Table of Contents

Russia

Table of Contents

Currency

Russian Ruble (RUB)

Payroll Frequency

Bi-weekly

Employer Taxes

30.2% - 38.5%

About Russia

In land area, Russia is the largest country in the world, covering an area of 17,125,200 square kilometers (6,612,100 sq mi), or approximately one-eighth of the inhabited land area on earth. By the 18th century, Russia had greatly expanded through conquest, annexation, and exploration to become the Russian Empire, the third-largest empire in history, stretching from Norway on the west to Canada on the east. After WWII, Russia constituted the largest part of the Soviet Union, the world’s first constitutionally socialist state and one of the two great powers during the Cold War.

Most of the Russian territory consists of vast stretches of plains that are predominantly steppe to the south, with dense forests to the north, and tundra along the northern coast. It also has an extensive coastline along the Arctic and Pacific Oceans, as well as along the Baltic Sea, Sea of Azov, Black Sea and Caspian Sea. Russia has many rivers and lakes, which contain approximately one-quarter of the world’s liquid fresh water.

Russia is Europe’s most populous country, with the majority being ethnic Russians, who speak the Russian language, followed by Tatar and Ukrainian. Russian is the second-most used language on the Internet after English, one of two official languages aboard the International Space Station and is one of the six official languages of the UN.

Employment Relationship

• Permanent Employment

According to Russia's Labor Code, employment contracts concluded for an indefinite term are considered to be permanent. If the employment contract does not specify a duration, it is deemed to be concluded for an indefinite period. In cases where neither party requests termination of a fixed-term employment contract due to its expiry and the employee continues working after the contract term's expiry, the employment contract will be deemed to be concluded for an indefinite period.

• Fixed-Term or Specific-Purpose Contracts

Russia's Labor Code limits the duration of fixed-term contracts to five years. Fixed-term employment contracts can be concluded in the following circumstances: Execution of duties performed by an employee who is on a leave of absence Performance of temporary work up to two months Performance of seasonal work For persons who are sent to work abroad Performance of jobs that are beyond the employer's ordinary work  Performance of particular work, even where a specific date for its completion cannot be determined Carrying out work related to the professional training of an employee When employers are small business organizations with up to 40 employees (up to 25 employees in trading and consumer services organizations) Hiring retired employees For persons employed by organizations located in extreme northern areas Hiring for emergency jobs to prevent catastrophes, disasters, accidents, epidemics, etc. For persons undergoing day-time studies For employees working in part-time jobs.

• Temporary Employment Contratcs

Russia's Labor Code provides that an employee can be engaged on a fixed-term contract in temporary work for up to two months. Employers may also hire employees for seasonal work when, due to natural conditions, the work can only be performed during a certain period. Temporary employees can also be hired for a temporary extension of the employer's production capacity. Finally, employers may hire temporary employees to replace a temporarily absent employee. A fixed-term labor agreement is terminated with the expiration of its validity term. An employee must be warned about the agreement's expiration in written form not later than three days before dismissal. 

Probationary Period

Russia's Labor Code provides that, with consent from both parties, the employment contract can include a clause for a probationary period to test an employee's fitness for the job. The probationary period condition must be stated in the employment agreement. If no probationary period condition is stated in an employment agreement, an employee is accepted without such a trial period. The maximum probationary term is three months for full-time employees or six months for the heads and deputy heads of organizations, chief accountants and deputy chief accountants, the leaders of branches, representative offices, or other detached structural units of organizations. When a labor contract is concluded for a term of two to six months, the probationary term must not exceed two months. If their performance is not satisfactory, the employer has the right to dismiss the employee during the probationary period by giving advance notice of three days.

Working Hours

Russia's Labor Code states that the standard duration of working time cannot exceed 40 hours in a week. The employer is responsible for keeping a record of the actual working time of each employee. Employees who work longer than 40 hours per week are eligible for overtime. The law establishes reduced working hours as follows: For employees under 16 years of age, the working time is up to 24 hours a week. For employees between the ages of 16 to 18, the working time is up to 35 hours a week. For disabled employees, the working time is up to 35 hours a week. For employees who work in harmful and/or hazardous conditions, the working time is up to 36 hours a week. The length of working time on days preceding non-working holidays is reduced by one hour.

