Payroll and HR
Administration in Russia

Russia– Payroll and HR administration services

Global Expansion Plus provides payroll and HR administration services in Ukraine. Use our solutions to take care of your people in Russia. We make sure that your people are being taken care of and your entity is safe from violating local legislation. Russian labor relationship is governed by Labor Code.

Hiring and onboarding employees in Russia

Employment starts with onboarding. If you are employing a non-Russian citizen, you need to obtain a work permit. For more details on Visas and Work permit please refer to the corresponding section bellow. Hiring start with candidate search and interview process. Once job offer is submitted and agreed we start the onboarding process.

Onboarding Process

Employee onboarding is a regulated process. Labor code of Russia has a special closure that cover labor agreement, labor book, filling and maintaining data about the start, history and termination of an employment. Considering that Russian Federation have a socialistic past there are many regulations over the employment process, protecting rights of an employee. The listed bellow is the steps required for the onboarding:
  • Obtaining the documents required for employment;
  • Getting an employee informed about internal policies and practices;
  • Signing of labor agreement;
  • Issuing an internal order for the start of employment;
  • Filling a personal card №T-2;
  • Filling of personal folder;
  • Filling employment date into the labor book;
The mandatory documents required for the process are:
  • Passport or any other ID card;
  • Labor book;
  • State pension insurance certificate;
  • Military registration documents - for people eligible for military service;

Probation Period

The trial period under the Labor Code of the Russian Federation should not exceed:
  • 6 months for persons holding a managerial position, chief accountants and their deputies;
  • 3 months for all other categories of employees;
  • 2 weeks if an agreement is concluded for 2-6 months;
Probation period shorter that 2 months is prohibited.

Health and Safety

Directors are responsible for organization and control the health and safety in the workplace, that is, in simple words, they have all the responsibility for the life and safety of workers, and if an accident occurs, the managing director will be personally responsible. It is required to have a written and documented health and safety policies after company has over 50 employees.

Medical Checks

Generally Russian Labor legislation prohibits any discrimination based on a health or disability. The practice of medical checks are not common unless it is required by the law.

The Russian Labor law required certain categories of workers to go through mandatory preliminary medical examinations when concluding labor agreement. Preliminary medical examinations (examinations) upon admission to workplace are carried out in order to determine whether the health condition of the employee is suitable for a job. This is necessary to mitigate the risk of accidents and to prevent the spread of various diseases.

Work permits and Visas in Russia

Visa Types

Foreign citizens while entering Russian Federation require Visa. If there is two party agreement between countries, entering Russia may not require a visa. To apply for a visa, a foreign citizen must apply to the Russian consular post at the place of his permanent residence. Visas are issued based on the purpose of the trip and length of stay. There are three types of visas in Ukraine:
  • Business and Humanitarian Visas. Business and humanitarian visas can be single or double for up to three months and multiple - up to one year.
  • Touristic Visas. Tourist visas can be single or double valid for up to 30 days.
  • Private Visas. Private visas can be single or double for up to three months.
  • Study Visas. When applying for a student visa, the validity of the passport must be at least one and a half years.
  • Work visas. When applying for a work visa, the validity of the passport must be at least one and a half years.
  • Transit visas. A transit visa to a foreign citizen traveling through the territory of the Russian Federation to the destination state by air shall be issued for a period not exceeding 3 days. A foreign citizen making a direct flight by air over the territory of the Russian Federation does not require a transit visa.
Regardless of the category of visa, the applicant must provide the following documents to the Russian consular post:
  • International passport or any substituting document;
  • A completed visa application form. The visa application form is filled in electronically. it is allowed to fill out a visa application form in printed form;
  • One photo 3.5 x 4.5 cm;
  • Receipt from payment of the consular fee;
  • Documents depending on the category of visa. A visa is issued only after submitting a complete set of documents to the consular post. A set of documents for applying for a visa must be provided personally by the applicant or his legal representative.

Work Permit

Work permits in Russia are required for foreign citizens. This permission is issued within 30 days from the date of application and filling of the relevant form and the supplementing documents. If there is any clarification needed for the submitted documents, the application processing period may be extended.

Quotas

Quotas have been established for most positions, which makes it difficult to obtain work permits. At the same time, there are also unquoted occupations that are included in the special list, which is enforced by a government decree. It will be easier to accept a foreign employee to a post from such a list.

Permission to employ foreigner

To obtain permission to employ foreigner, the employer applies to the Ministry of Internal Affairs. Next, the employment service takes part, which decides on the need to attract foreign workers to the organization. The decision depends on whether it is possible to close the vacancies indicated by the employer by hiring workers from Russia. If this is not possible, then the company is issued a permit to employ foreigners.

