Talent Wiki - Russia

Your quick guide on talent and labor compliance norms in Russia

Talk to our experts

Capital

Moscow

Currency

Russian Ruble (RUB)

Languages

Russian

Payroll Frequency

Bi-weekly

GDP per Capita

$11,900

Employer Tax

30.2% - 38.5%

Supplementary Guide for Employment and Expansion in Russia

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 in the Russia are as follows:

Moscow State University

RANKING

Russia : 1

World : 129

National Research University Higher School of Economics

RANKING

Russia : 2

World : 146

St. Petersburg State University

RANKING

Russia : 3

World : 322

Russian Presidential Academy of National Economy and Public Administration

RANKING

Russia : 4

World : 401

Kazan Federal University

RANKING

Russia : 5

World : 470

Salary Data

No.	Job Title	Salary Range (in Local Currency)	Salary Range (in USD)
1	Customer Service Representative	19,300 - 56,700	262.73 - 771.85
2	Software Engineer	51,700 - 144,000	703.78 - 1,960.25
3	Software Developer	77,200 - 131,000	1,050.91 - 1,783.28
4	Data Scientist	82,500 - 249,000	1,123.06 - 3,389.59
5	UX Designer	33,200 – 112,000	451.95 - 1,524.64
6	Project Manager	65,700 - 198,000	894.36 - 2,695.34
7	Sales Representative	29,200 - 101,000	397.49 - 1,374.90

Talent Sourcing Tips

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

Date	Name	Type
Date	Name	Type
1 Jan	New Year's Day	National holiday
2 Jan	New Year Holiday	National holiday
3 Jan	New Year Holiday	National holiday
4 Jan	New Year Holiday	National holiday
5 Jan	New Year Holiday	National holiday
6 Jan	New Year Holiday	National holiday
7 Jan	Orthodox Christmas Day	Religious Holiday (Orthodox)
8 Jan	New Year Holiday	National holiday
9 Jan	New Year Holiday	National holiday
23 Feb	Defender of the Fatherland Day	National holiday
28 Feb	Isra and Mi'raj	Religious Holiday (Muslim)
7 Mar	Public Holiday	National holiday
8 Mar	International Women's Day	National holiday
2 Apr	Ramadan starts	Religious Holiday (Muslim)
24 Apr	Orthodox Easter Day	Religious Holiday (Orthodox)
1 May	Spring and Labor Day	National holiday
2 May	Day off for Spring and Labor Day	National holiday
3 May	Eid al-Fitr (Tentative Date)	Religious Holiday (Muslim)
3 May	Public Holiday	National holiday
9 May	Victory Day	National holiday
10 May	Public Holiday	National holiday
12 Jun	Russia Day	National holiday
13 Jun	Day off for Russia Day	National holiday
10 Jul	Eid al-Adha (Tentative Date)	Religious Holiday (Muslim)
30 Jul	Muharram	Religious Holiday (Muslim)
8 Oct	The Prophet's Birthday (Tentative Date)	Religious Holiday (Muslim)
4 Nov	Unity Day	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.

Know More

Minimum Wage

Minimum wage in Russia varies per district. As per 2022, it ranges from 13,890.00 to 20,589.00

Know More

Overtime pay

Click on the link below to get more details about overtime pay in Russia:

Know More

Health Examination Clause

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

Talk to our experts

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

Termination Process

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.

Notice Period

The Notice Period for probationary employees is up to 14 days while regular employees have up to 4 weeks.

Severance Pay

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.

Know More

Streamline payroll and compliance for your international workforce

Get Started

Period of Overtime	Rate
First 2 hours	150%
Next 2 hours	200%

Talent Wiki - Russia

Supplementary Guide for Employment and Expansion in Russia