Global payroll in Russia

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Rivermate's global payroll solution helps companies hire remote employees in Russia . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our global payroll solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Russia.

1. Grow your team in Russia with Rivermate as your global payroll provider

Payroll, benefits, taxes, and compliance can be difficult to manage in , particularly if you don't have established local relationships. You can hire employees in effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction to global payroll in Russia

If you are interested in hiring a remote team in Russia, or even just individual remote employees in Russia, then you have come to the right place!

Rivermate is an Employer of Record (EOR) that offers Russia payroll solutions. As a Russia payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Russia. We are confident Rivermate’s payroll solutions Russia will help you grow as a business—because now, you won’t have to worry about your payroll solutions Russia. We take care of everything payroll!

With Rivermate, you can run Russia payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.

Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!

3. How to set up global payroll in Russia

Once you've determined the best Russia payroll option for your company, you'll need to collect some information from employees in order to add them to your payroll. Begin by acquiring their personal identification number, tax deduction card, and emergency contact information. When an employee begins working and provides you with their tax deduction card, they become a part of the social security system and are eligible for benefits.

4. Taxation rules for global payroll in Russia

Russia has a social security fund that provides pensions, disability benefits, and survivor benefits. Employers must contribute 22% of payroll to social security, while employees are not required to contribute. Employers are responsible for corporate tax rates ranging from 15.5 to 20% in the country.

You must also ensure that your employees' income taxes are withheld. As of January 1, 2021, Russia implemented progressive tax rates of 13% on income up to RUB 5 million and 15% on income above that amount.

5. Payroll options for companies in Russia

Companies that wish to expand their operations globally have four different payroll options in Russia. These payroll options are:

1. Internal Payroll. This payroll option is applicable for already established companies in Russia. It includes devoting an entire Human Resources staff to running the company's payroll procedures.

2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.

Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.

3. Russia payroll outsourcing: Outsourcing your payroll to an Employer of Record in Russia, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!

6. Payroll compliance Russia

It is the obligation of the employer to ensure that all payroll-related transactions are properly documented and recorded. All salaries and compensation payments must adhere to the local minimum wage as well as other applicable laws and regulations.

Rivermate's payroll services in Russia can assist you in staying in compliance with the country's ever-changing payroll rules. We provide an all-inclusive solution that covers everything from compliance and reporting to salary payments.)

7. How to manage payroll in Russia

Companies that have a business presence in Russia have different ways of managing payroll. However, most of the options you have for running payroll in Russia are either expensive or require establishing a subsidiary in Russia. The cheapest, most efficient, and most reliable payroll processing system in Russia is by outsourcing payroll to Employers of Record (EOR) in Russia. Rivermate is one of those Employers of Record.

At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Russia. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Russia. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.

Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Russia.

8. Entitlement and termination terms in Russia

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.

9. Compensation in Russia

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

10. Working hours and overtime in Russia

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.

11. Employee benefits in Russia

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.

12. Why choose Rivermate as your global payroll provider in Russia

Establishing an entity in to hire a team takes time, money, and effort. The labor law in has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into 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 (EOR) solutions in 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 via our Employer of Record (EOR) / PEO solution.

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