Talent Wiki - Russia
Your quick guide on talent and labor compliance norms in Russia
Capital
Moscow
Currency
Russian Ruble (RUB)
Languages
Russian
Payroll Frequency
Bi-weekly
GDP per Capita
$12,574.93
Employer Tax
30.2% - 38.5%
Talent Overview
Russia’s geographical location contributed to the country’s vast riches and high economic standing. They are a leading producer of oil and natural gas, owning about 27.5% of the world’s natural resources. They are the 5th largest economy in Europe and the 11th largest globally. The country’s citizens are some of the most successful in the world due to their economic stability and well-developed education system.
Major economic hubs:
Moscow, St. Petersburg and Yekaterinburg
Skills in demand:
Risk Managers, Computer Programmers/I.T. Staff, Medical and Pharmaceutical
Local Universities
The top local universities are listed below:
Moscow State University
RANKING
Local: 1
World : 225
National Research University Higher School of Economics
RANKING
Local: 2
World : 274
St. Petersburg State University
RANKING
Local: 3
World : 485
ITMO University
RANKING
Local: 4
World : 737
Ural Federal University
RANKING
Local: 5
World : 740
Salary Data
The salaries of some popular jobs in Russia are as follows:
| Job Title | Average Monthly Salary (RUB) | Average Monthly Salary (USD) |
| Customer Service Representative | 37,100 | 551 |
| Software Engineer | 98,200 | 1,458 |
| Financial Analyst | 125,000 | 1,856 |
| Office Manager | 87,300 | 1,296 |
| Graphic Designer | 64,000 | 950 |
| Project Manager | 129,000 | 1.916 |
| Sales Representative | 63,400 | 941 |
Talent Sourcing Tips
Top Local Job Boards:
Head Hunter, Superjob, Rabota, Trovit
Number of LinkedIn users:
7,280,000
Multiplier Recruitment Partner:
Employing in Russia
One of the challenges that foreign companies face when onboarding talents in Russia are the labor laws and compliance that they must follow. Below are some of the essential items to look into when expanding operations in the country.
Employee Contract
Employee contracts in Russia must be written in the Russian Language. Bilingual contracts are allowed as long as one of the languages is Russian.
Probation Period
The Probation Period for Russian employees can be up to 3 months.
Public and Provincial Holidays 2023
| Date | Holiday | Type |
| 1 Jan | New Year Holidays | National Holiday |
| 2 Jan | New Year Holidays | National Holiday |
| 3 Jan | New Year Holidays | National Holiday |
| 4 Jan | New Year Holidays | National Holiday |
| 5 Jan | New Year Holidays | National Holiday |
| 6 Jan | New Year Holidays | National Holiday |
| 7 Jan | Orthodox Christmas Day | National Holiday |
| 9 Jan | Orthodox Christmas Holiday | National Holiday |
| 23 Feb | Defender of Fatherland Day | National Holiday |
| 8 Mar | International Women’s Day | National Holiday |
| 1 May | Spring and Labour Day | National Holiday |
| 9 May | Victory Day | National Holiday |
| 12 Jun | Day of Russia | National Holiday |
| 4 Nov | National Unity Day | National Holiday |
| 6 Nov | National Unity Day Holiday | National Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 28 days | Yes |
| Sick Leave | 3 days | Yes |
| Maternity Leave | 20 weeks | Yes |
Payroll
Payroll Cycle
Employees are usually paid bi-weekly.
Minimum Wage
Minimum wage in Russia varies per district. As of September 2022, it ranges from 15,279 RUB to 22,224 RUB.
Bonus
13th Month Pay
A 13th month bonus is not mandatory in Russia.
Employee Benefits
Russia offers a lot of coverage for their employees. Below are the basic package they offer:
- Pension
- Social Security
- Medical Insurance
- Accident Insurance
Taxes
Employer Payroll Tax
| Type of Tax | Contribution (%) |
| Pension Fund | 22.0% (capped at RUB 1,465,000 a year), with 10% for any amount exceeding this |
| Social Insurance Fund | 2.9% (capped at RUB 966,000/year) |
| Medical Insurance Fund | 5.1% |
| Accident Insurance | 0.2% to 8.5% of the wage fund, depending on the type of work |
Employee Payroll Tax
In Russia, there are no payroll taxes that employees must observe.
Employee Income Tax
| Net Taxable Income (RUB) | Contribution |
| Annual income is less than or equal to 5 million RUB | 13% |
| Annual income is more than 5 million RUB | 15% |
| Non-residents | 30% |
VAT
The Standard VAT in Russia is 20%.
Offboarding & Termination
An employment contract can only be terminated in accordance with a strict list of general reasons, including:
- Mutual agreement
- On the employee’s/employer’s initiative
- Expiry of the contract
- Other specific grounds
Employment can only be terminated on the employer’s initiative for specific reasons, including:
- The employer’s liquidation
- Redundancy
- Numerous failures by the employee to fulfill official duties without good reason provided a reprimand has been issued
- Gross misconduct
- Unauthorized disclosure of confidential information
- Other rarely used grounds
In general, under the current legislation, dismissal is not feasible without prior notice being served on the employee.
The Notice Period for probationary employees is up to 14 days while regular employees have up to 4 weeks.
The severance payment rate depends on the reasons for the termination. Below are the regulations surrounding it:
| Reason(s) for termination | Severance Pay |
| Company liquidation | 1 month’s salary plus the average monthly salary during the period they are looking for a new job (but for no longer than two months from the date of termination). |
| – Failure to conform to the standards of the job due to health
– military service or any alternative civilian service in place of military service. – Reinstatement at work of the employee that previously held the employee’s position. – The employee’s refusal to relocate when the employer moves to another locality. |
2 weeks’s average earning |
Visa and Immigration
Foreigners must secure a work permit and work visa to work in Russia legally. Applicants must secure an invitation from their employers to be able to process their documents. The visa options for expats include Work Visa, Business Visa, and Highly Skilled Migrant Visa.
