Payroll in Russia for Foreign Companies: Rules, Taxes and Reporting

For an employee earning RUB 300,000/month: standard foreign national (non-resident, first 183 days) costs the employer RUB 390,000 total (salary + 30% social contributions) and the employee nets RUB 210,000 (after 30% PIT). The same employee on an HQS permit costs the employer RUB 300,000 (no social contributions) and the employee nets RUB 261,000 (13% PIT). Employer saving: RUB 90,000/month per employee.

Yes. Chinese nationals on HQS permits are a common case — 0% social contributions, 13% PIT from day one, regardless of how long they have been in Russia. We also handle the interaction between HQS payroll and the Russia-China tax treaty on employment income (Article 15 — employment income taxed in Russia). See our guide to hiring Chinese employees.

HQS status is lost automatically — the employee reverts to standard foreign national status with 30% PIT (if not yet a tax resident) and full 30% social contributions. We monitor all HQS employees quarterly and alert you before any threshold breach. Salary adjustments must be documented correctly in an amended employment contract.

Yes. We handle payroll takeovers regularly. We review the current state of 1C payroll, check all employee records for errors, recalculate any outstanding obligations and take over from the agreed date. Transition is typically completed within 2–3 weeks.

Yes — but Russian labour law requires specific procedures for dismissal and getting it wrong creates liability. We prepare all dismissal documentation, calculate severance correctly (2 months' salary for redundancy by default), file the required SFR notifications and ensure the labour book entry is correctly made. We recommend engaging us before a dismissal decision is finalised.