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Hiring in Belarus
Belarus, officially known as the Republic of Belarus, is a country in Eastern Europe. Minsk is the largest city and capital of Belarus. Its main trading partners are Russia and the European Union member countries. Belarus is a highly industrial country, whereby manufacturing sector primarily contributes to the GDP. Global PEO or Employer of Record (EOR) play a pivotal role in providing companies with services related to hiring employees, and ensuring compliance with Belarus’ legal and tax regulations. Employment regulations including probation period, holidays and termination are covered by the labor code. The Labor code stipulates that employees are entitled to a minimum of 24 business days off per year. Residents are taxed on their worldwide income; whereas non-residents are taxed on their Belarus source income only. As the employer of record (EOR), Global PEOs facilitate companies by ensuring compliance with Belarus’ Labor Code and Tax laws.
statutory labor requirements
Probation Period
- The maximum duration of the probationary period cannot exceed 3 months.
Annual Leave
- Employees in Belarus are entitled to a minimum of 24 business days off per year.
Public Holidays
- New Year's Day (1st January)
- Orthodox Christmas Day (7th January)
- International Women's Day (8th March)
- Radonitsa (28th April)
- Labor Day (1st May)
- Victory Day (9th May)
- Independence Day (3rd July)
- October Revolution Day (7th November)
- Christmas Day (25th December)
Maternity Leave
- The current maternity leave entitlement in Belarus is as follows:
- 126 days of paid maternity leave (this is increased to 140 days if there are medical complications or if more than one child is born at the same time).
- 3 years of unpaid maternity leave (the job position must be secured for the employee to resume her duties upon her return).
- If the employee has an additional child during the 3 years of unpaid maternity leave mentioned above, the maternity leave entitlement will start again.
Sick Leave
- The Social Security system in Belarus funds the payment of sickness benefits.
- Employees are entitled to 80% pay during the first 12 days of sickness and 100% pay for any days thereafter.
Work Hours
- The standard workweek in Belarus consists of 40 hours per week, 8 hours per day.
Overtime
- Overtime work is allowed only with consent from the employee and with the corresponding overtime pay or additional days off.
- Overtime work is limited to 180 hours per year, provided that it does not exceed 10 hours a week and must be paid at a rate of 100% over regular pay.
- The length of a working day including overtime hours cannot exceed 12 hours.
Notice Period
- Notice period must be 2 months unless otherwise stated in agreement.
Severance
- If an employee is dismissed, they are entitled to 3 months of severance pay.
13th / 14th Month Pay
- No
- There is no statutory requirement to pay the 13th or 14th month.
- There is no evidence that it is customary.
- The requirement is for holidays to be taken uninterrupted and can maximum be split in two with the employer's consent. (e.g. two weeks in summer, two weeks in winter)
income tax
- Individuals who are considered to be Belarus tax residents under applicable tax rules have PIT liability on their income sourced from Belarus and abroad (i.e. worldwide income).
- Those who are considered as non-tax residents of Belarus are taxed on income derived from Belarus sources
- Generally, any individual income derived from Belarus and foreign sources is taxed at a flat rate of 13%.
- Income of individuals in the form of compensation paid under employment agreements by legal entities or individual entrepreneurs registered in the South-East regions of the Mogilev region in the period from 1 July 2015 till 31 December 2020 and engaged in the manufacture of goods (or otherwise working or providing services) in such areas is taxed at the rate of 10%.
- Employment-related income derived by individuals from entities or entrepreneurs registered with High Technology Park is taxed at the rate of 9%.
- Personal income received from residents of the Great Stone industrial park under employment contracts before 1 January 2027 is subject to PIT at the rate of 9%.
- Personal income preferential tax rates of 6% and 0% are applicable to dividends from Belarusian companies if the profits were not distributed between the shareholders (the residents of Belarus) within the previous three or five calendars years, respectively.
- Income from prizes received from Belarusian gambling organizers is taxed at the rate of 4%.
- Income calculated based on the amount of excess of expenditures over declared income is taxed at the rate of 16%.
- Individual entrepreneurs applying the general taxation regime are taxed at a rate of 16%.
- Incomes of individual entrepreneurs operating in the territory of rural areas and small urban settlements are subject to PIT at the rate of 6%.
- Income received by an individual from renting out premises to other individuals is taxed at flat rates if such income does not exceed 7,003 Belarusian roubles (BYN) during a tax year.
