Pension contributions for foreign workers in 2016

Remuneration of foreign workers in Russia is subject to insurance premiums. Although labor migrants cannot count on receiving a Russian pension. The new tax rules, which entered into force in 2016, have made hiring foreigners less profitable for employers.

What do insurance premiums for foreign citizens depend on?

Rates and the procedure for calculating insurance premiums depend on the status of a foreigner in the Russian Federation. They may be as follows:

• permanent residents - foreigners with a residence permit;

• temporary residents - foreigners with a temporary residence permit;

• temporarily staying - foreigners with a migration card.

These categories of citizens are subject to assessments. If a foreigner is a highly qualified specialist, special conditions for calculating insurance premiums apply to him. The size of his annual income should be more than 1 million p. in year. For the remuneration of a temporarily staying highly qualified specialist, contributions to the FIU and the FSS are not paid.

Insurance contributions to the FIU from foreigners in 2016

Since 2015, contributions to foreign workers have been assessed from the first day they work in the Russian Federation. Previously, there was a rule according to which contributions for temporarily staying migrants were not charged until they reached a six-month stay. This made the use of foreign labor more profitable for the employer than the attraction of Russians.

In 2016, contributions are not accrued only on the salary of temporarily staying in the Russian Federation foreign highly qualified specialists. The remaining payments to migrants are taxed at a tariff rate of 22%.

Insurance contributions to the FSS from foreigners in 2016

Insurance contributions to the Social Insurance Fund in 2016 are charged on payments of all temporarily staying foreigners with an employment contract for a period of more than 6 months. The tariff will be 1.8%. Other categories are taxed at a standard rate of 2.9%.

Foreigners will receive the right to hospital payments. Maternity and child allowances are still not allowed to them.

Contributions to injuries must be paid for all categories of foreigners. The tariff is set individually depending on the type of company activity.