Hiring Employees in Russia: A Complete Guide for Employers

Expanding your business to Russia? Hiring employees in Russia requires a thorough understanding of local labor laws, taxation, and cultural nuances. This guide covers everything you need to know about recruiting, onboarding, and retaining talent in the Russian market.
1. Understanding Russian Labor Laws

Before hiring employees in Russia, employers must comply with the Labor Code of the Russian Federation. Key regulations include:

Employment Contracts: A written contract is mandatory and must outline job duties, salary, working hours, and termination conditions.

Probation Period: Up to 3 months (6 months for executives), during which termination is easier.

Working Hours: Standard workweek is 40 hours, with overtime pay required for additional hours.

Vacation & Leave: Employees are entitled to 28 calendar days of paid leave per year, plus public holidays and sick leave.

2. Recruitment Process in Russia
Where to Find Talent?

Job Portals: HeadHunter (hh.ru), SuperJob, LinkedIn

Recruitment Agencies: Useful for executive hires

University Partnerships: For young professionals

Hiring Foreign Employees

Non-Russian workers need a work permit and a patent (for CIS countries) or a Highly Qualified Specialist (HQS) visa for high-earning professionals.
3. Payroll & Taxation

Personal Income Tax (PIT): 13% for residents, 30% for non-residents

Social Contributions: ~30% of salary (pension, medical, social insurance)

Salary Payments: Must be made at least twice a month in rubles (RUB)

4. Employee Benefits & Retention

Russian employees value:

Competitive salaries (benchmark local rates)

Health insurance (voluntary medical insurance – VMI)

Bonuses & performance incentives

Flexible work arrangements (remote work options)

5. Termination & Severance

Voluntary Resignation: 2 weeks’ notice required.

Dismissal: Must follow strict legal procedures; severance pay is usually 2-3 months’ salary.

Conclusion

Hiring employees in Russia can be complex, but with the right legal knowledge and recruitment strategy, businesses can successfully build a strong workforce. Ensure compliance with labor laws, offer competitive benefits, and leverage local recruitment channels for the best results.

Need help hiring in Russia? Consult with GTTLLC