Hiring remote talent in Russia gives global companies a strategic edge. The country offers deep technical talent, competitive salaries, and a strong STEM workforce. Despite its many challenges, hiring employees here can unlock value for global businesses — if you navigate labor laws and compliance correctly.
Employment in Russia: Current hiring trends
- Hiring is down by 15% due to ongoing geopolitical and economic pressures.
- Labor shortages persist, especially in skilled sectors.
- The Russian economy has slowed down immensely, strengthening the gig economy and the need for project-based roles.
Demographic shifts, regulatory changes, and economic pressures are reshaping how HR teams approach global hiring. Employing workers in Russia can give your business a strategic edge, but navigating labor laws, regional rules, and currency controls can slow growth and increase compliance risks. Luckily, in-house hiring is not the only option.
This guide delivers clear, practical insights into hiring and growing teams in Russia, whether you’re managing in-house or leveraging an Employer of Record (EOR).
Why do global businesses hire in Russia?
With over 3.5 million cybersecurity positions unfilled globally and similar gaps across IT roles, Russia stands out as a rich source of technically skilled, cost-effective talent.
- Highly educated workforce: 82% of 25-34 year-olds in Russia* are enrolled in tertiary education programs.
- IT and emerging tech talent: Russia is globally recognized for its advanced technical training and high-level capabilities in cybersecurity, making it a hub for elite IT talent.
- Competitive salaries: The cost of living in Russia low — roughly 77% lower than the United States and 61% lower than Singapore, which translates to lower salaries.
In January 2025, the minimum wage in Russia was RUB22,440, or approximately $251, far lower than in most European countries.
Country | Minimum Wage |
Luxembourg | $2,981 |
Croatia | $1096 |
Latvia | $836 |
Russia | $251 |
Note: The minimum wage in Russia differs by region. For example, in Moscow, it is higher (RUB32,916) while in Saint Petersburg, it is lower (RUB28,750).
Beyond minimum wages, employment in Russia comes with several legal obligations and hidden costs. As an employer in Russia, you must clearly understand these requirements to stay compliant and plan your hiring budget precisely.
Employment in Russia: Understand compliance and costs
Before hiring, let’s understand key aspects of Russian employment law and practices:
Language of instruction
Russian is the primary language for business communication across industries. Proficiency in Russian may be essential for managing hiring and administrative tasks.
Labor Code of the Russian Federation
Employers must adhere to the Russian Labor Code when hiring employees in Russia.
- Types of employment contracts: The Code outlines different employment contracts, including open – ended and fixed – term contracts. It specifies mandatory clauses covering the employee’s job function, start date, compensation, working conditions, rights, and responsibilities.
- Hiring procedures: The Labor Code details the hiring process, including documentation requirements, probationary periods, and employment contract details.
- Working hours and time off: The Code regulates daily and weekly rest periods, lunch breaks, and annual paid leave of a minimum of 28 calendar days for the working population. The standard working week in Russia is generally 40 hours. You may need to pay overtime if your employees work more than eight hours a day.
- Wage and salary regulations: The Labor Code establishes the principle of equal pay for equal work and guarantees a minimum wage of RUB22,440* per month.
- Discipline and liability: The Code outlines the grounds for disciplinary actions, including reprimands, warnings, and dismissals. It details the procedures employers must follow when imposing such measures and addresses the material liability of both employers and employees.
- Termination of employment: The Labor Code provides an exhaustive list of grounds for terminating an employment contract, including mutual agreement, the employee’s initiative, the employer’s initiative(with specific protections for certain categories of employees), and other circumstances beyond the parties’ control. You must follow strict procedures to ensure lawful termination.
Average salaries in Russia
As mentioned earlier, average salaries in Russia are highly competitive. Here’s an approximation of the monthly average wage for seven different positions:
Job Title | Average salary range (RUB) | Average salary range (USD) |
Customer Service Representative | 37,100 – 56,700 | 493 – 754 |
Software Engineer | 95,700 – 144,000 | 1,272 – 1,915 |
Software Developer | 98,200 – 156,000 | 1,306 – 2,074 |
Data Scientist | 162,000 – 249,000 | 2,154 – 3,311 |
UX Designer | 70,700 – 112,000 | 3,500 – 7,000 |
Project Manager | 129,000 – 198,000 | 1,715 – 2,633 |
Sales Representative | 63,400 – 101,000 | 843 – 1,343 |
The cost of hiring an employee goes beyond average salaries. When budgeting for this role, employers must consider their tax and social obligations. This includes compulsory employee benefits and social insurance.
