SIF revenue assessments for foreign citizens temporarily residing in the Russian Federation
The Ministry of Labour and Social Protection of the Russian Federation defined the procedure of foreign employees’ income assessment by the Social Insurance Fund.
According to Federal Law №255 FL dated 29.12.2006 "On Mandatory Social Insurance in the event of being temporarily disabled or on maternity leave” foreign citizens temporarily residing in the Russian Federation with the exception of highly qualified specialists (HQS) and working under the terms of employment agreements, are subject to mandatory social insurance in the event of being temporarily disabled or on maternity leave.
At the same time the rate of SIF premiums with respect to payments and other remuneration of foreign workers is set at 1.8%.
According to the Ministry of Labour, remuneration paid to foreign citizens temporarily residing in the Russian Federation per civil agreements for the provision of works and services is not subject to SIF insurance premiums.
In addition, the Ministry of Labour clarifies cases whereby there are lower tariffs of insurance premiums for SIF. If the employing organization meets the following requirements, the insurance premium rate will be 0%:
- The organization-employer operates under the rules of a simplified taxation system;
- The organization is engaged in a certain type of business (for example, food production, education, construction).
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