Employer of Record in Russia

An Employer of Record (EOR) helps you hire employees in Russia without setting up your own legal entity there. The EOR becomes the legal employer for your chosen candidates, handling HR tasks like payroll, taxes, benefits, and compliance with Russian labor laws. This arrangement allows you to focus on managing your team's day to day work and growing your business. For companies looking to hire in Russia, an EOR provider like Rivermate can simplify the process.

How an Employer of Record (EOR) Works in Russia

Using an EOR to hire in Russia follows a straightforward process. The EOR takes on the legal responsibilities of an employer, allowing you to build your team quickly and in compliance with local laws.

Here are the typical steps:

1. Select Your Candidate: You find and select the talent you want to hire in Russia.
2. Draft Employment Agreement: The EOR creates a legally compliant employment contract that meets Russian labor standards. This agreement outlines job duties, salary, and other terms.
3. Onboard the Employee: The EOR officially hires the employee. They handle all the necessary paperwork, including registering the employee with the correct authorities.
4. Manage Payroll and Benefits: The EOR processes monthly payroll, deducts taxes, and manages social security contributions. They also administer statutory benefits.
5. Ensure Compliance: The EOR stays up to date with Russian labor laws to ensure your employment practices remain compliant. This includes managing leave, working hours, and termination procedures according to the law.

Benefits of Using an EOR for Hiring in Russia

Using an EOR offers a practical solution for companies expanding into Russia. It saves you the significant time and expense of establishing a local business entity. This approach helps you reduce risks and manage your international team more efficiently.

Some of the key benefits include:

• Faster Entry into the Market: You can hire employees and start operations in a fraction of the time it would take to set up your own company.
• Reduced Costs: Avoid the high costs associated with legal fees, registration, and setting up a physical office.
• Guaranteed Compliance: EORs are experts in Russian labor law, minimizing your risk of legal issues and penalties.
• Simplified HR and Admin: The EOR handles complex administrative tasks, including payroll, tax filings, and benefits management, freeing up your internal resources.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Russia includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Russia.

Hiring in Russia means navigating a clear set of labor laws designed to protect employees. The Russian Labor Code governs most aspects of employment, from contracts to working hours. For companies looking to expand, understanding these rules is the first step to building a successful team in the country. While the process can seem complex, it’s straightforward when you know the key requirements.

Employment contracts & must-have clauses

In Russia, you must provide a written employment contract, and it's typically an indefinite-term agreement. Fixed-term contracts are only allowed in specific situations and cannot exceed five years.

Every employment contract must be in Russian and include two copies, one for you and one for the employee. Make sure each copy is signed by both parties.

Your contracts must include these essential clauses:

• Parties' Information: Full names of the employee and your company.
• Job Details: The employee's job title, specific duties, and their start date.
• Work Location: The physical address where the employee will work.
• Compensation: The salary, including any bonuses or allowances. You must pay salaries in Russian Rubles at least twice a month.
• Working Hours: Details on the work schedule and rest periods.
• Social Insurance: A statement on mandatory social insurance.

Probation periods

You can include a probation period in the employment contract to assess a new hire's suitability for the role.

• Standard duration: A probation period generally cannot exceed three months.
• Executive positions: For senior roles like directors and chief accountants, the probation period can be extended to six months.
• Termination during probation: If you decide to terminate the contract during the probation period, you must provide the employee with three days' written notice explaining the reasons.

Certain individuals, such as pregnant women and recent graduates, cannot be given a probation period.

Working hours & overtime

The standard workweek in Russia is 40 hours, typically eight hours per day, five days a week.

Overtime work is strictly regulated.

• Consent: You need written consent from the employee to have them work overtime.
• Limits: Overtime cannot exceed four hours over two consecutive days and 120 hours per year.
• Compensation: You must pay a higher rate for overtime hours.
  • First two hours: At least 1.5 times the employee's regular hourly rate.
  • After the first two hours: At least 2 times the regular rate.