Employment benefits and social insurance
Employers in Russia must contribute to several state social insurance funds, including the Pension Fund of the Russian Federation (PFR), the Social Insurance Fund (FSS), and the Federal Compulsory Medical Insurance Fund (FOMS).
Taxes in Russia
Employers are responsible for calculating and withholding NDFL (Personal Income tax) at the applicable rate — typically 13% for residents — and submitting regular tax reports to the authorities to ensure compliance.
Cost of hiring an employee in Russia
The cost of employment in Russia becomes significantly higher than the base salary when you add all these mandatory costs. Use our employment cost calculator to estimate your cost-to-company and plan budgets more realistically.
Remember, non-compliance with labor laws can result in penalties and fines. Ensuring compliance often means employing legal counsel, translators, and payroll or tax consultants in Russia.
Additionally, you must factor in the administrative costs of employment — the time and money your staff will spend on payroll processing, compliance reporting, and employee onboarding.
Global companies can save on these expenses and headaches by using an Employer of Record (EOR). An EOR not only streamlines hiring but also offers a flexible, low-risk way to build teams in a complex and unpredictable environment like Russia.
What is an EOR, and how does it simplify employment in Russia?
An Employer of Record (EOR) is a third-party organization that legally employs talent on your behalf. You manage talent acquisition and day-to-day work while the EOR handles everything else — contracts, payroll, taxes, benefits, and compliance.
The hiring process can seem complex, from language barriers and strict documentation rules to mandatory social contributions and evolving compliance expectations. Whether you hire through in-house teams or an EOR, understanding each step is key to building your team effectively.
How to hire employees in Russia in six steps
Here’s a step-by-step guide on how to hire employees in Russia — and how using an EOR compares at every stage.
Step 1: Set up a legal entity and register with the state funds
To hire directly in Russia, you must first set up a legal entity. Once registered:
- Enroll in the Pension Fund of the Russian Federation (PFR), Social Insurance Fund (FSS), and Federal Compulsory Medical Insurance Fund (FOMS).
This registration is mandatory before you can run payroll or sign legal employment contracts. - Register with the tax authority (Federal Tax Service) and obtain a company TIN (Taxpayer Identification Number) and KPP (Tax Registration Reason Code).
These are needed to open bank accounts, issue payslips, and file taxes.
With an EOR
An Employer of Record (EOR) eliminates the need to set up an entity in Russia. It acts as the legal employer, allowing you to hire employees in the country within days.
Step 2: Understand Russian labor laws
Russia’s centralized Labor Code governs employment terms nationwide. Employers must adhere to the requirements around:
- Written employment contracts (in Russian)
- Probation periods (up to three months)
- Standard working hours (40 hours per week)
- Paid annual leave (at least 28 calendar days)
- Sick leave and maternity leave
- Paid public holidays
- Overtime compensation
- Termination procedures and severance
With an EOR
Your EOR partner ensures every contract, benefit, and employment policy aligns with Russian labor law. This reduces compliance risks and ensures your company is protected from disputes or penalties.
Step 3: Draft compliant contracts, classify workers correctly
In Russia, the employment relationship must be formalized through a written contract and an employment order.
- All contracts must be written in Russian and must include job title, responsibilities, compensation, probation (if any), and termination clauses.
- Contracts must be signed before the first working day and followed by a hiring order (prikaz)—a formal internal document confirming employment
When drafting contracts, you must also be careful to avoid misclassification risks. Misclassifying employees as independent contractors can result in fines, back pay, and legal challenges. You can only classify full-time workers with set schedules and company oversight as employees.
With an EOR
Your EOR ensures correct worker classification and provides compliant Russian employment contracts, so you avoid misclassification risks from the start.
See how you can generate a compliant contract within minutes with Multiplier:
Step 4: Set up compliant payroll and manage all contributions
Running payroll in Russia involves more than just paying salaries. Employers must:
- Pay wages in Russian rubles (RUB)
- Issue monthly payslips
- Deduct and remit contributions to:
- Pension Fund (22% of salary cap)
- Social Insurance Fund (2.9%)
- Medical Insurance (5.1%)
- Withhold and report NDFL (13%–15% Personal Income Tax) for every employee.
