Expanding into Russia offers access to a skilled workforce, strategic location, and new market opportunities. But it also comes with challenges: the need to have a local presence, complex labor laws, payroll administration, and compliance with local tax rules.

This is where an Employer of Record (EOR) becomes the ideal solution. By partnering with a trusted EOR provider, you can hire employees in Russia without a local entity, while staying fully compliant with Russian labor law.

Key Benefits of EOR in Russia

• Faster market entry – start operations immediately.
• Full compliance – avoid risks related to labor law and taxation.
• Cost-effective – no need for HR or payroll departments.
• Scalable hiring – test the market before committing.
• Focus on growth – while we manage employment administration.

Why Choose Employer of Record Services in Russia?

EOR services allow you to employ staff in Russia quickly, safely, and cost-effectively. There may be various reasons for your company to choose this option, but some of the main benefits are as follows:

Market Entry

Wanting to test the market before committing? Hire top candidates immediately without waiting for your entity to be registered. Once you choose to register a company and your own Russian company is ready, employees can be transferred seamlessly.

Expert Advice

Leave the complexities of HR and labor law to professionals. From onboarding and payroll to off-boarding and compliance, Awara ensures every step meets Russian legal requirements.

Try & Hire

Not sure if you want to commit long-term? With EOR, you can first hire through us, extend the probation period, and only transfer staff later once you’re confident.

How the EOR Process Works

The process is straightforward:

1. Candidate selection – present your own candidates or engage your recruitment team (ask us for a proposal)
2. Employment formalities – we arrange contracts under Russian labor law while you manage daily tasks and supervision.
3. Service agreement – signed with your company, while employees receive official Russian labor contracts.
4. Payment options – to simplify international transactions, we can conclude service agreements and payments via our Kazakh entity (Awara Eurasia). Employees remain fully employed in Russia under our local entity.

Stay flexible, reduce compliance risk, and focus on your business growth!

Understanding Salary and Payroll in Russia (2025)

One of the most common questions from international companies is how salaries are calculated in Russia. Here’s what you need to know:

• Personal income tax (PIT): From January 1, 2025, Russia applies a five-stage progressive tax scale of 13%–22% for residents, and up to 30% for non-residents. All gross monthly salary, bonuses, and other income are subject to PIT.
• Employer’s social contributions:
  • 30% on remuneration up to RUB 2,759,000 per calendar year.
  • 15.1% on salary above this threshold.
  • These limits are reviewed annually by the Russian government.
  • Exemption: Highly qualified specialists (HQS) with work permits are exempt from these social contributions.
• Accident insurance: Employers must contribute 0.2% for office staff.
• Vacation pay: Employees receive 28 calendar days of annual paid vacation. To simplify accounting, we add 9.1% to the monthly salary to cover vacation pay in advance. Final reconciliation is completed post-factum.
• Reimbursements: If applicable, they are processed separately at an 8% fee and are not included in the fixed payroll service fee.

Get a quote today!

Choose the fastest and safest way to hire employees, navigate payroll, and enter the market without setting up a local entity. Whether you need to hire one key specialist or build a larger team, we can assist you with your projects.

Ready to hire with EOR? Contact us for a quote. We’ll guide you through every step!

info@awaragroup.com

+7 495 225-30-38 Moscow
+7 812 244-75-49 Saint Petersburg
+7 495 225-30-38 Tver