Public & regional holidays

Employees in Russia are entitled to paid time off for national public holidays. If a public holiday falls on a weekend, the day off is often moved to the following Monday.

Here are the public holidays for 2025:

Hiring contractors in Russia

You can hire independent contractors for project-based or specialized work. This offers flexibility and can be cost-effective. However, it's critical to classify workers correctly.

An independent contractor relationship is governed by the Civil Code, not the Labor Code. This means contractors are not entitled to employee benefits like paid leave, minimum wage, or social security contributions from the employer.

Misclassifying an employee as a contractor to avoid these obligations is a serious risk. If a court reclassifies a contractor as an employee, you could face significant penalties, including:

• Back payment of taxes and social contributions.
• Administrative fines.
• Legal disputes where you may have to pay for unpaid benefits.

An Employer of Record (EOR) can help you mitigate these risks. We handle worker classification and ensure full compliance with Russian labor laws, allowing you to focus on growing your business without the legal complexities.

Navigating compensation and payroll in Russia can feel complex, but it's straightforward when you understand the rules. Russian labor laws are quite comprehensive, and the foundation of your relationship with an employee is a formal written employment contract. This contract is key. It must be in Russian and detail everything from job duties and working hours to salary and benefits, with all compensation listed in Russian rubles.

Payroll cycles & wage structure

You must pay employees at least every two weeks. The law is specific: the gap between payments cannot be more than 15 calendar days. For example, if you pay an advance on the 20th of the month, the final salary for that month must be paid no later than the 5th of the next month. These payment dates must be clearly stated in the employment agreement or your internal company regulations.

Overtime & minimums

The standard work week in Russia is 40 hours, typically eight hours per day. Anything beyond this is overtime and requires clear agreement. Overtime work is paid at a higher rate:

• 150% of the regular hourly rate for the first two hours.
• 200% of the regular rate for any hours after that.

There are limits to overtime. An employee cannot work more than four hours of overtime in two consecutive days or more than 120 hours per year.

Russia has a federal minimum wage, but it's important to know that this rate often varies by region, with major cities like Moscow having higher minimums. You must ensure you are paying at least the minimum wage applicable in the employee's specific location.

Employer taxes and contributions

As an employer, you are responsible for making social security contributions on top of an employee's gross salary. These contributions fund pensions, social insurance, and medical coverage.

Employee taxes and deductions

You are responsible for withholding Personal Income Tax (PIT) from your employees' salaries and remitting it to the tax authorities.

In Russia, employee benefits and leave are a mix of legal requirements and extra perks. The law sets the minimum standards for time off and social protections. Many companies offer more than the basics to attract and keep good people. This can include things like private health insurance and extra vacation days. Foreign citizens with permanent or temporary residency generally get the same benefits as Russian citizens.

Statutory leave

Russian law provides several types of mandatory leave for employees.

• Annual Leave You get a minimum of 28 calendar days of paid vacation each year. You can take your first leave after six months with a new company. One part of your vacation must be at least 14 days long.
• Sick Leave If you are sick or injured, you are entitled to paid sick leave. You need a medical certificate from a doctor. The employer pays for the first three days, and the Social Insurance Fund covers the rest. Your pay depends on how long you've been working.
• Maternity Leave Pregnant employees receive 140 days of paid maternity leave. This is usually 70 days before the birth and 70 days after. The leave is longer for multiple births or complications.
• Parental Leave After maternity leave, a parent or guardian can take childcare leave for up to three years and still keep their job.
• Other Leave The law also requires employers to provide leave for other situations, such as bereavement, military service, and studying.

Public holidays & regional holidays

You get paid time off for national public holidays. Working time is often reduced by one hour on the day before a holiday.

Typical supplemental benefits

Many companies offer benefits beyond what the law requires. Here’s a look at what's legally required versus what's often added.

How an EOR can help with setting up benefits

Setting up a compliant benefits package in another country can be complex. An Employer of Record (EOR) makes it simple.