- Follow official exchange rate rules when paying foreign workers.
- File accurate reports with the Russian tax authorities
Failure to comply can lead to audits, penalties, and delays in payment processing.
With an EOR
An EOR like Multiplier manages payroll in full compliance with Russian law. We calculate and remit all required contributions, handle NDFL withholdings and filings, and issue payslips in local currency, giving you peace of mind and freeing your team from the complexities of local tax and payroll rules.
Step 5: Smoothly onboard your new hire
Once you have set up a compliant backend, onboarding includes:
- Signing official employment order (prikaz)
- Providing work instructions and internal policies
- Registering for electronic sick leave (optional)
- Recording an employee in the internal HRIS or labor registry
Note: Russian employees traditionally used a trudovaya knizhka (labor book) to track employment history. Today, most now opt for digital records via the Electronic Personnel Document Flow (EPDF) system. Employers must manage documentation accordingly and report updates to the Social Fund.
An excellent onboarding process goes beyond drafting compliant contracts and helps new hires, especially remote ones, meet regulatory requirements and adapt to company culture.
With an EOR
An EOR streamlines onboarding by handling employment documentation (in Russian) and essential registrations. It ensures a legally compliant and culturally appropriate start for new employees while making them feel supported from day one.
Step 6: Maintain ongoing compliance and reporting
Compliant hiring in Russia doesn’t end with onboarding. Employers must stay on top of ongoing obligations, including:
- Monthly and quarterly tax and insurance reporting
- Annual personal income tax reports (6-NDFL form)
- Mandatory labor statistics to Rosstat (in some industries)
Russian employment laws continue to evolve. For the latest updates, consult a local HR compliance expert or visit trudvsem.ru.
With an EOR
An EOR takes care of all ongoing compliance filings, audits, labor inspections, and employee data updates — so your team doesn’t have to. You stay compliant with minimal effort and zero surprises.
With these six steps, you’ve seen what it takes to hire employees in Russia compliantly — from setting up a legal entity to managing payroll, documentation, and ongoing reporting.
Here’s a checklist to help you stay on track.
Hiring checklist: What to cover before your first Russian hire
- A registered legal entity and tax ID
- Enrollments with the Pension Fund, Social Insurance Fund, and Medical Insurance Fund
- Compliant employment contracts (in Russian, signed before the first working day)
- Proper worker classification (employee vs contractor)
- Payroll set up in RUB with payslips and mandatory contributions
- NDFL tax withholdings and reporting (monthly and annual)
- Onboarding steps, including a signed prikaz (employment order)
- EPDF setup if the employee opts for a digital labor record
- Ongoing filings for taxes, insurance, and labor statistics (e.g., Rosstat)
Staying compliant at every stage takes time, resources, and local knowledge. Let’s quickly recap how managing these processes in-house compares to partnering with an Employer of Record (EOR) like Multiplier.
Recap: In-House HR versus Employer of Record (EOR) in Russia
If your business has already established a strong HR and legal team in Russia, in – house hiring might be a suitable option for you. For businesses new to the Russian labor market, partnering with a globally trusted EOR like Multiplier is a practical, efficient, and flexible alternative.
With Multiplier, you get:
- Employment contracts compliant with the Russian Labor Code
- Automated tax withholdings and payroll
- All-in-one platform to simplify HR tasks across onboarding, benefits, and more
- Complete regulatory compliance
Why HR teams choose Multiplier for hiring in Russia — and beyond
When expanding globally, HR teams must weigh different hiring options: building an in-house team, setting up a local entity, or partnering with an Employer of Record (EOR). Each approach comes with its own costs, risks, and timeframes.
By partnering with a trusted global employment platform like Multiplier, businesses can navigate complex labor markets like Russia confidently — without the operational burden or legal guesswork.
Multiplier has helped hundreds of businesses hire quickly, stay compliant, and scale teams across borders. Companies like Aspire have saved over $ 1 M+ in expansion costs launching into new markets within weeks — all without setting up local entities.
Excited to get started with hiring in Russia?
Book a demo with Multiplier today to explore how our global employment platform can support your broader international hiring needs.
