Employer of Record and Payroll Services in Russia 
Mercans-owned legal entity 
We have our own legal entity to protect your business from risk and provide you and your employees with a distinctive experience.
We have our own legal entity to protect your business from risk and provide you and your employees with a distinctive experience.
Services available
- Employer of record
- Contractor management
- Global payroll
- In-country payroll
Mercans offers complete payroll, PEO and HR services in Russia
Russie has a balanced budget policy and has one of the lowest public debt in Europe and the world. The government has adopted 42 state programs across many sectors in an effort to support large infrastructure projects. Many are mega projects which drive the economy, stimulate markets and generate revenue. Russia holds 11th place globally in terms of nominal GDP
Doing Business in Russia
Typically, investors face challenges in choosing among the different legal structures for their business in Russia. Foreign companies will often use LLCs to conduct wholly-owned businesses in Russia. Under Russian law, certain types of activities may require a license or type of permission. However, at present time, travel is not recommended at all due to the security environment and the impact of military conflict with Ukraine.
Entity Registration and Incorporation Requirements
Setting up a new business or expanding an existing one in Russia is straightforward. Choose how your company operates from a range of entity types that suit your individual circumstance.
Banking
Banking Hours: 9:00 am to 5:00 pm from Monday to Friday.
Working Week
The standard working week is from Monday to Friday from 9:00 am - 6:00 pm.
Labor Law
The labor relationship between the employer and employee is governed by the Constitution, the Labor Code, federal laws and other statutory laws. Parties to a labor relationship are not able to contract out of requirements that may be imposed by Russian labor law.
Main Industries
Complete range of mining and extractive industries producing coal, oil, gas, chemicals
GDP Growth
-0.8%
Dates & Numbers
dd/mm/yyyy
Official State Name
the Russian Federation
Population
146 million
Capital
Moscow
Major Languages
Russian
Currency
Russian Ruble (RUB)
Internet Domain
.ru
International Dialing Code
+7
9°C
Payroll
An employee may be engaged for night work if the working conditions require it but it does require the consent of the employee. If this occurs, the rate of pay must be at least 20 percent greater than the normal hourly rate.
It is acceptable to provide employees with online payslips
Payslip
Payroll reports must be kept for 5 - 7 years
Reports
Employees are entitled to receive paid annual leave of 28 days
Annual Leave
Employees are entitled to receive paid sick leave of 15 days
Sick Leave
Employees are entitled to 20 weeks of paid maternity leave and 5 days of unpaid paternity leave
Maternity & Paternity Leave
Employees must be provided with 14 days notice of the termination of their employment
Employee Termination
There are no provisions mandated by law regarding the 13th month salary
13th month salary
13890 RUB per month
Minimum Wage
Overtime pay is calculated at 1.5x the employee's ordinary rate of pay for the first 2 hours of overtime completed
Overtime
Employers must pay the dismissed employee their average monthly salary
Read more
when the employee is looking for a new job but for no longer than two months from the date of termination of employment.
Severance Pay
Tax and Social Security
Taxpayers are subject to Russian income tax as either tax residents or non-residents. There is an old-age insurance pension under a statutory compulsory pension insurance scheme. This social pension is not payable abroad.
Tax
Tax residents are taxed on worldwide income. Non residents are taxed on their Russia-sourced income.
Corporate Income Tax
Personal Income Tax
Sales Tax
VAT
Social Security
Retirement is not necessary. Working pensioners are not required to complete an income test. Pension benefits are financed out of contributions made to the pension insurance scheme.
Social Security Rate
Social Security Rate for Employers
Social Security Rate for Employees
Employment Law
There are new regulations which came into effect in January 2021 which amend applicable legislation significantly, introducing different types of remote and hybrid working arrangements. This allows employers far more flexibility.
Employment Agreement
An employment agreement is typically set out in writing and sets out the basic terms such as duration of employment, employment duties, working hours and more. Should an employee begin working before the written agreement is finalized, the agreement is taken to be concluded.
Working condition
There are new requirements for foreign nationals working in Russia, that is, an obligation to complete fingerprint and photo registration as well as a medical examination. This must be done within 30 days of entry into the country. Failure to do so will mean the duration of the temporary stay will be reduced.
Leaves
In respect of maternity leave, employees are not entitled to pay from their employer but receive a state benefit from the Social Insurance Fund. The employer pays the benefit and reclaims the sum from the Fund.
Employment termination
Employment may be terminated only on grounds that are provided by law. This is set out by the Labor Code. In general, state bodies are not required to be notified of such a dismissal.
14 days
Minimum notice period for terminating an employee
15 days
Total number of public holidays
40
Working hours per week
5 days
Total number of days for Compassionate & Bereavement Leave
Immigration
Foreign nationals are required to have a work permit. The exceptions to the rule is certain CIS nationals and other foreign nationals who have residency permits. Work permits are not always required for employees of suppliers or certain manufacturers. The procedure for a work permit is typically lengthy and consists of a few stages and may take up to four months in total. Permits are issued for a period of one year.
Residency permits
An individual work visa must be obtained. Separately, companies are required to report the number of foreign employees they believe they will engage in the coming year. There are also available work permits for HQS (highly qualified specialists), which is supported by a simplified procedure.
Work Permit Validity
3 years
Required Documents
A color passport photo
A passport or other valid identification document
Copies of relevant certificates of the individual’s qualification
A medical certificate that indicates that the individual suffers no disease
A receipt for the payment of all relevant fees
Build the best team and hire top talent compliantly in Russia. Get in touch with Russia payroll outsourcing & PEO specialists for a free consultation!