An EOR already understands Russia's labor laws and common practices. We handle everything from ensuring you meet the legal minimums to sourcing competitive supplemental benefits. This saves you time and reduces risk. We manage payroll, benefits administration, and compliance, so you can focus on growing your team.

Ending a working relationship in Russia is a formal process. You need to follow the rules in the Russian Labor Code. The law is very protective of employees, so you must handle terminations carefully. The process involves specific reasons for dismissal, required procedures, and significant protections for employees.

Notice periods

When you end an employment contract, you usually need to give notice. The length of this notice period depends on why you are terminating the employee.

• General notice: For most employer-initiated terminations, like redundancy, the notice period is two months.
• Shorter periods: In some specific situations, the notice period can be as short as three days.
• Employee resignation: If an employee decides to leave, they generally need to give you two weeks' notice.
• Probationary period: If you terminate an employee during their probation period for unsatisfactory performance, you must notify them in writing at least three days in advance.

It's important to check if a collective agreement or the individual employment contract requires a longer notice period.

Severance pay

When an employee leaves, you need to provide them with their final pay on their last day of work. This includes any outstanding salary and payment for unused vacation days. Depending on the reason for termination, you may also need to pay severance.

For redundancy, if the employee hasn't found a new job after one month, they can request a second month's salary as severance.

How Rivermate handles compliant exits

When you work with an Employer of Record like Rivermate, we help you manage the entire offboarding process. We make sure everything is done correctly and according to Russian law.

Here’s how we help:

• Documentation: We prepare all the necessary paperwork, including the termination order and final pay calculations.
• Compliance: We ensure that the reasons for termination are valid and that you follow all legal procedures to avoid disputes.
• Final Payments: We calculate and process all final payments, including salary, unused vacation, and any required severance.
• Smooth Transition: We manage the notice periods and communication to ensure a respectful and professional exit for the employee.

Navigating Russia's visa and work permit system can feel complex. You need to understand the different types of visas and how they apply to your situation. For anyone looking to work in Russia, securing the right visa and work permit is the first step. The process involves both the employee and the employer, with specific requirements for each.

Employment visas & sponsorship realities

When it comes to hiring foreign talent in Russia, you have a few visa options. The most common routes are the standard work visa and the Highly Qualified Specialist (HQS) visa. An Employer of Record (EOR) can be your partner in this process, acting as the legal employer for your team members in Russia.

An EOR can sponsor both standard work visas and HQS visas. This means you don't need to set up your own legal entity in Russia to hire employees there. The EOR takes care of the necessary paperwork and ensures compliance with Russian labor laws.

Here’s a breakdown of the practical routes for employment visas:

• Standard Work Visa: This is a common option for many foreign workers. It typically involves a more detailed application process and is subject to annual government quotas.
• Highly Qualified Specialist (HQS) Visa: This visa is for professionals who meet a certain salary threshold. The application process is generally faster and more straightforward than the standard work visa. The HQS visa is valid for up to three years and allows for multiple entries.

An EOR can help you determine the best visa strategy for your employees and manage the entire sponsorship process.

Business travel compliance

For short-term business trips to Russia, a business visa is required. This visa is for activities like attending meetings, negotiating contracts, or participating in conferences. It is important to remember that a business visa does not permit you to work in Russia.

There are a few key things to keep in mind for business travel compliance:

• Visa Types: Business visas can be single-entry or multiple-entry. Single-entry visas are suitable for a one-time trip, while multiple-entry visas allow for several visits within a specific period.
• Duration of Stay: A business visa typically allows for a stay of up to 90 days within a 180-day period. For very short trips, a unified e-visa may be an option, allowing for a stay of up to 16 days.
• Invitation Letter: To get a business visa, you will need an official invitation from a Russian company. This letter confirms the purpose of your visit.
• Registration: When you arrive in Russia, you must register your visa within seven working days.

By understanding these requirements, you can ensure your short-term business travel to Russia is compliant with local regulations.