Russia revises insurance premium, minimum wage, payroll reports, tax withheld period, notification, and payment due dates
Changes in threshold for insurance premium
The social security premium is calculated at 30% until the income reaches the established threshold. After that the premium is reduced to 15.1%. Effective from January 1, 2024, the threshold is established at RUB 2,225,000 as per Government Decree No. 1883 issued on 10th November 2023.
The threshold is applicable for pension insurance, medical care, and social insurance. The contribution for occupation and accident insurance is made on the entire amount of taxable income.
Changes in minimum wage
Effective 1 January 2024, the minimum wage has been increased to RUB 19,242 per month, as per Federal Law No. 548-FZ of 27 November 2023.
New retention periods for tax withheld, notifications and payment
Previously, the tax was withheld from the 23rd day of the previous month to the 22nd day of the current month. Now, the personal income tax will have to be withheld twice a month.
Paragraph 6 of Article 226 of the Tax Code of the Russian Federation has been amended in this regard.
The retention periods and respective deadlines effective from 1 January 2024 are as followsꓽ
|Tax withheld period
|Deadline of notification
|Deadline of payment
|1st to 22nd of current month
|25th of current month
|28th of current month
|23rd to 30th or 31st of the current month
|3rd of next month
|5th of next month
For retention period “23rd December to 31st December”, the notification & payment are required to be made by the last working day of the year.
Penalties will be charged for violation of payment deadlines in 2024 since the 2023 moratorium is no longer in effect.
Changes in payroll reports
- Form RSV: Starting 1 January 2024, the new DAM form is now the official document for insurance premium submissions, in accordance with amendments from Federal Tax Service Order No. EA-7-11/696@ dated 29 September 2023.
- Form 6-NDFL: Personal income tax calculated and withheld by the tax agent report for the 1st quarter of 2024 must be submitted in the recommended form as communicated by letter of the Federal Tax Service Order No. BS-4-11/15166@ dated 4 December 2023.
- Form ESF-1: The Pension and Social Insurance Fund of the Russian Federation, through Order No. 2281 dated 17 November 2023, has sanctioned the introduction of a new Form ESF-1. This form is designed specifically for the maintenance of personalized records and comprehensive information concerning accrued insurance contributions for mandatory social insurance against industrial accidents and occupational diseases.
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change
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