Hire in Russia

Employer of record in Russia

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Russia, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Russia ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Russia and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs. 

Hiring in Russia

The principal Russian statute governing employment is the Labor Code, which is supplemented by other labor-related laws and regulations.

Individual labor contracts are required by Russian labor law.

From January 1, 2022, employment-related documents, including employment contracts, may be created, signed, and stored in electronic form without the need to be duplicated on paper. Employment contracts in Russia. 

Employment contracts in Russia

As you look to hire employees in Russia, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

A standard workweek generally may not exceed 40 hours.

The Labor Code specifies standard workweeks under 40 hours for certain categories of employees:  

• 24 hours a week for employees under the age of 16 
• 35 hours a week for employees between 16 to 18 years of age 
• 35 hours a week for employees with disabilities 
• 36 hours a week for employees working in hazardous, unhealthy or dangerous conditions 

Such employees enjoy reduced working hours without their pay being reduced. When the employee is working part-time for other reasons, however, pay is calculated pro rata based on the actual working time.

According to the Russian Labor Code, Sunday is a common day off. Workers are entitled during each workday to a meal/rest break of not less than 30 minutes and not more than two hours. Night work is defined as that performed between 10 p.m. and 6 a.m.

Overtime cannot exceed four hours in two days or 120 hours in a year for each employee. Employees cannot generally be required to work on holidays, although they can agree to work.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:  

• Effective 2024, the monthly minimum wage is 19,242 rubles. 
• Night work is paid at an increased rate established by government regulations and varies depending on the industry. 
• Overtime pay is set by federal law as 1.5 times the regular rate of pay for the first two hours beyond normal working hours and two times the regular rate of pay for all working hours beyond that. 
• Employees who work on holidays get double pay or an additional day off. 

As your employer of record in Russia, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Russia’s labor code does not regulate the payment of bonuses.

Probationary period

The probationary period may not exceed three months for ordinary employees or six months for CEOs and chief accountants and their deputies.

Termination and severance

To terminate the contract of a union member for reasons of general workforce reductions or poor performance, the employer must obtain an opinion from the elected trade union body. The employer may terminate the contract within one month of obtaining this opinion. If the union disagrees with a dismissal, it must consult with the employer.

If the employee wants to dissolve the contract voluntarily, he or she must provide an employer with two weeks’ notice. 

Employee benefits and paid leave in Russia

When negotiating terms of an employment contract with a candidate in Russia, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Female employees are entitled to 70 days of paid prenatal leave, extended to 84 days if more than one child is expected, and 70 days of postnatal leave, extended to 86 days in cases of complications in childbirth or 110 days in the event of the birth of two or more children.

Allowances during pregnancy and maternity leave are paid by the Social Insurance Fund.

Vacation

Employees are entitled to 28 days of paid leave a year after six continuous months of work with a company. Employees can ask for compensation in lieu of any annual leave entitlement over 28 days. Unused vacation may be carried over to the following year.

When employees leave a job, they are entitled to be paid for unused leave.

Holidays

Employees are entitled to the following paid public holidays: 

• New Year’s Day 
• Orthodox Christmas Day 
• Defenders of the Fatherland Day 
• International Women’s Day 
• Spring and Labor Day 
• Victory Day 
• Russia Day 
• National Unity Day 

Holidays that fall on weekends are observed on the next business day. Workdays preceding a public holiday are reduced by one hour.

Sick leave

Medical care is free to employees through the social security system and is partially funded by employers.

Employees unable to work due to non-work-related illness or other injury are entitled to sick leave compensation until they can return to work. The employer pays a temporary disability allowance for the first three days and the Social Insurance Fund pays for the remainder of the time.

An employee's sick leave benefit is determined by their length of social security coverage: 

• The minimum wage for less than six months 
• 60% of average earnings for more than six months and up to five years 
• 80% of average earnings for five to eight years 
• 100% of average earnings for more than eight years 

These amounts are paid for the first 10 days of leave. Thereafter, payments are reduced by 50%.

Health coverage

All employees are covered by Russia’s pension system.

Effective January 1, 2019, a new law took effect that gradually raised the retirement age in Russia to 60 years for women and 65 years for men. The transition will last until 2028.

Additional benefits

In addition to healthcare benefits, employees in Russia are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Russia, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: January 09, 2024 

Employee onboarding with an employer of record in Russia

We write and validate all local employment contracts, streamlining the onboarding process for you and your Russia employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Russia, we will:   

• Schedule a welcome call to discuss HR and employment information for Russia, as well as answer any questions 
• Prepare a customized employment contract in English or other local language 
• Share the employment contract and benefits information with the new employee for signature and review 
• Gather tax and banking information from the employee to set up payroll 
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll 

The entire onboarding process for the employee is often completed in as little as two weeks. 

Partner with Safeguard Global as your Russia employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Russia. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today. 

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.