Holidays / PTO

• Statutory Holidays

New Year Holidays – January 1 to January 5Eastern Christmas Day – January 7Day of the Defender of the Fatherland – February 23International Women’s Day – March 8Spring and Labor Day – May 1Victory Day – May 9Day of Russia – June 12Day of National Unity – November 4

• Paid Annual Leave

In Russia, employees are entitled to an annual paid leave of at least 28 calendar days. During the first year of service, the employee acquires the right to go on leave after six months of continuous service with the organization. Before the expiration of the six month period of continuous service, the paid leave must be granted upon application to the following categories of persons: Women before the maternity leave or right after it Employees under 18 years of age Employees who adopted a child under three months of age A husband may be given his annual paid leave by request during his wife's maternity leave. The employee should be informed of the time of the leave no later than two weeks before its start. Unused leave is eligible for rollover into the following year. Non-working holidays during the leave period are not included in the number of calendar days and are not paid. Additional annual paid leave must be granted to employees involved in work with harmful and dangerous conditions and employees working in the Far North regions. However, Russia's Labor Code does not specify how much additional leave must be granted.  

• Sick Leave

In Russia, employees who become ill or suffer an injury may take sick leave from work. Sick leave is also extended to employees taking care of a sick relative. While taking sick leave, the employee is entitled to a temporary disability allowance that replaces between 60% and 100% of their average earnings (up to a maximum of RUB 2,572.60 (Russian rubles) daily in 2022) as follows: An insured person with an insurance record of eight years or more – 100% of the average earnings An insured person with an insurance record of five to eight years – 80% of the average earnings An insured person with an insurance record of up to five years – 60% of the average earnings. Temporary disability allowance is paid by the Social Security Fund of the Russian Federation for the entire duration of the temporary incapacity.

• Maternity Leave

Russia's Labor Code grants a total of 140 days of paid maternity leave to pregnant women: 70 days before the delivery and 70 days after the delivery. In the case of multiple births, the leave is extended to 84 days before and after delivery. In the case of abnormal birth, it is extended to 86 days before and after delivery. Finally, in the case of the birth of 2 or more children, it is extended to 110 days before and after delivery. The employee is entitled to receive 100% of their earnings (up to a statutory maximum) during maternity leave, paid by the Social Security Fund of the Russian Federation. This benefit is paid up to a maximum of RUB 383,179 (Russian ruble). The maximum maternity allowance is RUB 23,011 in 2023 (for mothers who gave birth to 1 child and did not have an abnormal birth). Pregnant employees may not be employed in overtime or night work. They may also not work on weekends or public holidays. Finally, they may not travel for business. The law also prohibits the dismissal of pregnant employees unless the organization is being liquidated.

• Paternity Leave

Russia's Labor Code grants fathers an unpaid leave of 5 days upon their child's birth. In addition, fathers are eligible to take child-rearing leave. However, child-rearing leave may only be used by one of the child's parents (or the child's primary caregiver). The leave may last for a maximum of 36 months, the first 18 of which are paid at 40% of the parent's salary (up to a cap). The benefit is paid by the Russian Social Security Fund. The remaining 18 months are unpaid.

Termination of Employment

• Notice Period

According to Russia's Labor Code, an employee can terminate an employment contract by providing written notice of at least two weeks to the employer. A seasonal employee must provide three days' notice to the employer if they terminate their employment before the end of the season. An employer of seasonal employees must provide seven days' written notice to the employee if they terminate an employee before the end of the season. Employers and employees may mutually agree to terminate an employment contract before the expiration of the notice period. Notice periods are generally stipulated in individual employment contracts or collective agreements. An employer must give two months' notice to employees if the organization is being dissolved. Employers are not required to provide notice if an employee is terminated for cause.

• Severance Benefits

According to Russia's Labor Code, employees whose contract is terminated due to the organization's liquidation or due to redundancy are entitled to severance pay equal to their average monthly earnings for up to three months. If the employment contract is terminated for the following reasons, the severance pay is equivalent to two weeks' salary: The employee refused to be transferred to another job due to a medical condition. The employee is being drafted to undergo military service or alternative civil service in place thereof. The employee refused to be transferred to a job in another area together with the employer. The employee is declared as entirely incapable of working by a medical practitioner. The seasonal employee's contract is canceled due to the organization's liquidation or a reduction in the number of employees. Individual or collective employment agreements can vary the amount and length of severance pay given to the employee.