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The Russian economy ministry has revised an outlook for economic growth and oil prices in 2021, projecting a more robust national currency. After shrinking 3% in 2020 (its sharpest contraction since 2009), the Russian economy is on the mend thanks to a rebound of consumer demand and high oil prices – its key export. The Russian labor market is finally starting to look up. Since August 2020, the national unemployment rate has declined steadily, and employment levels are still below pre-pandemic numbers. However, these rates show that the country’s current situation isn’t as grim as it could be, considering they’re still trying to recover from the pandemic. In 2019, Russia ranked #28 in the World Bank’s Ease of Doing Business index (Sources: Reuters, World Bank, and TASS).
A trusted professional employment organization with in-depth knowledge of the market in Russia, XML International provides you with end-to-end personalised solutions to recruit and manage remote team members for your activities in Moscow or any other city in Russia, regardless of the size of your organisation or your industry.
Employees will be employed pursuant to local labour laws, and all required social security and taxation will be paid to the local Authorities.
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Moscow
Russian Ruble TUB
Russian
Minimum wage in Russia is 12,792 RUB per month.
Normal working hours in Russia must not exceed 40 hours per week.
Workers are entitled to at least 28 days of paid leave per year. An employee can start to use vacation days after six months of work in the company. By agreement between the employee and the employer, the annual paid leave may be divided into parts. However, at least one of the parts of this leave must be at least 14 calendar days.
Sick leave is paid directly from the Social Insurance Fund. The first 3 days of an employee’s sick leave are paid by the employer.
Female workers are entitled to 70 days of maternity leave before the birth and 70 days after the birth. The allowance is paid directly by the Social Insurance Fund and corresponds to 100% of the employee’s average salary. A maximum amount has been determined as 2,434.25 per day in 2021.
Fathers are entitled to paternity leave if the mother has not taken maternity leave. Additionally fathers may take up to 5 calendar days of paternity leave upon the birth of the child.
Russian legislation stipulates different notice periods for different grounds for termination of the employment contract at the employer’s initiative:
A probation period may be established as agreed by the parties for:
The standard VAT rate is 20%.
(Sources: Deloitte )
If you want to benefit from XML employment expertise in Russia, we invite you to fill the form below and we’ll get back to you shortly.
XML International, one of the best workforce solutions and employer of record services providers for Russia, supports the set-up and the management of your international workforce for all your activities in Russia. Our invaluable input consists of streamlining and handling for you the complete employment lifecycle of your teams in Russia. We give you all the keys to handle you staff in Moscow or any city in Russia. XML’s knowledge of labour Russian laws, tax and social security system, and employment regulations allows you to tackle the challenges of local compliance in Russia, navigate all the local complexities and avoid pitfalls.
Among our top priorities, compliance with Russian employment regulations and labour laws is number one. In addition to talent acquisition, recruitment services, and workforce management, we also ensure that our clients’ workforce management in Russia is aligned with Russian tax and social security rules and the latest immigration processes, including visas and work permits.
Here is the list of our core services supporting your activities in Russia.
• GEO Services for Russia (PEO and EOR)
• Contingent Workforce Services for Russia
Take advantage of the targeted outsourcing solutions proposed by XML International for your expansion in Russia or for your employees already based there. We offer a comprehensive series of bespoke and scalable outsourcing solutions specially designed for the Russian market.
They range from professional employer organization employment (PEO), employer of record, and contingent workforce employment services, to help you grow effortlessly and successfully in Russia without any complications. We can also help you source, recruit, and onboard new team members locally, even if you don’t have an office in Russia.
XML provides you with everything you need to start doing business in Russia or to optimize your business if you are already operating there, leading to significant bottom-line savings and getting your business activities up and running in just days. Get in touch with the XML team to learn how we can boost your activities in Russia in a cost-effective way.
Get started now and make the most of business in Russia today!
XML has expertise and resources to meet your organization’s workforce needs wherever, and in whichever field these might be.