Individual work permit

Simultaneously with the submission of documents at the stage described above, the employer must submit a request to the Ministry of Internal Affairs for an invitation to enter Russia. At the same time, it is important to attach copies of the obtained permits for employment, if any already exist – this will speed up the process of receiving an invitation.

Entry Visa

After a foreign worker receives an invitation to enter the Russian Federation, he turns to the Russian consulate in his country of permanent residence. A single-entry work visa is issued there. After the arrival of a foreigner, the employer is already extending the visa for the duration of the work permit.

Patent for work

A labor patent for work for foreign citizens is a permission to work in Russia for visa-free foreign citizens. In other words, a patent for work for migrants is a document necessary for every foreign citizen who arrived in Russia without a visa, who plans to legally carry out labor activities in the Russian Federation.

Work permit for Eurasian Economic Union

There is no need for any visas or work permits for citizens of Eurasian Economic Union (Belarus, Kazakhstan, Armenia and Kyrgyzstan). But, employees from these countries need to register at migration authorities every 90 days.

Working hours and leaves in Ukraine

Workhours and overtime

The work week in Russia is fixed at 40 hours by Russian Labor Code. Employer can have a four, five- and six-day work week, with ten, eight and six-hour workday accordingly. Any work over 40 hours per week is considered overtime. Overtime hours cannot exceed 120 hours per year and four hours per day in two days in a row. If employee has a flexible work schedule overtime is not tracked. Overtime is paid double of a normal work hour

Vacation leave

The annual vacation right is equal to 28 days. Vacation day are accrual monthly, but a new hired employee is eligible for his vacation after six months of employment. Vacation days can be split through the year but one vacation period shall not be smaller than 14 days. Unused vacation days are accumulated but cannot exceed 48 days. In such situation unused vacation in excess of the stipulated maximum will be paid to the employee.

Sick leave

The first three days of sick leave is paid by employer. The rest is paid by the Social Security Fund. The compensation obtained from the state is calculated by the formula, that takes into account average salary and work experience:
  • Up to 5 years - 60% to the average wages;
  • 5-8 years - 80% of average wages;
  • More than 8 years - 100% of average wages;

Maternity and paternity leave

70 days prior to the birth of a child, mother can get to a paid maternity leave. In addition, 70 days of maternity leave are also granted after the birth of a child. If the pregnancy and birth is complicated after birth maternity leave is extended to 86 days. Additional extension up to 110 days is granted in it was a twin baby.
Maternity leave is paid by the Social Security Fund in one settlement. The calculation in based on average salary of past two years.
After the maternity leave both parents can take unpaid leave for the childcare period, with position secured at the company. Patents can receive government support for one and a half year.

Russian Holidays in 2020

  • 01- 03 January 2020 - New Year
  • 06- 08 January 2020 - Orthodox Christmas
  • 23- 24 January 2020 - Defense and Father's Day
  • 08- 09 March 2020 - International Women's day
  • 01- 05 May 2020 - Labor Day
  • 09- 11 May 2020 - Victory Day
  • 04 November 2020 - Day of Unity
  • 29 November 2020 - Mother's Day

Remuneration & Benefits

Minimal wage salary is set one per year and equal to RUB 12,130 (USD 163,91) in gross. Net salary will be equal to RUB 10,553.1 (USD 142,61) and total cost of employment will be equal to UAH 15793,26 (USD 213,42).

Employee termination and severance

Notice Period

If employer wants to terminate employment, it needs to provide 2 months’ notice period. Notification need to have a legal base for the termination of the employment. The base for the employment termination could be one of the following:
  • Company liquidation;
  • Company reorganization;
  • Lack of qualification and knowledge of the employee;
  • Change of the company’s shareholders – applicable to top management;
  • Failure to perform duties;
  • One violation by the employee of responsibilities;

Severance payment

Severance payment usually equal to two months’ salary and unused vacation.

Payroll related taxes

Employer taxes

There is only one employee tax – Personal Income Tax of 13%, calculated by multiplying to gross salary. Foreign employees paying 30% of personal income tax.

Employee taxes

Employer is paying four mandatory security payments on top of the gross salary.

  • Pension Fund - 22%. Cap is set at RUB 1 150 00. If the amount of income is exceeded, the interest rate drops to 10%.
  • Medical Security Contribution – 5,1%. Cap is set at RUB 865 000. If the amount of income is exceeded, payments are not charged (0% rate)
  • Social Security Contribution – 2,9%
  • Accidents Security Find - from 0,2% or 8,5%
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