- Awara
- June 16, 2025
- 36
Staff and Labor Relations
The following article is an excerpt from Awara Doing Business in Russia Guide 2025. Awara offers an ultimate guide of why Russia is a great place to do business, and how to realize your successful market entry.
Labor Law
All major provisions regulating labor and employment are concentrated in the Labor Code. Russian labor law applies to all labor relationships in Russia, regardless of the legal status or origin of the employer and the employee. Thus, a labor relationship involving a foreign company and a foreign individual working in Russia is primarily regulated by Russian law.
There is a general rule in the Russian Labor Code that the terms of employment in an individual labor contract must not be worse than those set out in the Labor Code and other related legislation, collective agreements, contracts and internal regulations. Some provisions of the law are mandatory and cannot be altered by agreement between the parties.
Options of engaging personnel: employment agreement, civil contract, out-staffing (employer of record).
Employment Agreement vs Civil Agreement
| Conditions | Employment Agreement | Civil Agreement |
| Regulation | Labor Code | Civil Code |
| Internal working rules | Employee should comply with the employer’s internal rules | Contractor does not need to comply with the employer’s internal rules |
| Terms | Unlimited (in exceptional cases may be fixed-term for up to 5 years) | One-time or project-based works. No limitations |
| Probation period | 3 months maximum (up to 6 months for top managers and Chief Accountant) | Not applicable |
| Work hours per week | 40 hours per week (standard terms) | Not applicable |
| Distant work | Possible (but mainly from the office) | By default (work from the office is possible) |
| Salary level | Not less than the minimum level set by law (32 916 RUB/month for Moscow) | No limitations |
| Overtime | Maximum 4 hours within 2 days, maximum 120 hours per year | No limitations |
| Overtime payment | x 1.5–2 coefficient from base salary | Not applicable |
| Salary payment | 2 times per month | No limitations |
| Paid Annual leave | 28 calendar days/year | Not applicable |
| Sick leave | First 3 days are paid by the employer | Not applicable |
| Maternity leave (paid leave) | Minimum 140 calendar days | Not applicable |
| Child-care leave (unpaid leave) | For 3 years after childbirth | Not applicable |
| Taxes and reporting | Done by the employer | Depending on contractor’s status* |
| Termination of contract | Upon employer’s or employee initiative | Depending on civil contract terms |
| Risks | Disputes with employees during the termination of a contract, the employee’s rights are strongly protected by the labor law | The civil contract may be requalified to an employment agreement, when the real circumstances of the work relationship meet the criteria of the labor law |
* The civil contract is concluded with an individual person that may have a different status for taxation purposes: individual, self-employed, individual entrepreneur. The self-employed and individual entrepreneurs submit tax reports and pay taxes by themselves. While the company is the one that pays and submits reports for individuals.
Out-staffing agreement (Employer of record)
Under an out-staffing agreement, employees should be hired via an employment agency, but will execute his/her duties under the management of the client’s firm. The agency will sign an employment agreement with the employee and take care of all the routines regarding salary calculations and payments, tax filing and reporting.
The employer of record service is widely used by international companies that are looking for a cost-efficient solution while entering the Russian market. The service helps companies to have all the benefits of specialists’ employment, but avoid administrative, payroll and HR routines.
Please contact Awara to explore more about the service.
Work Permits and Visas
Before hiring a foreigner, the employer must obtain a permit to use foreign workforce (except for Highly Qualified Specialists). It cannot be transferred to another employer, and foreign workers employed on this basis cannot be given up to another employer. The employer is entitled to use foreign workers only in the capacity and the area that were indicated in the permit. It can invite foreign workers and enter into a labor contract with them only after receiving the permit. A work permit is needed regardless of whether salary (or other compensation) is paid or not.
A foreign employee must also obtain a personal work permit for the location of the company’s main registration (or registration of its subdivision). This is done by applying to the Ministry of Internal Affairs of Russia.
It is also important to receive an appropriate visa corresponding to the purposes of stay in Russia. As a rule, a foreign worker needs a work visa or (in some cases) a business visa*.
* Employees from countries enjoying a visa-free regime with Russia should obtain a ‘‘patent’’ (a special permission document) allowing them to work for both individuals and legal entities. Citizens of Belarus, Kazakhstan, Armenia and Kyrgyzstan do not need patents/work permits to work in Russia.
There are two main immigration employment regimes for foreigners from countries that require a visa to come to Russia:
| Highly qualified specialists (HQS) | Standard work permit | |
| Minimum salary | RUB 250,000 per month | No minimum salary |
| Work permit and visa, validity period | Up to 3 years (depending on the term of the employment agreement) | Up to 12 months |
| Processing time (days) | 14 working days | 3-6 months |
| Documents required | – Copy of passport and foreign address of registration – Certified copy of diploma Photo in color – Local employment agreement | – Copy of passport and foreign address of registration; – Certificate confirming knowledge of Russian language and history and the fundamental principles of Russian law – Certified copy of diploma with apostille – Photo in color |
| Work permit for employee | Obtained by the employee | Obtained by the employer |
| Permit to use foreign workforce | No permit is required for the employer | Employer must obtain a special permit to employ a foreigner |
| Visas for family members | May be obtained for the entire validity period of the HQS permit | Not available |
| Medical examination | Must be passed by the employee | Must be passed by the employee |
| Social tax rates | Reduced tax rates | Standard rates |
| End of contract (leaving of Russia) | After the labor contract ended, the employee has 30 days to sign a new labor contract and receive a new work permit, otherwise he/she should leave the country | Should leave Russia after the end of the labor contract |
| Notifications of immigration authorities | – About the conclusion or termination of an employment agreement within three business days after the date of the event. – About salary paid to HQS work permit holders during the reporting quarter (by the end of the month following the reporting quarter) | |
Salary overview
This salary survey was conducted in order to provide an overview of the job market and average salaries in Moscow. (only the most in-demand positions are displayed).
In general, salaries (especially for executives) in Moscow and Saint Petersburg are on the rise. At the same time, it is difficult to state a definite salary figure as the pay for most positions can vary considerably depending on factors such as the size of the company and the level of experience of the employee, especially among the top ranks, wherefore the salaries listed are variable estimations.
The first and second column displays the monthly gross salary of the major part of employees. To give an idea of the earning possibilities in Moscow, we introduced a “Top Earners” column, displaying an average salary level at the top end of the job market. Top Earners usually have a higher level of education and specialize in higher technologies or work for international companies.
| Positions* | Minimum salary | Medium salary | Top earners |
| Deputy General Director | 190 000 | 280 000 | 450 000 |
| Finance Manager | 150 000 | 220 000 | 330 000 |
| Sales Manager | 170 000 | 200 000 | 250 000 |
| Sales Assistant | 75 000 | 93 000 | 130 000 |
| Head Of Warehouse | 151 000 | 164 000 | 205 000 |
| Logistics Manager | 170 000 | 200 000 | 250 000 |
| Warehouse Attendant | 63 000 | 85 000 | 102 000 |
| Head of Service Department | 207 000 | 260 000 | 402 000 |
| Service Engineer | 130 000 | 160 000 | 230 000 |
| Office Manager | 80 000 | 120 000 | 150 000 |
| Office Driver | 70 000 | 90 000 | 120 000 |
*All salaries are provided in gross amount and in RUB (average per month). Bonuses, commissions, other incentives and remunerations are not included in above numbers and depend on the personal KPI performance.
