Russia PEO & Employer of Record
In Russia, WeHireGlobally is a global professional employment organization (PEO) that provides an organization or a company with an intensive and extensive global employer of record solutions for expansion into the Russian economy and/or hiring of talents in Russia.
Globalization alongside global freelancing has decreased the barriers limiting organizations to expand globally. The pre-existing standard demands the creation of local branches by companies on the Russian territory before they could hire talents or fully expand their organizations. WeHG as a Global PEO in Russia however counter this barrier has provided you with excellent PEO services that will avail you with the opportunity of carrying out your businesses in the Russian market within days, lesser cost, and enhanced time. WeHireGlobally will carefully and safely carry out your human resources responsibilities (like talent hiring, payroll administration, etc) and give you the maximum and optimum time and space to have full control and managerial coverage of your business. The workers will legally be employees of WeHireGlobally as well as they will be identified with our payroll and we will be charged with the responsibility of ensuring their 100% compliance, thus making globalization a safe and progressive option with the provided PEO services. However, the employees will be working for your company and you have the management and administrative right and control over them.
Quick facts and data in Russia
Country’s Capital: Moscow
Country’s population: 145,934,462 (millions)
Landmass size: 17,098,246 km²
Official currency: Russian Ruble (RUB)
Gross Domestic Product Capita: $10,500.00
Gross Domestic Product: $1,250 billion
Sources of Labour Legislations in Russia
- The 1993 Constitution
- Labour and Employment codes
- Federal Amendment laws on some legal acts in Russia
- Federal Trade Union laws, rights, and the guarantee of operations
- Federal legal obligations of non-Russian foreigners
- Federal Laws on the employment of the Russian populace
Labour and Employment Codes
Types of Contracts
Contracts are agreements between clients and employers that are dependent on the amount or type of work that the clients do. In Russia’s organizational environment, there might be several engagements, among which are; contracting, freelancing, private contractor, private consulting, employment, etc. These engagements are, however, bounded by contracts and terms of service to ensure the legality and avoid future problems. Contracts in written document form are by all means the most popular type of contract in Russia. This class of contract will have detailed data of occupations in the Russian economy.
In Russia, the legal obligations of local workers are very much similar to foreign experts’ obligations while executing globalization strategies. However, foreign experts working in Russia are bound by more special legal responsibilities and requirements as regards their enlisting. They are subject to Russian labor responsibilities after they have been vetted and their work licenses approved. PEO in Russia assists companies in making sure their employees undergo this process without stress and penalties.
Business Hours Duration
40 hours is the standard business hours an employee ought to work in a week in Russia.
Additional Business Hours Duration
Over time employees will be rewarded for the first two hours of work. They will also be paid one and a half times their regular hourly rate, plus two times more for any extra hours performed. The Russian Federation’s Constitution, on the other hand, prohibits workers from having their overtime eligibility withdrawn.
Under Russian law, the employee is entitled to three days of paid sick leave. This employee is also expected to take a 28-day paid leave/holiday (four weeks and a month). Following their six-month tenure of employment in Russia, the talents should be given this holiday. The annual holiday is another name for this occasion.
New moms in Russia are entitled to 70 days of unpaid leave before and after the birth of their child. Instead of the 70 days granted to single-child moms, women with two or more children are eligible for 84 days of leave. The moms have the option of getting their compensation at any point throughout this time. Salary payments, on the other hand, are made directly from the governmental social security fund.
Companies and employers in the Russian market can terminate their contracts with their employees only within the jurisdictions of the country’s laws. A worker’s contract can be terminated due to systematic negligence and incomplete or zero fulfillment of responsibilities, layoffs, and other notable reasons. To dismiss a staff, however, you are required to give them prior notice within the timeframe provided by the law, hence, you will be penalized for wrongful dismissal. Dismissal notice requirements for various categories include;
- Seasonal/probationary employees are given three days’ notice before being terminated.
- A month’s notice is given to management-level employees.
- All other types of employees will be given two weeks’ notice.
Employees’ earnings, such as salaries and other monetary rewards, are taxed under Russian labor regulations. As a result, taxable earnings are used to describe these profits. Employers must deduct 13 percent of an employee’s income tax from each monetary distribution and payment, according to the law. In addition, each employee’s compensation must be deducted for social contributions. Employers in Russia are also required to contribute 0.2 percent of their revenue to the governmental social security fund.
The basic rate of taxation in Russia include:
- 2.9 percent for Social Security and 5.1 percent for health insurance.
- 22 percent of the pension fund, plus 10% of any amount beyond a certain amount, which is evaluated on an annual basis.
Health Insurance Benefits
All Russian nationals are eligible to free medical services since state medical care is free.
Aside from the above-mentioned advantages in Russian labor contracts, the Russian market offers other benefits, one of which is the employer’s extra health insurance benefit to their employees. Health insurance, accident insurance, pension insurance, additional days off work, and yearly paid vacations are all essential and mandatory benefits that your employees must get. Other supplemental benefits that employees have access to include private medical life, retirement benefits, and accident insurance. PEO in Russia helps a company hire talents or execute a business in Russia to correctly disburse compensation and benefits to its employees.
