What do you need to know to hire in Russia?
Russia runs a single 30% unified employer social contribution on earnings up to the annual wage base, no separate pension line. Statutory leave is 28 days and payroll must be paid at least twice a month. Each guide below takes one layer.
· Russia guide
How does Teamed handle Russian hiring for you?
Teamed becomes your legal employer of record in Russia for from $599 per employee per month, with zero FX mark-up in any currency.
Payroll, contracts, and the full Russian employment law stack run on one platform.
Real HR and legal experts manage every Russian hire, from the first offer letter to the final payslip. An actual person, not a chatbot or a pooled queue, handles your Russian team alongside EOR, contractor onboarding, and entity payroll on one platform. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.
A Russian contractor who converts to employment keeps their record, and that same employee can graduate from EOR to your own Russian entity without re-onboarding. Run the Crossover Calculator to see the month the model flips. EOR is the right model for a first Russian hire, until it isn't.
- Russia replaced separate pension, medical, and social streams with one unified contribution in 2023. Employers pay 30% on earnings up to the annual wage base and 15.1% above it. There is no separate pension line. Most global EOR guides still show the pre-2023 split rates.
- Employees pay zero social contributions. The full 30% unified rate falls on the employer. The employee side is 0%. That makes the Russian payroll model structurally different from most European countries where both sides contribute.
- Russia mandates twice-monthly payroll by law. The Labor Code requires salary to be paid at least every half-month. Missing a pay date triggers fines and compensation liability. Most countries allow monthly payroll; Russia does not.
Hiring in Russia adds 30% in unified social contributions on the first part of each employee's earnings, dropping to 15.1% above the annual wage base.
Russia has no universal personal allowance. Income tax starts at 13% from the first ruble and rises to 22% on very high earners.
Teamed runs Russian payroll, contracts, and compliance through an EOR partner entity holding the required Russian registrations.
This page is the map. Each guide below is the detail.
Zero FX. No setup fees. 48-hour onboarding. The price your finance team can forecast against without an asterisk.
How much does it cost to hire an employee in Russia in 2026?
A Russian hire costs roughly 130 percent of gross salary once unified social contributions are added.
Employer unified social contributions run at 30% on the bulk of earnings. The rate drops to 15.1% above the annual wage base.
Russia replaced its separate pension, medical, and social insurance streams with one unified employer contribution (ediniy tarif) in 2023. Below the annual wage base, you pay 30%. Above it, the rate drops to 15.1%. Employees pay nothing. There is no 13th-month obligation unless a collective agreement requires one. Teamed's Russia fee sits inside the total cost envelope.
Teamed's Russia price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits passed through at cost on every invoice.
The full breakdown, with worked examples at current statutory rates, is in the cost guide.
Do you need a Russian entity to hire employees in Russia?
No. An Employer of Record runs Russian payroll and contracts from day one.
Your own Russian LLC (OOO) becomes cheaper than EOR somewhere around 5 to 8 employees, depending on salary.
Forming a Russian OOO requires notarisation, registration with the Federal Tax Service, and ongoing accounting filings. Setup takes several weeks and comes with continuing compliance obligations. An Employer of Record is faster and cheaper at low headcount. Teamed runs Russian payroll, contracts, and twice-monthly pay runs from day one.
The crossover point depends on salary levels and your local accounting costs. For most tech roles it lands around 5 to 8 employees. The EOR vs entity guide runs those numbers.
Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Russian entity on one platform under Teamed's Graduation Model, with tenure preserved.
What are the key employment law rules in Russia in 2026?
The federal minimum monthly wage rose to RUB 27,093/month from 1 January 2026.
Probation is capped at 3 months for standard employees, with only 3 days written notice required to end it.
The federal MROT (minimum monthly wage) was raised to RUB 27,093/month from 1 January 2026 under Federal Law No. 429-FZ. Some regions set higher regional minimums on top. The standard working week is capped at 40 hours under Labor Code Article 91. Written employment contracts are required from day one.
Probation for standard employees runs up to 3 months. Senior managers and directors can be put on probation for up to 6 months. During probation, either side can exit with 3 days written notice. The hiring guide covers day-one obligations in detail.
What benefits must you provide Russian employees in 2026?
The statutory floor is 28 days of paid annual leave and at least 3 days of sick pay funded by the employer.
Maternity leave runs for 140 days at full average pay, funded by the Social Insurance Fund.
Statutory annual leave is 28 days of calendar days under Labor Code Article 115. Russia counts leave and public holidays separately. The standard working week is 40 hours. Sick pay is funded by the employer for the first 3 days, then by the Social Insurance Fund from day four onward. The rate depends on service length: 60% for under 5 years, 80% for 5 to 8 years, and 100% for 8 or more years.
Maternity leave runs for 140 days at 100% of average earnings, funded entirely by the Social Insurance Fund. Fathers get 5 days of unpaid leave. There is no paid paternity leave in Russia. The benefits guide covers leave, sick pay, and maternity in full.
