In Russia, labor law mandates a comprehensive set of benefits that employers must provide to their employees. These benefits ensure a baseline level of security and well-being for workers.

Paid Time Off

• Annual Leave: All employees are entitled to a minimum of 28 calendar days (20 working days) of paid annual leave per year. At least one uninterrupted period of leave must be at least 14 days, with the remaining days being taken as single days or combined. Certain professions, such as teachers and those working in hazardous conditions, may be entitled to additional leave days.
• Public Holidays: Employees are entitled to paid leave on all official Russian national holidays, which vary from year to year.
• Sick Leave: Employers must provide paid sick leave to employees who are unable to work due to illness or injury. The duration and amount of pay for sick leave depend on the employee's condition and length of service.
• Maternity Leave: Female employees are entitled to 140 days of paid maternity leave, both before and after childbirth. They are also eligible for a one-time childbirth allowance and childcare allowance.
• Parental Leave: Fathers are entitled to ten days of paid paternity leave upon the birth of a child. Additionally, either parent (or another authorized caregiver) can take childcare leave for up to three years after childbirth and receive a state benefit.
• Other Leaves: Employees may also be entitled to additional paid leave for other reasons, such as study leave, military leave, and bereavement leave.

Social Security Benefits

Russian law mandates a comprehensive social security system that provides benefits to employees in various situations. Employers are required to contribute to social security funds on behalf of their employees. These benefits include:

• Pension: Employees accrue pension benefits based on their earnings and contributions to the social security system.
• Disability Benefits: Employees who become disabled due to illness or injury may be eligible for disability benefits.
• Unemployment Benefits: Unemployed workers may be eligible for unemployment benefits for a limited period.

In Russia, many companies offer additional perks to attract and retain top talent, beyond the mandatory benefits.

Health and Wellness

• Private Medical Insurance: Private insurance plans offer access to better quality hospitals, shorter wait times, and a wider range of specialists.

• Health and Wellness Programs: Companies may offer on-site fitness facilities, gym memberships, or subsidize employee participation in wellness programs to promote a healthy lifestyle.

Financial Security

• Life Insurance: Employers might provide group life insurance plans to offer financial security to the employee's family in case of death.

• Disability Insurance: This benefit can provide financial support to employees who are unable to work due to illness or injury.

Work-Life Balance

• Flexible Work Arrangements: Modern companies may offer flexible work schedules, remote work options, or compressed workweeks to enhance work-life balance for employees.

• Paid Time Off: Employers might offer additional paid time off beyond the mandatory minimum vacation days.

• Childcare Assistance: Companies might provide on-site childcare facilities, childcare subsidies, or partner with childcare providers to support employees with young children.

Other Benefits

• Company Car or Car Allowance: Some employers might offer company cars or car allowances to facilitate employee transportation.

• Educational Assistance: Companies may offer financial aid or tuition reimbursement programs to help employees pursue further education.

• Mobile Phone and Wi-Fi Allowance: To stay connected for work purposes, some companies might provide employees with mobile phone plans or Wi-Fi stipends.

In Russia, health insurance operates on a dual system: mandatory state-funded insurance and voluntary private insurance.

Mandatory State-Funded Health Insurance (OMI)

All Russian citizens and legal foreign residents working in Russia are entitled to free basic healthcare coverage through the Obligatory Medical Insurance (OMI) program. Employers are responsible for registering their employees with the OMI system and contribute 2-3% of employee salaries towards the national healthcare fund. OMI provides access to a network of state-run hospitals, clinics, and specialists. However, wait times can be long, and access to advanced treatments might be limited.

Voluntary Private Health Insurance (VHI)

Private health insurance (VHI) is not mandatory but is commonly offered by employers as a benefit or purchased individually for additional coverage. VHI plans offer advantages over OMI, including shorter wait times for appointments and procedures, access to a wider range of specialists and hospitals, including private facilities, and coverage for services not included in OMI, such as dental care or vision care.

Employers' Role in VHI

While not mandatory, many employers in Russia offer VHI as a part of their employee benefits package, especially for attracting and retaining skilled workers. Some employers might contribute partially or fully to the cost of VHI premiums for their employees.

Foreign Nationals and VHI

Highly Qualified Specialists (HQS) with temporary work permits in Russia are required by law to have private medical insurance valid in Russia.

Russia operates a two-pillar pension system, which combines a state-run pension with options for additional savings.

State Pension

The state-run pension is the primary source of retirement income for most Russians. It is funded through mandatory contributions from employers and individual contributions. The eligibility age for the state pension is gradually increasing: 61.5 years for men and 56.5 years for women in 2020, reaching 65 and 60 by 2028, respectively. The amount of the state pension depends on factors like salary history, length of contributions, and the number of pension points earned.

Funded Pension

Introduced in 2002, the funded pension system allows for voluntary contributions into private investment accounts. This system was mandatory for some younger workers but is no longer the case for those born after 1966. Individuals can choose a state-managed or private investment fund for their contributions. The funds are invested in the financial markets, with potential for higher returns compared to the state pension but also carrying investment risk.

Employer-Sponsored Pension Plans

Some employers in Russia offer additional voluntary pension plans to supplement the state pension. These plans can be funded through contributions from both employers and employees. The specific benefits and contribution structures can vary depending on the company plan.

Choosing a Retirement Plan

The most suitable retirement plan for an employee depends on their individual circumstances, risk tolerance, and desired retirement lifestyle. It's important to consider factors like expected retirement age, desired retirement income, risk tolerance, and availability of employer-sponsored plans.