There are two exclusive categories of health insurance in Russia, and these are compulsory health insurance and voluntary health insurance. The compulsory health insurance is free and readily available to all Russian nationals but this type of insurance has its barriers. Voluntary health insurance is insurance that is exclusively open to both Russian nationals and foreigners.
Individual health insurance policies can be purchased, or a firm might purchase insurance for its employees (which is done within the framework of corporate or collective insurance). Individual insurance is more expensive than the insurance purchased/acquired by a business for its employees.
In the Russian system, accident insurance is categorized as personal insurance. These forms of insurance can be acquired for a group of staff in a company or a particular individual.
In Russia currently, all employees participate in the compulsory pension insurance system (CPIS). The voluntary Pension provision is however a supplementary benefit that can serve as a surplus to the state pension.
Work visas are licenses that allow persons to live in a nation, such as Russia, and carry out commercial and organizational tasks for the period of their contract. These visas are exclusively provided to foreigners who are visiting Russia for business or organizational purposes, not for pleasure.
Requirements for getting work visas in Russia
- The first step in obtaining a Russia work visa is to gather the necessary papers, which includes a passport, a work invitation, and insurance. A thorough list of papers for a work visa to Russia should be discussed at the Russian consulate in the employee’s home country.
- At the consulate, pay the visa processing fees. The amount is set by the employee’s country of origin.
- Submit your application and supporting papers to the Russian consulate and wait for the visa to be processed, which can take up to 20 working days.
General holidays in Russia
- The new year day – Jan 1st
- Orthodox Christmas Day – Jan 7th
- Defender of the Fatherland Day – Feb 23rd
- International Women’s Day – Mar 8th
- Labour Day – May 1st
- The Victory Day – May 9th
- The National or Russia Day – Jun 12th
- Unity Day – Nov 4th
Top popular jobs found in Russia
As globalization is fast spreading, so also are technological advancements taking the front stages in the world. These two important concepts have increased amount of jobs in the world today. PEO services of organizations like WeHireGlobally are making globalization and talent hiring an easy task today with their excellent EOR solutions. However, just as some jobs are peculiar to a certain location due to the skills, industries, and requirements in those locations, so also is the case in Russia. WeHG PEO services in Russia will help you and your company navigate through selecting the best of all compliantly. The following are the most popular jobs in Russia:
- IT jobs
- Marketing roles
- Ship Captains
- Electrical Engineering
- Medicine and Surgery
- Insurance management and administration
Working with WeHireGlobally
WeHireGlobally is the best PEO with whom organizations may collaborate in Russia. WeHG will assist you in overcoming language obstacles in conducting business rather than relying on a Russian employment agency that may struggle to grasp your local tongue, PEO services, and worldwide expansion requirements. We provide you with the best employer of record solution available, allowing your company to easily handle human resources (HR) responsibilities while reducing costs and risks. All of your onboarding processes, payroll administration, tax filing, salary and benefits, and employee employment termination are covered by our PEO services.
In general, article 91 of the Labour Code provides for a maximum 40-hour working week.
- New Year’s Day.
- Orthodox Christmas.
- Defenders of the country Day.
- International Women’s Day.
- Labor Day holiday.
- Victory Day.
- National Day (Russian independence).
- Unity Day.
Taxable income includes salaries and other forms of remuneration (including insurance and other benefits) provided by an employer to its employees. The employer withholds a 13 per cent individual income tax from almost every payment made to an employee (certain exceptions apply).
Any payments that are made to Russian employees are subject to social contributions that must be paid by the employer. The basic rates and thresholds are:
• pension fund: 22 per cent, or 10 per cent for any amount exceeding a certain threshold that is reviewed annually;
• social security fund and medical insurance fund: 2.9 per cent and 5.1 per cent, respectively.
The employer is also required to make contributions to the social insuance fund in accordance with the law on mandatory social insurance for industrial accidents and occupational diseases. The amount to be paid as contributions depends on the types of operations the employer is engaged in and the risks involved. The contribution rate starts from 0.2 per cent.
A short-term work visa in Russia is one of numerous types of visas available, each with a varied period of stay. This visa is exclusively valid for business visits and permits employees to stay in Russia for an additional three (3) months without limitation. Before submitting applications or applying for a work visa, companies that employ foreign workers must establish that the individual has a valid work permit. Work visas and work permits are usually issued at the same time. Work visas are valid for three years and can be renewed for another three years.
Only firms that recruit or employ foreign expats have the authority to apply for work permits on their behalf, as well as to invite them for visa reasons. Such a firm must be either a Russian company or a foreign company with a registered presence in Russia, according to special regulations. WeHireGlobally is a global PEO in Russia that can assist companies with no ties to Russia in hiring and/or employing people, as well as filing for work permits and visas in a timely and compliant way.
1,240,000 Russian Rubles (RUB) which is equivalent to 17,769.20 USD (calculated with the exchange rate in October 2021) is the average annual salary in Russia. Salaries are disbursed in the country’s native currency which is known as the Russian Ruble