What are payroll taxes in Russia in 2026?
Employer unified social contributions are 30% on earnings up to the annual wage base.
Employees pay income tax on a progressive scale starting at 13% and rising to 22% for very high earners.
Russia's 2023 unified tarif (ediniy tarif) replaced the former pension, medical, and social insurance streams. Employers pay 30% up to the annual wage base, then 15.1% above it. Employees pay 0% in social contributions. Russia has no universal personal allowance. Income tax starts at 13% from the first ruble and rises to 15% above RUB 2.4 million, reaching the top rate of 22% above RUB 50 million.
NDFL (personal income tax) must be remitted by the employer on a bi-monthly schedule: withheld amounts from the 1st to the 22nd are due by the 28th; amounts from the 23rd to month-end are due by the 5th of the following month. Payroll must be paid at least 24 times a year under Labor Code Article 136. The tax and payroll guide sets out every band and threshold.
How do you terminate an employee in Russia?
Russian redundancy notice for most dismissals is 2 calendar months under Labor Code Article 180.
Severance on redundancy or liquidation is 1 month of average pay on the final day, plus up to 3 months total if the employee remains unplaced.
For dismissal on grounds of redundancy or liquidation, employers must give 2 calendar months of written notice under Labor Code Article 180. During probation the notice drops to 3 days. Employees can resign on 14 days written notice at any time. For a fixed-term contract expiry, 3 days notice is required before the last day.
Redundancy severance is 1 month of average earnings on the last day of work. If the employee remains unplaced after the first month, further monthly payments continue for up to 3 months total. Final pay must be settled on the employee's last working day. There is no minimum service requirement for redundancy severance under Article 178. The termination guide covers each route in full.
What should you know before hiring in Russia?
Two things catch US buyers out. The first is twice-monthly payroll.
The second is that dismissal for cause requires documented grounds and, in some workplaces, trade union consultation.
Twice-monthly payroll is not a preference. Russia requires salary to be paid at least 24 times a year. Missing a pay date triggers mandatory compensation and administrative fines. Most US buyers assume they can run monthly payroll in Russia just as they do at home. They cannot.
Dismissal for cause requires documented grounds. The Labor Code lists the permitted grounds for dismissal narrowly. Firing without a valid written ground exposes the employer to reinstatement orders and back pay for the full period of forced absence. Russia does not have a compensatory award cap in the way common-law systems do: reinstatement is the primary remedy. The hiring guide and the termination guide both cover how to proceed safely.
Frequently asked questions
How much does it cost to hire an employee in Russia?
Plan on roughly 130 percent of gross salary once the unified employer social contribution at 30% is added on earnings up to the annual wage base. The rate drops to 15.1% above the base. Teamed's Russia fee is one flat number per employee per month, with zero FX mark-up in any currency pairing. The cost breakdown guide has worked examples.
Can a US company hire in Russia without an entity?
Yes. An Employer of Record like Teamed runs Russian payroll, contracts, and compliance through its own registered entity. You direct the work. Teamed becomes the legal employer of record. Setup takes 48 hours once terms are confirmed. Forming your own Russian OOO takes several weeks and comes with ongoing accounting and filing obligations.
What is the Russian minimum wage in 2026?
The federal MROT (minimum monthly wage) is RUB 27,093/month from 1 January 2026, set by Federal Law No. 429-FZ of 28 November 2025. Some regions set higher regional minimums. There is no statutory hourly minimum; the federal minimum is expressed as a monthly figure.
What are Russian statutory notice periods?
For redundancy or liquidation, employers must give 2 calendar months of written notice under Labor Code Article 180. During probation, the notice is just 3 days for either side. For fixed-term contract expiry, 3 days notice is required before the last day. Employees who resign must give 14 days written notice.
What is Russian redundancy severance pay?
On redundancy or liquidation, employers pay 1 month of average earnings on the last working day. If the employee is not placed in a new job, further monthly payments continue for up to 3 months total. There is no minimum service requirement to trigger the payment. Final pay must be settled on the employee's last day.
How does Russian payroll work?
Russian law requires salary to be paid at least 24 times a year (at least every half-month) under Labor Code Article 136. Employers must remit NDFL (income tax) bi-monthly: withheld tax from the 1st to the 22nd is due by the 28th; tax from the 23rd to month-end is due by the 5th of the following month. Missing a pay date triggers mandatory compensation and administrative liability.
Russia reads as a high-structure labour market but the logic is consistent once you know the code. The 2023 unified contribution reform cleaned up the payroll cost calculation. The piece most buyers miss is twice-monthly pay: it is not a recommendation, it is a legal obligation, and missing a date creates immediate liability.
Russia has a single employer contribution rate: 30% on the bulk of earnings, dropping to 15.1% above the wage base.
The part that surprises most buyers is the payroll calendar. You cannot run monthly payroll. The law requires payment at least twice a month.
Read the right Russia guide before the first hire, not after the first compliance notice.
