How to hire remote employees in


If you’ve found someone you’d like to hire remotely in Russia, you’re in the right place. In the next few minutes, we’ll teach you how to hire in Russia (without getting yourself wrapped up in thousands of dollars of legal red tape).

Country snapshot

Russian Ruble (RUB)

What to know before you hire in 


No matter where you’re based out of, we can tell you one thing: Russia has different labor laws than your home country (unless your home country is Russia, that is). If you don’t do things right, you’ll be putting your company at the risk of fines—and risk losing the talent you brought onboard. Fortunately, doing things right is pretty easy if you take the right route.

If you want to successfully hire in 


, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 


. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 


 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 


Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 



It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 


 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

Can be less risky than hiring employees

Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 



If you’re hiring contractors in 


, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 


Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 


If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Russia than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Russia

Taxes in 


Employer tax

Employer Contributions

  • 30.02%

Individual tax


Paid Time Off (PTO)

28 calendar days per year, all unused days are carried over.    

Employees may be entitled to additional paid leave if they work in harmful and dangerous working conditions, have irregular working hours, work in the far North regions and in some other cases stipulated by the law. 

Public Holidays

There are 7 public holidays.

Sick Days

Sick leave allowance is paid by the employer for the first 3 days of sickness and by the Social Insurance Fund from the 4th day onwards.   

Sick leave allowance varies depending on the overall length of service, but it does not exceed 2,301 RUB per day. 

Maternity Leave

Maternity leave is paid for 140 calendar days and additional paid childcare leave till the child reaches the age of 18 months. The allowance is covered by the Social Security Fund. 

Paternity Leave

Paternity leave falls under parental leave.

Parental Leave

The relative or guardian who takes care of the child can take paid parental leave till the child reaches the age of 18 months. The allowance is covered by the Social Security Fund.  

Only one parent can take the childcare leave. 

Other Leave

Study leave: Employees gaining higher education are entitled to 40 days paid leave during the first two years of study and 50 days paid leave during consequent years of study. The allowance is paid by the Employer.


Termination Process

Labor contracts can be terminated on the following grounds:

  • Mutual agreement of the parties
  • Expiry of the fixed term contract
  • At employee’s initiative;
  • At employer’s initiative – reasons are limited by legislation (e.g. staff reduction, if employee fails to fulfill hisher working duties or absent without good explanation, the company’s owners change (applicable only for director, chief accountants and deputies etc)

All termination settlements are to be finalized during the employee’s last working day.

Notice Period

  • 3 days’ written notice is mandatory when terminating due to probation period failure.  
  • 3 days’ written notice is mandatory when terminating due to the expiry of the fixed term contract 
  • Indefinite employment agreement- 2 week’s written notice is required when the employee initiates the termination of the employment agreement 
  • Termination due to redundancy or liquidation- 2 months’ written notice is required 

Severance Pay

When terminating due to staff redundancy or a company’s liquidation, severance pay is one month’s salary plus payment of their average month’s earnings for a 2-month period post dismissal when the employee is searching for alternative work.  

If the employee fails to find an alternative job after two months, they can obtain a letter from the Employment Fund which entitles them to receive an additional month’s salary.   

When termination is a result of the employee’s refusal to transfer to a different available position within the company or due to the loss of the ability to work (additional reasons might also apply), two weeks’ salary is paid.   

Probation Period

The probation period is 3 months. It can be extended to 6 months for directors, chief accountants, and their deputies.

Employee requirements in 


Working Hours

Full-time employment is considered 8 hours per day and 40 hours a week.


Hours worked over 40 hours per week are considered as overtime and are paid at a higher rate. Overtime should not exceed 4 hours in 2 successive days and 120 hours per year.  

Overtime is paid at a rate 150% of the regular pay rate for the first two hours and at 200% for all subsequent hours worked within a day.   

When an irregular working regime is stipulated in the contract, overtime is compensated by additional paid leave and cannot be less than 3 calendar days per year.   

Work during weekends and on public holidays is paid at a minimum of 200% of the regular pay rate. However, the employee can agree to be compensated by receiving regular pay plus an additional day off. 

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