VIII. Taxes (налогы)
1. Personal Income Tax (Налог на доходы физических лиц - НДФЛ)
Russians pay a flat rate on their salaries of 13%.
2. Unified Social Tax (Единый социальный налог - ЕСН)
The Unified Social Tax is a regressive tax paid by employers on salaries. It ranges from 26-2% but since the regression only begins for salaries of about 300,000 rubles, which is more than most Russians could ever dream of receiving. 26% is thus a fairly flat rate across the board. Most social programs are funded by this tax and among them, the Russian State Social Insurance Fund (Фонд социального страхования Российской Федерации), roughly similar to America's Social Security Program.
Commentary: Avoiding the Unified Social Tax, which is fairly high, is probably the main reason that some employers do not document their employees. This situation has improved since Russia lowered the tax and simplified its structure, but the situation is still problematic.
IX. Vacation and Leave (отпуск)
1. Paid Vacation (оплачиваемый отпуск) (100% of regular pay)
All Russian employees are entitled to 28 paid vacation days per year. These days must be requested in advance and approved by the employer by an official order. They need not be taken consecutively. If an employee holds two jobs, the secondary job must grant paid vacation time concurrent with that granted by the primary job. The pay an employee receives for this vacation is referred to as "отпускные" and is the employer's responsibility to pay.
2. Sick leave (отпуск по болезни) (60-100% of regular pay)
Sick leave is paid by the Russian State Social Insurance Fund but may not exceed 12,480 RU per month. Employees are required to bring proof of illness (a note from the doctor) to their employers, but only after they are well enough to return to work. An employee is not required to inform their employer that they require sick leave until this time. An employee may not be fired during sick leave.
3. Maternity Leave (декретный отпуск) (60-100% of regular pay)
Maternity leave is paid as a percentage of regular wages by the Russian State Social Insurance Fund. Maternity leave begins 70 days before the due date and extends to 70 days after the delivery date but can be extended in the event of complications with the pregnancy.
4. Child-care leave (Отпуск по уходу за ребёнком) (Sometimes paid)
A new mother or primary caregiver may request partially paid child-care leave. This is paid by the state (as above) but must be honored by the employer. A mother has the right to unpaid leave and to reclaim her job until her child is three years old.
Commentary: Child-care leave is obviously not an advantageous arrangement for the employer, as it can make a female of child-bearing age a near permanent and non-present employee.
X. Disciplinary action (дисциплинарное взыскание)
Disciplinary action may occur only under set circumstances strictly defined in the Labor Code (such as drunkenness on the job, failure to complete duties, etc.) and must be documented by an order signed by a council of at least three employees.
XI. To Fire and to Quit (увольнять; уволиться с работы)
1. Quitting
Quitting employees must give two weeks written notice.
2. Firing
To fire an employee for misconduct or poor work performance, the employer must provide proof of disciplinary action (sometimes proof of several instances, depending on the infraction – see above). There are still greater restrictions on firing certain groups such as minors and union members; women in particular are almost impossible to fire under legal auspices. Plus, in order to officially fire an employee, the employee must be given advance notice in writing and the final termination must be documented and co-signed by the employee.
3. Severence
An employee who loses his/her job is entitled to receive a severance payment equal to two months wages, according to Russian law.
Commentary: The labor code is generally weighted in favor of the employee in this instance and employers who wish to operate "by the book" often complain that it is almost impossible to fire an employee once hired.
 | Special Thanks to:
Alexey Panteleev, Artem A. Babamuratov, Chet Bowling and especially to the employees of Alinga Consulting Group, a business consulting and audit firm with offices in Moscow and Boston, for their help in compiling and verifying this information. ACG is a sister company to SRAS. |
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