year, and they are subject to payroll taxes.

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Termination

Employment contracts in Russia can be terminated by either the employer or the employee. If the employer terminates the contract, they must provide the employee with written notice at least two weeks in advance. If the employee terminates the contract, they must provide written notice at least two weeks in advance, unless the employment contract specifies a different notice period.

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Notice Period

Both employers and employees are required to provide written notice in advance of terminating an employment contract. The standard notice period in Russia is two weeks, although the employment contract may specify a longer notice period.

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Redundancy / Severance Pay

Employers in Russia can terminate employment contracts due to redundancy or business reorganization. In such cases, employers must follow a specific procedure, including notifying the employee of the planned redundancy or reorganization, consulting with the employee and their representatives, and offering alternative employment opportunities where possible. In addition, employers are required to pay employees compensation for their dismissal, which is calculated based on the employee's length of service and average monthly salary.

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Maternity Leave

Female employees in Russia are entitled to 140 days of paid maternity leave, which is divided into two periods. The first period is 70 days, which is taken before the expected due date. The second period is 70 days, which is taken after the birth of the child. During the maternity leave period, the employer is required to pay the employee a salary equal to their average monthly earnings.

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Paternity Leave

Male employees in Russia are entitled to paid paternity leave, which is 14 days. The leave must be taken within six months of the birth of the child. During the paternity leave period, the employer is required to pay the employee a salary equal to their average monthly earnings.

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Parental Leave

Russia also provides for parental leave, which can be taken by either the mother or father. The leave is unpaid, and the duration can be up to three years for each child.

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Vacation and Annual Leave (paid time off)

Employees in Russia are entitled to paid annual leave, which is calculated based on their length of service. The minimum amount of annual leave is 28 calendar days, which includes weekends and public holidays. Employees who work in hazardous or dangerous industries may be entitled to additional annual leave.

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Sick Leave

Employees in Russia are entitled to paid sick leave, which is calculated based on their length of service. The minimum amount of sick leave is 70% of the employee's average earnings for the first three days of absence and 100% of their average earnings for the remaining days of absence. Sick leave can be taken for up to 60 days per year.

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Other Leave

Employees in Russia may also be entitled to other types of leave, such as study leave, which can be taken for up to 14 days per year, and unpaid leave, which can be taken for personal or family reasons.

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Other Benefits

In addition to the leaves and holidays mentioned above, employers in Russia may also offer other benefits, such as health insurance, life insurance, and retirement plans. These benefits are usually offered as part of an employee's total compensation package and are subject to payroll taxes.

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Holiday

There are 15 public holidays, including New Year's Day, International Women's Day, Labor Day, Victory Day, Russia Day, and others. On public holidays, employees are entitled to a day off and are paid their regular salary.

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Taxation

Personal Income Tax

The personal income tax rate in Russia is a flat rate of 13%. This rate applies to all types of income, including salaries, wages, bonuses, and other forms of compensation. The tax is paid by the individual and is deducted at the source by the employer. The tax year in Russia is the calendar year, and tax returns must be filed by April 30th of the following year.

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Social Security

In addition to personal income tax, employees in Russia are also subject to social security contributions. Social security contributions are made by both the employee and the employer and are based on the employee's salary. The total social security contribution rate in Russia is 30%, with the employer paying 22% and the employee paying 8%. Social security contributions are used to fund retirement benefits, healthcare, and other social services.

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Taxation for Foreigners

Non-residents of Russia who work in the country are subject to a flat rate of 30% on their income. Non-residents are defined as individuals who spend less than 183 days in Russia in a calendar year. Foreign residents are also subject to social security contributions in the same way as Russian residents.

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Tax Incentives

There are some tax incentives available in Russia for businesses that invest in certain industries or regions. For example, companies that invest in the Far East of Russia may be eligible for tax breaks and other incentives. There are also tax breaks available for certain types of investment, such as research and development.

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Tax Administration

Taxation in Russia is administered by the Federal Tax Service (FTS), which is responsible for collecting and enforcing taxes. The FTS is also responsible for issuing tax regulations and providing guidance to taxpayers. Taxpayers in Russia are required to keep detailed records of their income and expenses and must submit tax returns on time to avoid penalties and interest charges.

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Visas and Foreign Workers

General Information

Here are the information for obtaining a work visa in Russia in:

Eligibility

In order to obtain a work visa in Russia, a foreign national must have a job offer from a Russian company or organization. The employer must obtain a work permit for the foreign national from the Russian authorities before the visa application can be submitted.‍

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Types of Work Visas

‍There are several types of work visas available in Russia, including short-term work visas, long-term work visas, and highly qualified specialist visas. The type of visa required will depend on the length of stay and the qualifications of the foreign national.

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‍Application Process

‍The application process for a work visa in Russia typically involves several steps. The employer must first obtain a work permit from the Russian authorities. Once the work permit has been issued, the foreign national can apply for a work visa at a Russian embassy or consulate in their home country.

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Required Documents‍

The documents required for a work visa in Russia may vary depending on the type of visa and the nationality of the applicant. Generally, the following documents are required: a valid passport, a work permit, a completed visa application form, a recent photograph, and proof of medical insurance.

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Processing Time

The processing time for a work visa in Russia can vary depending on the workload of the embassy or consulate and the type of visa being applied for. Generally, it takes around 10-14 business days to process a work visa application.

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Duration of Stay

The duration of stay for a work visa in Russia will depend on the type of visa issued. Short-term work visas are typically valid for up to 90 days, while long-term work visas can be valid for up to three years. Highly qualified specialist visas can be valid for up to six years.

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Renewal

Work visas in Russia can be renewed, but the foreign national must apply for a new work permit before the visa can be renewed. The renewal process typically takes around 20 business days.

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Dependent Visas

Foreign nationals who hold a valid work visa in Russia can also apply for dependent visas for their spouse and children. Dependent visas are typically issued for the same duration as the primary visa.

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Employment Restrictions

Foreign nationals who hold a work visa in Russia are only allowed to work for the employer who obtained their work permit. If the foreign national wants to change employers, the new employer must obtain a new work permit and the foreign national must obtain a new work visa.

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