Hire Employees in Russia

Two routes exist. Registering a Russian entity gives you direct employment, followed by registration with the Federal Tax Service and setup of the unified tax account.

An Employer of Record removes that setup. The EOR is the legal employer, runs twice-monthly payroll, tracks the cumulative contribution ceiling and withholds income tax, while day-to-day direction stays with you.

The operating environment requires separate diligence. Sanctions exposure, payment routing and counterparty screening sit outside payroll compliance and should be reviewed by legal counsel before any commitment.

The unified insurance contribution is 30% within the ceiling and 15.1% above it. Employers no longer split the payment between pension, medical and social funds, it goes as a single amount.

The ceiling for 2026 is RUB 2,979,000, set by Постановление Правительства № 1705 of 31 October 2025, up from RUB 2,759,000 in 2025, an increase of RUB 220,000.

It is cumulative, not monthly. The base is tracked from the start of the year for each employee separately, so a senior employee crosses the threshold part-way through the year and the effective rate drops from that point onward.

On a salary of RUB 100,000 a month at the standard rate, contributions are RUB 30,000 a month and RUB 360,000 across the year, the ceiling is never reached.

Break-even rule of thumb: EOR fees begin to exceed the running cost of a Russian entity somewhere between 8 and 15 employees, early, because contributions dominate the cost stack. Model both, see EOR vs Entity.

Most reduced tariffs were abolished for 2026, and those that survive come with conditions that must hold throughout the year.

The 15% reduced rate is retained only for certain small and medium enterprises, and only on the part of monthly pay exceeding 1.5 times the federal minimum wage. Two conditions must both be met: the main activity code must appear on the Government’s list, and at least 70% of income must come from that activity for each quarter, half-year, nine months and the full year.

Manufacturing SMEs on the register keep a 7.6% rate, again only above 1.5 МРОТ and subject to the same two tests.

IT companies pay 15% up to the ceiling and 7.6% above it for 2026.

The calculation runs in two layers. Each month the employer separates the part of the base above 1.5 МРОТ and applies the reduced rate to it, while the part within 1.5 МРОТ attracts the general rate. Once the cumulative ceiling is passed, the rate on that 1.5 МРОТ portion itself drops from 30% to 15.1%.

The federal minimum wage governs these calculations, not the regional one. From 1 January 2026 it is RUB 27,093, making 1.5 МРОТ equal to RUB 40,639.50.

Injury contributions are charged separately and rated by occupational risk class.

Gross monthly salaries in roubles. Note that the cumulative ceiling means the effective employer rate falls part-way through the year for senior roles.

Benchmarks below are gross monthly salaries in roubles. Because the ceiling is cumulative per employee, the effective rate falls part-way through the year for higher earners.

Payroll is twice monthly, with contributions and withheld income tax reported through the unified tax account system.

Personal income tax runs on a progressive scale from 13% to 22% following the reform that took effect in 2025. Confirm the current band thresholds with the Federal Tax Service before configuring payroll, since they are subject to periodic revision.

Two changes are already scheduled. Draft law № 1075364-8 provides for substantial changes to the social insurance system, with most provisions taking effect from 1 July 2026. And from 1 September 2026, amendments to article 58 of the Tax Code simplify the submission of notifications for income tax and insurance contributions, under Federal Law № 425-ФЗ of 28 November 2025.

Anyone building a payroll calendar for the second half of 2026 should plan for both.

Progressive personal income tax introduced by the 2025 reform. Confirm current thresholds with the Federal Tax Service.

The federal minimum wage is RUB 27,093 from 1 January 2026. Regional minimum wages may be higher, but it is the federal figure that governs reduced tariff calculations.

The standard working week is 40 hours.

New rules apply to heads of organisations from 2026, requiring contributions calculated by reference to the minimum wage. The Federal Tax Service has confirmed these do not extend to heads of peasant farm enterprises.

Employment relationships are governed by the Labour Code, with contributions under the Tax Code.

Contracts should record pay, hours, leave, notice and termination terms.

Establish whether any reduced tariff applies before the first payroll run, and confirm both the activity code and the revenue share position.

Set the payroll system to track the contribution base cumulatively per employee rather than monthly.

The standard week is 40 hours, with overtime under the Labour Code.

Because the ceiling is cumulative, additional pay early in the year attracts the full 30% while the same amount later in the year may fall above the threshold at 15.1%, so timing affects cost.

Where a reduced tariff applies, overtime interacts with the 1.5 МРОТ split each month, since the reduced rate attaches only to the portion above that level.

Russia observes an extended New Year holiday period in early January alongside national public holidays through the year.

Russia observes an extended New Year holiday period in early January alongside national public holidays. Dates and any substitution rules are set out below.

The unified contribution funds pension, medical and social insurance together, so the employer makes one payment rather than three.

Injury contributions sit outside that structure and are rated by occupational risk class, which means the nature of the work affects cost directly.

Liquidation carries a specific distinction. Where an arbitration manager is appointed for bankruptcy, their remuneration is not subject to employer contributions, they account for themselves. But where a company is liquidated and management powers pass to a liquidation commission or liquidator, the treatment differs.

That matters for any organisation winding down operations, and the Federal Tax Service addressed it specifically in guidance issued in March 2026.

Termination follows the Labour Code, with notice and severance set by statute.

Final pay including accrued leave is due on separation and must be reflected in the contribution and income tax reporting for the period.

Wind-down scenarios need particular care, given the different contribution treatment of arbitration managers and liquidators.

Because the contribution base is cumulative, a mid-year departure leaves the year-to-date position fixed at whatever level was reached.

The reduced tariff conditions are tested repeatedly, not once. The 70% revenue share must hold for each quarter, half-year, nine-month period and the full year, so a business can qualify in the first half and lose the relief later.

That makes the relief unsuitable to assume in a forward cost model unless the revenue mix is stable.

Work authorisation for foreign nationals is employer-sponsored; confirm current requirements before committing to a start date.

Sanctions and payment routing sit outside payroll compliance and require separate legal review. Nothing in this guide addresses them.

Treating the ceiling as monthly is the most common structural error. It is cumulative per employee from the start of the year, so the switch to 15.1% happens at a point in the calendar rather than at a monthly salary level.

Assuming a reduced tariff still applies is the second. Most were abolished for 2026, and the survivors depend on conditions tested four times a year.

Using a regional minimum wage in the 1.5 МРОТ calculation is wrong, the federal figure governs.

Note also that substantial social insurance changes take effect from 1 July 2026; that notification rules change from 1 September 2026; and that injury contributions are separate and risk-rated.

Work backwards from the start date. An EOR hire takes three to six weeks; entity formation runs two to four months.

Configure the ceiling as cumulative per employee, not monthly, that single setting prevents the most common error.

Test any reduced tariff against both conditions before relying on it, use the federal minimum wage for the 1.5 МРОТ split, and plan for the July and September 2026 changes.