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Personal Income Tax Rates |
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Individual income derived from Belarus and foreign sources |
Flat Rate of 13% |
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Income of individuals in the form of compensation paid under employment agreements by legal entities or individual entrepreneurs registered in the South-East regions of the Mogilev region |
10% |
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Employment-related income derived by individuals from entities or entrepreneurs registered with High Technology Park |
9% |
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Personal income received from residents of the Great Stone industrial park under employment contracts before 1 January 2027 |
9% |
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Dividends |
6%/0% |
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Income from prizes received from Belarusian gambling organizers |
4% |
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Income calculated based on the amount of excess of expenditures over declared income is taxed |
16% |
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Individual entrepreneurs applying the general taxation regime are taxed |
16% |
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Incomes of individual entrepreneurs operating in the territory of rural areas and small urban settlements |
6% |
deductible expenses
Personal Deductions
Education Expenses
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- Any individual may also apply PIT deductions for the actual incurred education-related expenses for an individual or for their close relatives, as well as amounts spent for repayment of loans borrowed for this purpose.
- Such expenses can be deducted if they are incurred by the individual when obtaining the first education (higher, specialized secondary, or professional) and if education is received in educational institutions of Belarus.
- Any unused PIT deduction for education can be carried forward to subsequent tax periods.
- PIT deductions for education are provided to the employed individual at the principal place of work at the end of a current tax year.
- For those individuals who do not have principal employment, tax deductions are provided by the tax authorities on the basis of a filed annual tax return.
Insurance premiums
-
- Any individual may also apply PIT deductions for the insurance premiums paid under the contracts of voluntary life and pension insurance concluded for at least three years, and voluntary medical expenses insurance in the total amount not exceeding BYN 3,622 per year.
- If such premiums are paid by an individual for the benefit of their close relatives, the deduction is also possible.
- Any unused PIT deduction for insurance can be carried forward to subsequent tax periods.
- PIT deductions for insurance are provided to the employed individual at the principal place of work at the end of a current tax year.
- For those individuals who do not have principal employment, tax deductions are provided by the tax authorities on the basis of a filed annual tax return.
Property-related expenses
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- Individuals, for PIT purposes, can deduct the following actually incurred expenses related to property:
- Cost of construction or purchase of an apartment or a house located in Belarus as well as repayment of loans provided by Belarusian companies/entrepreneurs and loans of Belarusian banks for this purpose.
- This deduction is provided only to a taxpayer included in the list of persons in need of improvement of living conditions.
- Expenses related to the purchase and/or disposal of property (excluding an exemption on capital gains from sale of securities).
- The list of deductible expenses is stipulated by the Tax Code.
- Construction expenses can be deducted for the employed individual by the principal employer during the current tax period based on supporting documents provided, or by the tax authorities based on a filed annual tax return.
Standard Deductions
- Monthly tax exempt amounts (TEAs) or standard tax deductions are applied to any income of Belarusian tax residents:
- TEA of BYN 117 per month is granted to individuals whose income does not exceed BYN 709 per month
- TEA of BYN 34 per child or other dependent per month, and TEA of BYN 65 per child or other dependent in case of having two and more children in the family
- TEA of BYN 165 is granted to some socially unprotected types of taxpayers (i.e. disabled individuals, veterans, victims of natural collapses or disasters).
- TEAs are applied to individuals by their principal employer.
- For those taxpayers who do not have principal employment, TEAs can be applied by an entity or an entrepreneur from which the income is received (tax agents) or by tax authorities based on the annual tax return.
- TEAs can only be applied once.
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Deductible Expenses |
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Personal Deductions: - |
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Education Expenses |
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Insurance Premium |
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Property-related Expenses |
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Standard Deductions |
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immigration
Work Permit
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- In general, foreign citizens who intend to work in Belarus should obtain a special work permit issued by regional Citizenship and Migration Departments of the Ministry of Internal Affairs.
- The validity period of a special work permit is one year, except for highly skilled professionals for whom a special work permit is issued for two years.
- A foreign highly skilled professional is a foreigner with high level of professional knowledge, skills and expertise confirmed by education certificate, and with work experience not less than five years and a contractual monthly salary that is more than the equivalent of BYN4,950.
- CIS nationals, with the exception of Armenian, Kazakh, Kyrgyzstan and Russian citizens employed by Belarusian legal entities, should also obtain a special work permit.
- A special work permit is not required for, among others, the following foreigners who want to work in Belarus:
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- Individuals who have permanent residence permits
- Individuals employed by diplomatic missions and consulates of foreign countries, representative offices and/or bodies of international or interstate organizations accredited in the Republic of Belarus
- Journalists from international media organizations accredited with the appropriate Belarusian authorities
- Certain other types of foreigners (for example, clergy invited for religious activities by religious associations that are statutorily registered in Belarus)
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- To obtain a special work permit for a foreigner, the following documents should be presented by the Belarusian employer of such foreigner to the appropriate regional Citizenship and Migration Department of the Ministry of Internal Affairs:
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- Application in the established form
- Copy of the foreigner’s passport or other equivalent document
- Education certificate and paper on work experience with respect to the profession of not less than five years and confirmed high level of professional knowledge, skills and expertise (for highly skilled professionals)
- Receipt for registration fee
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- The procedure for obtaining a special work permit takes up to 15 calendar days.
