Guide to employment, payroll and benefits in

Russian Federation

Rivermate offers complete payroll, benefits and compliance services for

Russian Federation

01. Overview

Last updated: 

August 19, 2021

Currency
Russian Rouble
Capital
Moscow
Ease of doing business
78.2
Language
Russian
Population
145934462
GDP growth

02. Grow your team in

Russian Federation

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Russian Federation

, particularly if you don't have established local relationships. You can hire employees in

Russian Federation

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

The Russian Federation, also known as Russia, is a nation that spans Eastern Europe and North Asia. It is the world's largest nation, occupying more than 17 million square kilometers and accounting for nearly one-eighth of the world's populated land area. Russia spans eleven time zones and has sixteen independent nations on its boundaries. It is the most populated country in Europe and the ninth most populous country on the planet, with a population of 146.2 million people. The capital, Moscow, is Europe's largest city, while Saint Petersburg is the country's second-largest city and cultural center. Russians are the most populous Slavic and European nation; they speak Russian, which is the most widely spoken Slavic language and Europe's most widely spoken native language. Between the 3rd and 8th centuries AD, the East Slavs were a distinct ethnic group in Europe. In the 9th century, the medieval state of Rus' emerged. It adopted Orthodox Christianity from the Byzantine Empire in 988, kicking off the millennium-long synthesis of Byzantine and Slavic cultures that characterized Russian society. Rus' eventually disintegrated until it was reunified in the 15th century by the Grand Duchy of Moscow. By the 18th century, the country had grown to become the Russian Empire, the world's third-largest empire, thanks to invasion, annexation, and discovery. The Russian SFSR became the largest and most powerful constituent of the Soviet Union, the world's first constitutionally socialist state, following the Russian Revolution. During the Cold War, the Soviet Union emerged as a powerhouse and a rival to the United States after playing a critical role in the Allied victory in World War II. Some of the most important technological milestones of the twentieth century occurred during the Soviet period, including the first human-made satellite and the launch of the first human into space. The Russian SFSR was renamed the Russian Federation after the breakup of the Soviet Union in 1991. A new constitution was adopted in the wake of the constitutional crisis of 1993, and Russia has been ruled as a federal semi-presidential republic since then. Since 2000, Vladimir Putin has ruled Russia's political system, and his government has been accused of authoritarianism, human rights violations, and corruption. Russia is a major force with the ability to become a superpower. With a universal healthcare system and a free university education, it is ranked very high on the Human Development Index. Russia's economy is the world's eleventh largest in terms of nominal GDP and sixth largest in terms of purchasing power parity. It is a recognized nuclear-weapons state, with the world's largest nuclear weapons arsenal, the world's second-most effective military, and the world's fourth-highest military expenditure. Russia has the world's greatest mineral and energy wealth, and it is one of the world's top producers of oil and natural gas.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

Employers may fire an indefinite-term employee only for a legally recognized reason. Numerous legally acceptable reasons are not employee-specific, such as redundancy due to business reorganization or staff reductions. Others are individual to the employee, such as the employee becoming incapable of performing the job, frequent failure to meet job requirements, or a single act of serious misconduct, such as illegal absence without a good reason, being intoxicated at work, or stealing from the company.


Terminating an employee for poor performance or serious misconduct entails a lengthy procedure that includes recording the employee's misdeeds, issuing warnings, and notifying the employee in advance. In fact, rather than going through this process, many employers arrange for the employment contract to be terminated by mutual consent, which can occur at any time and, subject to certain constraints, on any conditions agreed upon by the employer and employee.


Fixed-term contracts are typically terminated when the stipulated circumstances are met (e.g., the conclusion of a project, the end of the season for seasonal labor, the return of a permanent employee temporarily replaced by the fixed-term contract employee), or when the contract's term expires. The employer must notify the employee at least three days prior to the contract expiring that it will not be extended or renewed. If the employer fails to do so and the employee continues to work, the contract is transformed immediately to an indefinite contract.


An employee on probation may be terminated with three days' written notice that includes the basis for the termination. Employees who desire to resign must offer two weeks written notice. Severance pay is also available in some other conditions, such as conscription or inability to work. In these instances, severance pay is typically two weeks' salary, though various other considerations can change the amount.

Notice period

A notice period is required only in limited circumstances.

Severance pay

The severance pay is only required in certain circumstances.

Probation period

In Russia, the maximum probation period is three months. Employers are still required to provide a reason for terminating an employee's employment if the contract is terminated during the probationary period.

07. Working hours

General

For most workers, the standard workweek is 40 hours over five days. For workers under the age of 16, the weekly limit is 24 hours. For workers between the ages of 16 and 18, the weekly limit is 35 hours, with certain categories of disabled employees. Workers who work in jobs that expose them to potential harm may not be able to work more than 36 hours in a seven-day period.

Overtime

Overtime is permitted for a maximum of four hours spread over two consecutive days, as well as for a total of 120 hours annually. To work additional hours, employees must provide written consent. To reward employees for working the first two hours of overtime, which is normally done for free, companies pay them 150% of their normal salary. In addition, overtime pay for additional hours is given at 200% of the standard rate. Workers must agree to work on weekends, public holidays, or days they normally don't work if requested to do so. If the employee is being paid 200% of their usual rate, they are being paid 200% of their usual rate. If they are being paid the usual rate and receive an unpaid day off, they are being paid the usual rate and receive an unpaid day off.


Employees under the age of 18 and pregnant women may not work overtime. Employees who have children under three years old and who also have disabled children under the age of eighteen are allowed to work overtime only if they give permission.


A premium payment is also given to employees who are allowed to work between the hours of 10 p.m. and 6 a.m., based on the details worked out in consultation with the employee's representative, and which factors in relevant union contract provisions and any applicable collective agreement.

08. Minimum wage

General

The government minimum wage is 12,792 RUB per month, although it may be higher in certain areas.

09. Employee benefits

General

Russia provides universal health care. Some big companies provide their workers private health insurance. All people in Russia have the right to free medical care.

In Russia, a company may offer supplemental health insurance to workers as a supplementary benefit.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Russian Federation

to hire a team takes time, money, and effort. The labor law in

Russian Federation

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Russian Federation

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Russian Federation

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Russian Federation

via our Employer of Record / PEO solution.

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