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Expand your global workforce in Russia

Your guide to the employment landscape, working customs and local labor laws in Russia.

Capital

Moscow

Currency

Russian Ruble (RUB)

Languages

Russian

GDP per Capita

$12,574.93

Employer Tax

30.2% - 38.5%

Payroll Frequency

Bi-weekly

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

Top local universities in Russia

Russia Uni1

Moscow State University

RANKING

Local: 1

World : 225

Russia Uni2

National Research University Higher School of Economics

RANKING

Local: 2

World : 274

Russia Uni3

St. Petersburg State University

RANKING

Local: 3

World : 485

Uni 4 Russia

ITMO University

RANKING

Local: 4

World : 737

Uni 5 Russia

Ural Federal University

RANKING

Local: 5

World : 740

Top Local Job Boards:

Head Hunter, Superjob, Rabota, Trovit

Number of LinkedIn users:

7,280,000

Multiplier Recruitment Partner:

iXceed

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

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

 

Employ in Russia

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 2024

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

 

Date Holiday Name
1, 2, 3, 4, 5, 6 and 8 January New Year Holidays
7 January Christmas Day
23 February Defender of the Fatherland Day
8 March International Women’s Day
1 May Spring and Labour Holiday
9 May Victory Day
12 June Day of Russia
4 November National Unity Day
29, 30 April Additional Holidays
10 May Additional Holidays
30, 31 December Additional Holidays

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 28 days  Yes
Sick Leave 3 days Yes
Maternity Leave 20 weeks Yes

 

Leave Compliance

Payroll in

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Payroll cycle

Employees are usually paid bi-weekly.

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Minimum wage

Minimum wage in Russia varies per district. As of September 2022, it ranges from 15,279 RUB to 22,224 RUB.

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Overtime pay

Read more

How taxes work

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%.

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

Employee offboarding

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
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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.

Read more

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