Payroll in Russia - Reporting and Compliance

Payroll in Russia involves dedicated procedures for calculating and distributing salaries in a company. You can find in the following lines information about the formalities involved in this process, mentioning that you can get in touch with our agents specialized in opening a company in Russia for such services.

Quick Facts
Employee/employer registration services [YES/NO]	YES
Mandatory contributions for employees	Personal income tax withheld from salaries at progressive rates of 13–22% for residents (30% for most non-residents)
Employment contributions for employers	Employers contribute to social security, healthcare, and pension fund – around 30% of employee’s salary
Payroll reporting requirements	Quarterly 6-NDFL (personal income tax) and RSV (insurance contributions) returns, monthly personalised reports and monthly payment of PIT and contributions via the single tax payment
Social security contribution for employees	None – in Russia social insurance contributions are paid only by the employer
Social security contribution for employers	Employers pay a unified rate of 30% up to RUB 2,979,000 per employee in 2026 and 15.1% above it, plus accident insurance of 0.2–8.5%
Special requirements for foreign employees	Foreign employees require work visas and permits. Companies must notify the authorities about foreign workers
Special requirements for Russian citizens working abroad [YES/NO]	YES, Russian citizens working abroad must be registered with the Russian tax authority and may be subject to tax on worldwide income.
Specific services for foreign companies in Russia	Foreign companies in Russia must register with the tax authority, social security authorities, and comply with Russian payroll laws.
Authorities to register with in Russia	Federal Tax Service (FTS) and Social Fund of Russia (SFR), created on 1 January 2023 by merging the PFR and FSS
Salary payment frequency in Russia	At least twice a month (Labour Code, Art. 136)
Employee benefits	Paid annual leave (28 days), sick and maternity leave, health insurance, and other company-specific benefits
Payroll components	– base salary; – bonuses; – overtime; – benefits (health insurance, transportation, etc).
Salary payment period	Salary paid at least twice a month (Labour Code, Art. 136)
Overtime payment period	Overtime is typically paid at least 1.5x for the first two hours and 2x thereafter; work on weekends/public holidays is paid at least double.

What does payroll mean in Russia?

Payroll in Russia involves standard procedures for calculating salaries, followed by their delivery to employees’ accounts. Among them, we mention:

The taxes to be paid to the state are calculated first. Both employees and employers have a share of social contributions;
The hours worked by the employee are taken into account. They normally do not exceed 40 per week. Overtime must be paid at increased rates (or, at the employee's request, compensated by time off);
Once the respective contributions are calculated and paid, payslips are drawn up and sent to the company‘s management for approval;
The last step in payroll in Russia is the distribution of salaries in the accounts of the company’s employees, according to the imposed regulations and schedule;
We mention that for this approach, specific payroll software and dedicated platforms are used by specialists in the field.

We invite you to discuss more about payroll in Russia with one of our Russian specialists. We have a dedicated team of accountants in Russia who can be hired for your business in this country. Plus, this infographic might help you in the future business decisions:

What is payroll reporting and compliance in Russia?

The Russian payroll closing process involves reporting and compliance. In this phase, all the necessary tax forms are returned, depending on the deadline, deductions are made where appropriate, and the withholding of social insurance contributions. This step is extremely important in payroll in Russia, so we recommend our team of company formation specialists for more information and support.

Salaries and contributions in Russia

The federal minimum wage (MROT) is RUB 27,093 per month from 1 January 2026. However, there are regions and cities where this salary differs. Thus, in Saint Petersburg, the regional minimum wage is about RUB 31,250 in 2026, while in Moscow it is about RUB 39,730. Regarding the contributions paid by the company, we list:

a unified insurance contribution of 30% up to RUB 2,979,000 per employee (2026) and 15.1% above it, covering pension, medical and social insurance;
reduced SME rates (15%, or 7.6% for manufacturing, on pay above 1.5 x MROT) apply from 2026 only to SMEs in priority sectors;
accident insurance – 0.2% to 8.5%, depending on the occupational risk class;
employees themselves pay no insurance contributions.

We mention that such contributions are calculated at the gross salary per economy. On the other hand, overtime payment is considered when calculating the salaries in the firm.

In addition to the mandatory social contributions, payroll in Russia requires employers to calculate and withhold personal income tax (PIT) from their employees’ wages. Since 2025, residents pay PIT at progressive rates from 13% (income up to RUB 2.4 million a year) to 22% (above RUB 50 million). Non-residents are subject to a higher rate – 30%. It’s crucial for businesses to comply with PIT filing requirements and ensure that all taxes are deducted and remitted to the Federal Tax Service (FTS).

In Russia, certain types of bonuses and employee benefits are taxable. For example, performance bonuses are subject to PIT, and any employer-provided housing or transportation allowances may also be considered taxable income. It’s essential for businesses to understand the full tax implications of these benefits to avoid unexpected liabilities. Our specialized accountants in Russia can offer relevant support in this matter.

If you are interested in payroll services in Russia, our specialists in the field can offer you the necessary support for the company you own.

Employment contract in Russia

According to the Employment Law in Russia, when a job is accepted, an employment contract is concluded, either part-time or full-time. Such a contract must contain information about the employing company, the type of activities, working hours and conditions, internal regulations, as well as remuneration. Also, an employment contract must stipulate whether it is for a fixed or indefinite period, plus general rules for ceasing such a contract.

A probation period (usually up to 3 months) may be specified in the contract. During this period, the employer has the opportunity to assess the employee’s performance. If either party is dissatisfied, the contract can be terminated with a simpler procedure than for permanent employment.

The contract should also specify the primary location where the employee is expected to perform his/her duties. If applicable, it should also outline any terms for relocating to different locations or traveling for work.

If you plan to open a company in Russia and start an employment procedure, you can rely on the support of our Russian company incorporation specialists to have a better understanding of the contractual matters.

Foreign workers and payroll in Russia

When employing foreign workers in Russia, companies must comply with Russian labor laws as well as the specific tax and payroll regulations applicable to non-resident employees.

These employees are subject to unique rules regarding: their work contracts, tax contributions, and compliance with immigration laws.

Foreign nationals who wish to work in Russia typically need a work visa. This visa is generally issued for a duration of up to one year, after which it must be renewed. In addition to a work visa, foreign workers must also have a work permit in Russia. Employers are responsible for applying for this permit on the employee’s behalf.

Russia has signed double taxation treaties with many countries (key provisions of those with 38 'unfriendly' states have been suspended since August 2023), in order to prevent foreign employees working in Russia from being taxed twice on the same income. Under these agreements, a foreign employee may be exempt from paying taxes in his/her home country or benefit from reduced Russian tax rates, depending on the specifics of the treaty.

If company incorporation in Russia involves hiring foreign employees for your business, our specialized agents can help with more information on the subject.

Employment in Russia

Russia is an attractive country in terms of workforce, and foreign companies in this country enjoy an advantageous tax system in this regard. Here are some interesting statistical data about employment in Russia:

In 2023, over 81 million workers – 15 years of age and above – were registered;
Around 13 million workers were registered in the wholesale and retail industry in 2023;
In 2024, the average unemployment rate was a record low of about 2.5%.
Employment rate in Russia was, on average, 62.10% from 2008 until 2024.

We invite you to contact our team of local agents, including our accountants in Russia, for all the information that interests you.