Residence Permits
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- Foreign citizens may stay in Belarus if they have any of the following three statuses:
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- Foreigners who are temporarily staying in Belarus
- Temporary residents (individuals who hold temporary residence permits)
- Permanent residents (individuals who hold permanent residence permits)
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- A foreigner’s temporary stay in Belarus should not exceed 90 days per calendar year from the date of the first entrance.
- Temporary resident status is the most common status for expatriates working in Belarus.
- A temporary residence permit is a document that allows a foreign national to reside in Belarus during its validity.
- A temporary residence permit is given for the period of up to one year.
- Its validity may be extended if a foreigner has a document confirming the legality of his or her staying in Belarus.
- To obtain a temporary residence permit, an applicant planning to work by hire in Belarus should submit the following main documents:
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- Application in the established form
- Passport or other equivalent document
- Document confirming the legality of his or her staying in Belarus
- Special permit to work by hire in Belarus or labor agreement (contract) with a Belarusian employer (if a special permit to work by hire is not required)
- Insurance policy or contract for medical insurance concluded with foreign insurance company
- Document confirming the possibility of staying at the place of temporary residence (usually a long-term rent contract)
- Document confirming the payment of state duty
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- A permanent residence permit may be issued to the following foreigners:
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- Close relatives of Belarusian citizens permanently residing in Belarus
- Persons who are granted refugee status or asylum in Belarus
- Foreigners who have the right to family reunification
- Foreigners who have lived legally in Belarus for a continuous period of seven years after obtaining the temporary residence permit
- Foreigners who may become Belarusian citizens through the mechanism of registration
- Foreigners who were previously nationals of Belarus
- Workers and professionals who are needed by Belarusian organizations
- Foreigners who have extraordinary capabilities and talent, have outstanding merits for Belarus or have high achievements in science, technology, culture or sports
- Foreign investors who have made investments in the amount not less than EUR150,000 in investment activities in Belarus
- Ethnic Belarusians or their blood relatives in the direct line of descent, including children, grandchildren and great-grandchildren who were born outside the current territory of Belarus
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- The Belarusian government may provide other grounds for the obtaining of a permanent residence permit under an agreement with the President of the Republic of Belarus.
- The issuance of a permanent residence permit is a subject to an immigration quota that may be established by the Belarusian government with respect to each foreign country.
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Type of Visa/ Permit |
Documentation |
Validity |
Eligibility |
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Work Permit |
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1 year 2 years (for highly skilled professionals) |
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Temporary Residence Permit |
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1 year (can be extended) |
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Permanent Residence Permit |
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2 years (can be extended for 5 years) |
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value added tax
- In general, local supplies of goods, works, and services made by a taxpayer performing its economic activities in Belarus, as well as the importation of goods, are subject to VAT.
- The standard VAT rate is 20%, whereas the preferential rate is 10%.
- All telecommunication services are subject to VAT at the rate of 25%.
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VAT |
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Higher Rate |
25% |
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Standard Rate |
13% |
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Preferential Rate |
10% |
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Zero Rate |
0% |
withholding tax
Dividends
- Dividends paid to a nonresident company from Belarus sources are subject to a 12% withholding tax, unless the rate is reduced under a tax treaty.
- A 6% rate is applied to dividends if no profits were distributed within the three immediately preceding years to Belarusian residents, and a 0% rate is applied to dividends if no profits were distributed within the five immediately preceding years to Belarusian residents.
Interest
- Interest paid to a nonresident company is subject to a 10% withholding tax, unless the rate is reduced under a tax treaty
- No interest withholding tax is imposed on resident companies
Royalties
- Royalties paid to a nonresident company are subject to a 15% withholding tax, unless the rate is reduced under a tax treaty.
- No royalties withholding tax is imposed on resident companies
Fees for Technical Services
- Certain types of service fees paid to a nonresident company are subject to a 15% withholding tax, unless the rate is reduced or exempt under a tax treaty
- No withholding tax is imposed on services fees paid to resident companies
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Type of Payment |
Residents |
Nonresidents |
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Company |
Individual |
Company |
Individual |
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Dividends |
0%/6%/12% |
0%/6%/9%*/13% |
12%/5%* |
5%/25% |
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Interest |
N/A |
13% |
10%/0%** |
10%/20%/25% |
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Royalties |
N/A |
13% |
15%/0%** |
5%/20%/25% |
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Technical Service Fee |
N/A |
13% |
15%/0%** |
20%/25% |
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*If dividend is paid by HTP president **If interest /royalties/ service fees are paid by the HTP president |
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termination
An employment contract can be terminated under the following circumstances:
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- Upon mutual agreement of both parties.
- Expiration of a labor contract (in the case of a fixed term contract).