Frequently asked questions
Q. Are probation periods necessary when hiring in Russia?
While probation periods aren’t necessary when hiring Russians, it’s a standard practice. As per Russian law, probation periods cannot extend beyond three months.
Q. How do I pay a Russian remote employee?
Russia follows a bi-monthly payment cycle. Salaries must be paid to Russian employees at least once every fourteen days. The date of compensation is usually predetermined in the employment contract. If an employer delays payment for more than 15 days, Russian employees have the right to stop working if they have given prior notice to their employer.
The easiest way to pay your Russian remote employees would be through PEO or EOR platforms like Multiplier.
Q. Can Russian remote employees be paid in foreign currencies?
As per the local law, Russian employees must be paid in Russian Rubles (RUB). Payment in other foreign currencies – whether in cash or through bank transfer – may be considered a violation of the law by state authorities.
Q. How do I terminate a Russian remote employee?
You can only terminate an employment contract according to a strict list of general reasons, including:
- Mutual agreement
- On the employee’s/employer’s initiative
- Expiry of the contract
- Other specific grounds
An employer can terminate employment for the following reasons:
- The employer’s liquidation
- Redundancy
- Numerous failures by the employee to fulfil official duties without good reason, provided you have issued a reprimand previously.
- Gross misconduct
- Unauthorized disclosure of confidential information
- Other rarely used grounds
In general, under the current legislation, dismissal is not feasible without serving prior notice. The duration of the notice period depends on the grounds for termination and ranges from zero (if the employment contract is terminated for just cause) to two months (in the case of liquidation of the employer organization).
An employee can initiate termination by providing the employer with two weeks’ prior written notice (for directors, one month’s notice). These notice periods cannot be extended in the individual employment contracts.
Q. How much severance pay is due if I terminate employment?
Severance payment depends on the reasons for the termination and generally amounts to an average month’s wage. This severance pay may be cut to two weeks’ average earnings if you terminate employment for the following reasons:
- Failure to conform to the job standards if an employee’s health hinders them from continuing to perform specific duties.
- If the employee is called up for military service or assigned to an alternative civilian service.
- If an employee is reinstated at their previous workplace.
- If the employee refuses to relocate when the employer moves to another locality.
Severance pay of one month’s average earnings is paid to employees in the event of termination due to redundancy or liquidation. In the event of termination due to mutual agreement, the amount of severance is usually established in the termination agreement.
Q. Where do I look for remote talent in Russia?
When looking for the best places in Russia to hire remote talent, you typically want to hire talent from the following regions:
- Moscow
- St. Petersburg
- Novosibirsk
- Nizhny Novgorod
- Kazan
These regions have a higher economic activity compared to the rest of Russia, and have larger business and tech hubs with more available English talent. Getting graduates from the following top universities in the country is also a plus:
- Lomonosov Moscow State University
- Saint Petersburg State Polytechnic University
- Moscow Institute of Physics and Technology
- Novosibirsk State University
- Tomsk State University
Another way to hire talent is to post listings on popular job sites and portals or hire through a trusted recruitment agency. In Russia, the most popular jobs portals are:
- Head Hunter
- Superjob
- Rabota
- Trovit
Q. What are the computations for income tax in Russia?
Net Taxable Income (RUB) | Contribution (%) |
Annual income is less than or equal to 5 million | 13% |
Annual income is more than 5 million | 15% |
Non-residents | 30% (flat rate) |
Read more in our comprehensive guide to payroll in Russia
Q. When must an employer pay overtime in Russia?
Russian employees usually work an average of eight hours a day, across five days a week. Russians are also required to have at least a 30-minute rest break each day by law. This is normally extended to an hour by most companies. Should you require your employee to do overtime, here is how you can calculate overtime pay:
Period of Overtime | Hourly Salary Paid (%) |
First 2 hours | 150% |
Next 2 hours | 200% |
According to Russian law, overtime working hours should also not exceed 4 hours in 2 successive days and 120 hours per year.
Sources
Statista | Monthly minimum wage in Russia
WageIndicator.org | minimum wage- Russia
The Russian Study Abroad Market
Russian Labor Code
The Federal Fund for Mandatory Medical Insurance (FOMS)
The Russian Government | The Fund of Social Insurance of the Russian Federation
