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Russia has enacted major changes to Federal Law No. 115-FZ that impact the way the country deals with foreign employment and foreign worker compliance. The new framework imposes a tougher regime of monitoring on regular migrants, and increases financial thresholds for highly-skilled foreign professionals. The few reforms that are expected to affect will impact employers, expatriates and multinational companies doing business across the region.
For companies with international staff, these modifications underscore the critical role of transparent payroll practices, proactive compliance, and planning for your workforce.
Automated Income Verification and the 15-Day Departure Rule
One of the most prominent was the linking of statistical data by the Federal Tax Service and the Ministry of Internal Affairs. Now, officers will automatically match an officially declared income with immigration records to ensure foreign workers have the prescribed regional income.
Should a worker report not having a taxable income or report income less than the legal minimum the right to work may be deleted or lost. In such a case the worker and all the dependent minor children are required to leave from Russia in 15 calendar days, hence to ensure accurate reporting of payroll, it is crucial for both employers and workers.
Higher Salary Thresholds for Highly Qualified Specialists
The reforms also raise the thresholds of salaries needed for those seeking a visa under the highly qualified specialist category. Nowadays, the minimal salary of general employees of the corporate HQS will be 717 000 rubles per month, and the salary of researchers, academics and stipend owners of technical specialisations is no less than 358 500 rubles per month.
Multinational companies will likely need to regularly review salary packages to ensure they comply with these salary thresholds as they will be updated each year.
New Rules for Dependents and Employer Responsibilities
The provision puts more onus on foreign workers to prove they have sufficient income from the government and each dependent family member. This is to make sure that all dependents are catered for on a proven income basis and not through informal means.
Furthermore, the automatic immigration of children stopped when they reached 18. They have to obtain an independent visa or work permit or study authorization in 30 days or depart the country. For employers who are responsible for managing expatriate assignments, it is important to communicate these deadlines in advance to those employees impacted.
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What Businesses Should Do Next?
With the new laws in Russian effect, organizations needing foreign nationals to work in Russia must re-evaluate their payroll requirements, employment contracts and immigration procedures under the new laws. Keep in mind that the benefits you receive will only count if they’re officially reported and your wages are not paid in cash or other undisclosed forms.
HR departments also need to review the compensation of their expatriate employees, the documentation requirements for dependents and visa renewals. By planning ahead, significant disruption to operations will be prevented and employees supported in the transition to the new regulations.
FAQs
What is the aim of Russia’s new foreign worker legislation?
Changes in the law go towards establishing stricter immigration compliance rules including linking tax reporting to the eligibility for work permits, salaries for highly qualified specialists and verification of foreign workers income with respect to their ability to sustain themselves and their dependents.
What if the foreign worker is not earning the necessary income?
If the records of the appropriate public agencies reveal that insufficient income or no income was taken up, the worker’s permit would be revoked or be turned down. The person and his/her dependent minor children must exit from Russia within 15 calendar days.
What impact do the new rules have on multinational employers?
To comply with the new regulation, multinational companies need to ensure salaries are up to the new legal standards, make correct payroll reporting, check expatriate contracts, monitor dependent visa requirements, etc.
