Hiring employees in Moscow requires a thorough understanding of Russia’s labor laws to ensure compliance and avoid legal risks. Whether you’re a local business or an international company expanding into Moscow, knowing key regulations on contracts, working hours, wages, and termination is essential.
1. Employment Contracts
Under the Russian Labor Code, all employment relationships must be formalized with a written contract. Key elements include:
- Job title and responsibilities
- Workplace location (remote work must be specified)
- Salary and payment terms (must meet or exceed the minimum wage, which is ₽19,242/month in 2025)
- Working hours and schedule
- Probation period (max 3 months for regular employees, 6 months for executives)
Foreign employees require additional documentation, including work permits and migration registration.
2. Working Hours and Overtime
- Standard workweek: 40 hours (typically 8 hours/day, 5 days/week).
- Overtime: Must not exceed 4 hours over 2 consecutive days or 120 hours annually. Overtime pay is 1.5x the regular rate for the first 2 hours and 2x thereafter.
- Rest periods: Employees must have at least 42 consecutive hours of weekly rest.
3. Wages and Benefits
- Minimum wage: Adjusted annually (₽19,242/month in 2024).
- 13th-month pay: Not mandatory but sometimes offered as a bonus.
- Social security contributions: Employers must pay 30% of the employee’s salary to the Pension Fund, Social Insurance Fund, and Mandatory Medical Insurance Fund.
4. Leave Entitlements
- Annual paid leave: At least 28 calendar days per year.
- Sick leave: Paid by the Social Insurance Fund (amount depends on length of service).
- Maternity leave: 140 days (70 before and 70 after birth), paid by social insurance.
5. Termination and Severance
- Notice period: At least 2 months for employer-initiated termination (except for misconduct).
- Severance pay:
- 1 month’s salary for layoffs.
- 2 weeks’ salary if employment ends due to refusal to relocate or medical incapacity.
- Illegal dismissal: Employees can challenge termination in court and demand reinstatement with back pay.
6. Compliance Risks for Foreign Employers
- Work permits: Required for non-Russian hires (exceptions apply for highly qualified specialists).
- Tax reporting: Employers must withhold 13% personal income tax (PIT) from salaries.
- Record-keeping: Labor books (paper or digital) must be maintained for all employees.
Conclusion
Navigating Moscow’s labor laws ensures smooth operations and minimizes legal risks. Employers should consult local legal experts to stay compliant with evolving regulations. Proper contracts, fair wages, and adherence to termination rules will help build a stable workforce while avoiding penalties.
Need help with employment compliance in Moscow? Consider consulting a local HR or legal specialist to ensure full adherence to Russian labor laws.