Hire and pay employees in
Russia, hassle-free
With Deel, your business can easily hire employees in Russia. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.
The average onboarding time frame in Russia is 5 days with Deel.
Currency
Russian Ruble (RUB)
Capital
Moscow
Official Language
Russian
Payroll Cycle
Bi-monthly
Onboard, pay and manage employees in Russia with Deel.
Usually, to hire in Russia, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Deel lets you hire employees in Russia quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
All the necessary benefits for Russia
built right in
Deel allows you to provide localized benefits for employees in Russia within minutes. All in one manageable online dashboard.
- Health Insurance
- Life Insurance
- Pension Insurance
- Public Health Insurance
- Social Security
- Work Accident Insurance
- Medical and Life insurance - Elbrus Insurance Brokers (optional)
Our quickstart guide to hiring in Russia
Navigate the tabs below to learn everything you need to know about hiring an employee in Russia
Minimum Wage Requirements
Category |
Condition |
2023 Minimum Wage |
2024 Minimum Wage |
Minimum wage in Moscow |
full-time employees |
RUB 24,801 per month |
RUB 24,801 per month |
Minimum wage in St. Petersburg |
full-time employees |
RUB 23,500 per month |
RUB 23,500 per month |
Minimum wage everywhere else in Russia |
full-time employees |
RUB 16,242 per month |
RUB 19,242 per month |
Individual Income Tax
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%
Payroll Cost
The employer cost is generally estimated at 7.80%-30.20% of the employee salary.
- Social Fund
- Employees in the IT sector: 7.6% capped at RUB 169,100 per year
- Employees not in the IT sector: 30% up to an annual maximum base of RUB 2,225,000, and 15.1% thereafter
- Accident Insurance - 0.20%
- 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.
These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.
Overtime Pay & Maximum Hours
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
From September 1, 2024, overtime rates will be calculated on the employee's standard compensation and incentive payments for the month when overtime was worked.
Maternity Leave
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
Paternity Leave
Parental Leave
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.
Sick Leave
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.
Termination Requirements
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
Notice Period
The notice period depends on the type of termination.
Reason of termination | Notice period |
---|---|
Probation period | 3 days |
Liquidation of the organization | 2 months |
Reduction of the number or staff of employees of the organization | 2 months |
Changes in company ownership | If the owner of the organization's property changes, the new owner has the right to terminate the employment contract with the head of the organization, his deputies and the chief accountant no later than 3 months from the date of his ownership right |
Severance for Employees
In Russia, severance pay will depend on the grounds of dismissal and duration of employment.
Grounds for dismissal | Severance pay |
---|---|
Liquidation of the company | If the duration of the employee's employment period exceeds one month, the employer is obliged to pay the average monthly earnings for the second month from the date of dismissal. In exceptional cases, the employer is obliged to pay the employee the average monthly earnings for the third month from the date of dismissal. |
Reduction of the number of employees or staff | If the duration of the employee's employment period exceeds one month, the employer is obliged to pay the average monthly earnings for the second month from the date of dismissal. In exceptional cases, the employer is obliged to pay the employee the average monthly earnings for the third month from the date of dismissal. |
Refusal to transfer to another position for medical reasons | Two weeks |
Conscription | Two weeks |
As a result of the reinstatement of an employee who previously performed work, by a court decision or labor inspection | Two weeks |
Refusal to transfer together with the organization to another locality | Two weeks |
Recognition by medical conclusion completely unable to perform the relevant duties | Two weeks |
Refusal to work under new conditions | Two weeks |
Violation of the rules for concluding an employment contract established by law, which occurred through no fault of the employee, if such violation excludes the transfer or continuation of activity | 1 Month |
Paid Time Off
Public Holidays
Russia celebrates 14 national holidays. National public holidays include:
- New Year (7 days)
- Orthodox Christmas
- Defender of Motherland Day
- International Women's Day
- Spring and Labour Day
- Victory Day
- Russia Day
- National Unity Day
Onboarding
Employment Contract Details
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
Probation Period
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.
Hiring in Russia, hassle-free
With Deel, your business can easily hire employees in Russia with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Russia and 150+ countries.
Starting at 599 USD
Management fee
7.8%
Estimate Employer Cost
*of employee salary
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