Employee Benefits in Russia 2024

Employee Benefits in Russia 2024

Summary

The report provides in-depth industry analysis, information, and insights of the employee benefits in Russia, including an overview of the state and compulsory benefits in Russia, detailed information about the private benefits in Russia, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Russia.

Russia underwent major economic and political change following the collapse of the Soviet Union in 1991. During this two-decade transition period, several changes were made to the country’s social security system, including the development of private employee benefit plans, the establishment of a three-tier pension system, and the setting up of cost-of-living compensation.

The current geopolitical situation in Russia is causing significant stress and anxiety for the Russian as well as MNCs’ employers. Companies in Russia are still conducting their operations. Many employers in Russia had to shut down their work sites in affected areas or have relocated their staff to a safer place. Although Russian employers must evaluate ways to make payroll and to provide benefits to their employees directly or indirectly as the US and many other countries have restricted their financial transactions with certain Russian banks.

• The restrictions on international financial transactions will make it tough for MNCs based outside of Russia to pay their Russian employees.
• Due to employers’ inability to pay their employees, MNCs will be forced to consider options such as putting employees on unpaid leave, mass layoffs, or even ceasing all operations in Russia.
• Employers may want to have foreign employees work remotely while in Russia, but doing so exposes them to risks under Russian immigration, tax, and employment laws.

Key Highlights

• The Ministry of Labor and Social Protection, Federal Services for Labor and Employment, The Pension Fund of the Russian Federation, Social Insurance Fund of the Russian Federation, Ministry of Healthcare, Medical Insurance Fund organizations are responsible for the functioning of the overall social security system.
• A person’s national insurance contribution is determined based on their income.
• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to credited contribution.
• In Russia, employers provide voluntary retirement benefits to their employees through voluntary pension insurance.

Scope

This report provides a detailed analysis of employee benefits in Russia -

• It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits
• It covers an exhaustive list of employee benefits, including retirement benefits, Short-term sickness benefits, medical benefits, workmen's compensation insurance, maternity and paternity benefits, family benefits, Long-Term Care Benefits, Minimum Resources Benefits, unemployment, leaves and holidays and private benefits
• It highlights the economic and regulatory situations relating to employee benefits in Russia

Reasons to Buy

• Make strategic decisions using in-depth information related to employee benefits in the country
• Assess employee benefits of the market, including state and compulsory benefits and private benefits
• Gain insights into the key employee benefit schemes offered by private employers in the country
• Gain insights into key organizations governing employee benefits market, and their impact on companies