Important amendments to the Russian legislation on compulsory social insurance contributions

The new amendments to the law introduces an obligation for employers to pay social contributions to the Pension Fund for temporary located foreign employees (i.e. anyone on a regular work visa or that have a 3 year temporary residency permit)  having a local labor contract with the duration of not less than six months. Prior to this the salary of all expats on a work visa was exempt from this tax. From 1 Jan only foreigner who have the 3-year highly qualified specialists work visa (and permit) will be exempt.

The following rates will apply: 22% of the accumulated salary up to the threshold of 512 000 RUR and 10% from amounts exceeding the mentioned threshold.