- If initiated by either the employee or the employer.
- If the employee agrees to be transferred to another employer or gets transferred to an elective position.
- If the employee disagrees with moving to another location required by the employer or disagrees with the new labor conditions of their employment.
- If the contract is terminated after a probationary period.
- Due to circumstances beyond one’s reasonable control (force majeure) and some of the ground.
- If there is not a contract between the employee and employer providing for a notice period, then a notice period of approximately 2 months will apply.
- If the termination is initiated by the employee, then the employee must give at least a 1-month notice.
- If an employee is dismissed, they are entitled to 3 months of severance pay.
statutory benefits
- These are mandatory benefits as postulated by law
- These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, and severance pay.
- Statutory benefits also include social security benefits
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Statutory Benefits |
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Probationary Period |
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Annual Leave |
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Public Holidays |
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Maternity Leave |
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Sick Leave |
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Overtime Pay |
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Severance Pay |
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Social Security Benefits |
payments and invoicing
- The tax year in Belarus is the calendar year. Employers are required to withhold, calculate, and pay to the state the relevant tax on compensation paid to employees.
- The tax is transferred to the budget on the date on which the salary is paid.
- Any non-employment income received in a tax year by a tax resident individual must be declared in the individual’s annual tax return.
- The annual tax return must be submitted to the tax office by 31 March of the year following the tax year.
- The taxpayer must pay personal income tax due on income derived in the tax year by 1 June of the year following the tax year.
- Attorneys, notaries and individual entrepreneurs using the general taxation regime compute tax quarterly on a cumulative basis and file tax returns by the 20th day of the month following the reporting quarter.
- The tax for the reporting quarter must be paid by the 22nd day of the month following the end of the reporting quarter.
- Entrepreneurs who use the simplified taxation regime and who pay VAT on a quarterly basis or do not pay VAT must file tax returns quarterly by the 20th day of the month following the end of the reporting quarter.
- Entrepreneurs who pay VAT on a monthly basis must file tax returns monthly by the 20th day of the month following the reporting month.
- Tax must be paid by the 22nd day of the month following the end of the reporting month.
- Entrepreneurs whose business activities are subject to the single tax must pay the tax on a monthly basis by the first day of each calendar month and file a tax return on the first day of each calendar quarter.
ease of doing business
- The ease of doing business index is an index created by Simeon Djankov, an economist at the Central and Eastern Europe sector of the World Bank Group.
- Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.
- According to the World Bank Belarus ranked 49th in the World in 2019 in terms of ease of doing business.
employee accruals
| Christmas Bonus% | 0% |
| Christmas Bonus Over Vacations % | 0% |
| Severance per Year % | Employees are entitled to severance pay equal to 2 weeks of pay (2.74% of annual salary) |
| Vacations % | Employees in Belarus are entitled to a minimum of 24 business days off per year (6.59% of annual salary) |
| Notice % | Employees are entitled to 30 days of notice period for one year of service or more (8.24%) |
| Christmas Bonus Over Notifications% | 0% |
| Vacations Plus% | Employees are paid their holiday wages 2 days before their holidays and they are equivalent to 1 months salary. 0% |
| Total percentage of Salary (yearly) | The total employment accruals as a percentage of salary per anum are equal to 17.66% |
employer accruals
Additional information (Country Accruals)
| Social Insurance |
28.00% |
| Health Insurance Contribution |
6.00% |
| Vacations |
7.95% |
| Description |
Generally, all payments to employees are subject to SICs at the total rate of 35%. SICs at a rate of 34% (28% pension insurance and 6% social insurance) are paid by an employer and deducted for corporate income tax (CIT) purposes. SICs at a rate of 1% are withheld from an employee's salary and paid by the employer. |
Employer Accruals Additional information
| Employment Accruals | ||
| Annual Leave | Employees in Belarus are entitled to a minimum of 24 business days off per year. | This equals 6.6% (24/365 days) of annual income |
| Maternity Leave | The current maternity leave entitlement in Belarus is as follows: • 126 days of paid maternity leave (this is increased to 140 days if there are medical complications or if more than one child is born at the same time) . |
This equals 34.5% (126/365 days) of annual income |
| Sick Leave | Employees are entitled to 80% pay during the first 12 days of sickness and 100% pay for any days thereafter. | This equals 80% of 3.28% (12/365 days) of annual income. |
| Overtime | Overtime work is limited to 180 hours per year, provided that it does not exceed 10 hours a week and must be paid at a rate of 100% over regular pay. | Normal hourly rate is around 18.312 BYN. Overtime is paid at an additional 18.312 BYN. |
| Severance | If an employee is dismissed, they are entitled to 3 months of severance pay. | This equals 25% (3/12 months) of annual income |
| Social Security | Employers must make contributions of 34.6% | This equals 34.6% of annual income |
