Recent developments in Russia
We understand the challenges of keeping up with regulatory changes. That’s why we actively monitor these changes, so you don’t have to. Read on to discover what’s been happening in the employment landscape in Russia.
Minimum wage increase (2026):
Russia’s federal minimum wage is set to increase to RUB 27,093 per month from 1 January 2026, which may affect payroll costs, salary floors, and related calculations tied to statutory minimums.
New legal ground to terminate foreign employees to meet regional quota limits (2026):
A law entering into force on 1 March 2026 expands employers’ ability to terminate employment contracts with foreign workers in order to comply not only with federal quota limits but also regional restrictions on the number of foreign employees. This is a material compliance point for workforces relying on migrant labour.
Tax and VAT reform measures impacting employment costs and HR budgeting (2026):
Russia’s 2026 reform package has included/been accompanied by measures such as a VAT rate increase to 22% and adjustments to thresholds affecting smaller businesses, which can indirectly impact employment cost structures (pricing, budgets, contractor rates, and cost-to-serve for labour-intensive services).
Introduction of a “Pillar 2” style minimum effective profit tax for large groups (2026):
Russia has moved toward a minimum effective profit tax (15%) concept starting 2026, aimed at large groups (similar in concept to the OECD Pillar Two approach). While this is not “employment law,” it can affect total labour cost strategy, restructuring decisions, and location planning for large employers.
Migration policy concept for 2026–2030 with a stated focus on tighter employer responsibility (2026 onward):
A new migration policy concept for 2026–2030 signals a tightening approach to employer responsibility and enforcement risks for illegal employment / documentation issues, including the expectation of stricter liability frameworks.
