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Employee Arrangement in Russia

FOXX offers personnel administration for companies doing business in Russia. The employees can work in any part of Russia and in any kind of job assignments. They may be involved in selling activity or work as welders in the oil and gas pipeline projects. This is outsourcing. FOXX also recruits personnel in Russia. 
Category: General
Posted by: Foxx

Especially in sales and marketing a good command of English language is a "must". Employees in "New Russia" have a good formal training from various kinds of universities and insitutes. Their typical age is from 22 years to 40 years.

Bonus system a a part of salary is very common. Especially in any kind of marketing and sales activity. The bonuses are from 30 to 50 percent of the total income. At the same time the base salary may be relatively low.

Personal income tax is always flat rate 13%.

The social taxes and insurance funds are then a totally different ball game!

The Regressive System of Social Funds is quite new in Russia. It starts from 26,2%. After reaching on annual calendar year basis a level RUR 280.000 it drops toleveol 10,2%. Again when reaching level RUR 600.000 it drops to level 2,2%. And next calendar year it start again from 26,2%.

The Russian Social Funds consist of four parts: 1) Savings Part of Pension Fund, 2) Insurance Part of Pension Fund, 3) Social Medical Insurance Tax, and 4) Accident Insurance Tax. All of them are different in the three groups of Regressive System. They are twelve! And in addition to this the Prension Fund percentage is diiferent depending if a person in born after 1968 or before 1967. This is a difference 6% and 8%.

All social taxes and income taxes must be reported to various (!) government and tax agencies every month, and a full scale format report quarterly every three months, and again a full year all-covering report to all officials. 

The personnel administration with income tax and various social funds is very byrocratic and time consuming. It gets expensive to companies. It is much better to get employyes to do their own real work, not the administration only for byrocracy.

This is the very simple reason Western companies prefer to outsource their personnel administration in Russia to FOXX.

For further talks please contact FOXX`s offices and people as follows:

 

Helsinki, Finland

Pirkko.Leiviska@FOXX.fi

mobile +358-50-529 1218

phone +358-9-669 692

 

St Petersburg, Russia

Natalia.Krivoruchenko@FOXX.ru

mobile +7-812-944-2989

phone +7-812-320-6837

 

Moscow, Russia

Valeri.Beliakov@FOXX.ru

mobile +7-985-865-6499

phone +7-495-650-0060