Summary

The Social Security system in Russia consists of three main branches – the State Pension fund, the Federal Fund for Mandatory Medical Insurance, and the Social Insurance Fund, which oversees payments of unemployment compensation, family allowances, sickness and maternity benefits.

Details

Contributions

A combined contribution rate of 30% applies on salary up to approx. $25,000 (2.9% social insurance, 22% pension insurance, and 5.1% medical insurance), and a combined rate of 15.1% applies on salary exceeding $25,000 (10% pension insurance and 5.1% medical insurance). All contributions are paid by the employer, usually on the basis of the earnings declared in the immigration process.

Treaties

Russia has bilateral social security agreements with approximately 12 other countries, mainly Former Soviet Union states, but also with Bulgaria and Serbia. The employers of most foreign nationals moving to Russia will therefore be liable to Russian social security as well as, potentially, home country contributions or home country voluntary contributions if home benefit entitlements are to be maintained.

Exemptions

Because of the close link between the Russian tax and social security systems, exemption from Russian income taxes under the applicable tax treaty also usually leads to exemption from social security contributions. Short term postings to Russia may not, therefore, create a social security liability.

The employers of those working in Russia under Highly Qualified Migrant visas may also be exempt from social security contributions (but not Accident Insurance contributions).

Benefits

In principle, foreign employees and expatriates for whom social security contributions have been made are able to access the full range of Russian state benefits. In practice, few if any foreign nationals do.

Need more specific advice?Ask an expert