NEW OFFICE IN MONGOLIA

Juralink has opened a new office in Mongolia. From there we may advise you on a broad range of legal issues.
For more information, you may refer to Juralink Mongolia.

CHANGES IN LEGISLATION ON COMPULSORY SOCIAL SECURITY

On the 23rd of November 2011, the State Duma of the Russian Federation adopted amendments to several legal acts regulating compulsory social security. These amendments will become effective on the 1rst of January 2012.

Perhaps one of the most significant amendments is the change of the overall rate of compulsory social security contributions. Namely 30% as of 2012. To remind you: at present the overall rate for compulsory social security contributions is 34%. In the same manner as now there will be some exceptions where the lower rates shall be applicable.

Moreover, in 2012 employers will be obliged to pay an additional contribution to the Pension Fund of the Russian Federation for employees whose salary exceeds the amount of 512,000 rubles. The total amount of these contributions shall be calculated at a rate of 10%.

A number of changes directly concerns foreign citizens* temporarily located in the Russian Federation. The salary of foreign citizens working in Russia will be subject to compulsory security contributions to be paid to the Pension Fund of the Russian Federation if these employees are working on the basis of a labour contract for an indefinite term or for the period of six months and more. This rule shall not be applicable with respect to employees who have obtained the status of highly qualified employees pursuant to Russian legislation (Article 13.2. of the Federal law "On Legal Status of Foreign Citizens» № 115-FZ dd 21.06.2002).
 

* The term "foreign citizens" shall also include stateless persons here.

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