Employer of Record and Payroll Services in Russia
|Cserve-owned legal entity
- Employer of record
- Contractor management
- Global payroll
- In-country payroll
Cserve offers complete payroll, PEO and HR services in Russia
Russie has a balanced budget policy and has one of the lowest public debt in Europe and the world. The government has adopted 42 state programs across many sectors in an effort to support large infrastructure projects. Many are mega projects which drive the economy, stimulate markets and generate revenue. Russia holds 11th place globally in terms of nominal GDP
Doing Business in RussiaTypically, investors face challenges in choosing among the different legal structures for their business in Russia. Foreign companies will often use LLCs to conduct wholly-owned businesses in Russia. Under Russian law, certain types of activities may require a license or type of permission. However, at present time, travel is not recommended at all due to the security environment and the impact of military conflict with Ukraine. Download PDF
Setting up a new business or expanding an existing one in Russia is straightforward. Choose how your company operates from a range of entity types that suit your individual circumstance.
Banking Hours: 9:00 am to 5:00 pm from Monday to Friday.
The standard working week is from Monday to Friday from 9:00 am – 6:00 pm.
The labor relationship between the employer and employee is governed by the Constitution, the Labor Code, federal laws and other statutory laws. Parties to a labor relationship are not able to contract out of requirements that may be imposed by Russian labor law.
|Complete range of mining and extractive industries producing coal, oil, gas, chemicals
|Dates & Numbers
|Official State Name
|the Russian Federation
|Russian Ruble (RUB)
|International Dialing Code
An employee may be engaged for night work if the working conditions require it but it does require the consent of the employee. If this occurs, the rate of pay must be at least 20 percent greater than the normal hourly rate.
Tax and Social Security
Taxpayers are subject to Russian income tax as either tax residents or non-residents. There is an old-age insurance pension under a statutory compulsory pension insurance scheme. This social pension is not payable abroad.
Tax residents are taxed on worldwide income. Non residents are taxed on their Russia-sourced income.
|Corporate Income Tax
|Personal Income Tax
Retirement is not necessary. Working pensioners are not required to complete an income test. Pension benefits are financed out of contributions made to the pension insurance scheme.
|Social Security Rate
|Social Security Rate for Employers
|Social Security Rate for Employees
There are new regulations which came into effect in January 2021 which amend applicable legislation significantly, introducing different types of remote and hybrid working arrangements. This allows employers far more flexibility.
An employment agreement is typically set out in writing and sets out the basic terms such as duration of employment, employment duties, working hours and more. Should an employee begin working before the written agreement is finalized, the agreement is taken to be concluded.
There are new requirements for foreign nationals working in Russia, that is, an obligation to complete fingerprint and photo registration as well as a medical examination. This must be done within 30 days of entry into the country. Failure to do so will mean the duration of the temporary stay will be reduced.
In respect of maternity leave, employees are not entitled to pay from their employer but receive a state benefit from the Social Insurance Fund. The employer pays the benefit and reclaims the sum from the Fund.
Employment may be terminated only on grounds that are provided by law. This is set out by the Labor Code. In general, state bodies are not required to be notified of such a dismissal.
Foreign nationals are required to have a work permit. The exceptions to the rule is certain CIS nationals and other foreign nationals who have residency permits. Work permits are not always required for employees of suppliers or certain manufacturers. The procedure for a work permit is typically lengthy and consists of a few stages and may take up to four months in total. Permits are issued for a period of one year.
An individual work visa must be obtained. Separately, companies are required to report the number of foreign employees they believe they will engage in the coming year. There are also available work permits for HQS (highly qualified specialists), which is supported by a simplified procedure.
|Work Permit validity
A color passport photo
A passport or other valid identification document
Copies of relevant certificates of the individual’s qualification
A medical certificate that indicates that the individual suffers no disease
A receipt for the payment of all relevant fees
Compliant, reliable, error-free and touchless payroll in Russia
Build the best team and hire top talent compliantly in Russia. Get in touch with Russia payroll outsourcing & PEO specialists for a free consultation!
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