Social security contributions in detail

The employer pays social security contributions in favour of the employee into the following funds:

  • Pension Fund - 22% of remuneration up to RUB 1,292,000  and 10% of remuneration above the threshold;
  • Social Insurance Fund - 2.9% of the pay of Russian citizens and 1.8% of the pay of foreign citizens or stateless people for compulsory social insurance for temporary disability and maternity, up to RUB 912,000;
  • Federal Compulsory Medical Insurance Fund - 5.1% of all remuneration for compulsory medical insurance, without any threshold.

In addition to the above, employers must contribute to an occupational injury and illness insurance scheme administered by the Social Insurance Fund. The contribution rate varies from 0.2% to 8.5% of employees’ pay, depending on the degree of risk involved in the employer’s activities. The employee is not required to make any contributions.

Certain reductions are available for particular types of organisations, and there are additional payments to the pensions fund for employees with certain types of working conditions.

The employer must pay the contributions monthly. Social security contributions must be paid not later than the 15th day of each month in respect of the previous month. If the last day of the period falls on a weekend or holiday, the deadline is the next business day.

There are special conditions for paying social security contributions for foreign employees:

  • Foreign employees temporarily staying in Russia must make pension fund contributions of 22% on remuneration up to RUR 1,292,000 and 10% above the threshold, social insurance fund contributions of 1.8% on remuneration up to RUR 912 000 , and accident insurance contributions of 0.2% to 8.5%. Medical insurance fund contributions are not charged.
  • Highly qualified specialists temporarily staying in Russia must make accident insurance contributions of 0.2% to 8.5% only.
  • Foreign employees temporarily or permanently residing in Russia must make contributions similar to Russian employees: pension fund contributions of 22% on remuneration up to RUR 1,292,000 and 10% above the threshold, social insurance fund contributions of 2.9% on remuneration up to RUR 912,000 , medical insurance fund contributions of 5.1% (uncapped), and accident insurance contributions of 0.2% to 8.5%).
  • Highly qualified specialists temporarily or permanently residing in Russia must make pension fund contributions of 22% on remuneration up to RUR 1,292,000  and 10% above the threshold, social insurance fund contributions of 2.9% on remuneration up to RUR 912,000 , and accident insurance contributions of 0.2% to 8.5%. Medical insurance fund contributions are not charged.
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Author: ALRUD

Date: April 2020

 


Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.