Work Permits: New Rules

According to the World Bank, the Russian economy will need more than 12 million immigrants in the nearest future to offset the natural decline in the population. 

 
The highest requirement in foreign labor is demonstrated in the mining, construction and erection as well as in construction and repair sectors. 

Demand is also high for executive positions at institutions, organizations, companies and their structural subdivisions as well as for unskilled labor. 

The lowest demand is for sales personnel and merchandize promoters. In the retail sector, the quota for foreign labor falls down to 0%.

Obtaining work permits includes several stages and can take quite a long time. We recommend that in order to optimize time and labor resources employers should resort to professional services of the companies that are competent in these issues. 

 
On May 20th 2010 the President of Russia approved amendments to the Law "Concerning the legal status of foreign citizens in the Russian Federation" that significantly simplifies the procedure for work permit required by highly skilled employees.

First, to receive a residence permit, professional workers will not have to live within the Russian territory during one year.

The residence permit can be issued for the period up to 5 years (both for the employee and his family), depending on the contract made with the employer. 

Second, the most important amendment specifies that the employers who engage highly qualified personnel will not be restricted by the established quotas and they will not have to receive a permit for employment of foreign workers. However, the employer will be responsible for compulsory health insurance of such workers.

Besides, the provision has been made for the criteria, based on which an employee can be qualified as highly skilled: the employee must be a foreign citizen who has work experience, skills or achievements in the subject field, and the annual remuneration for work must be minimum 2 million rubles.

The income of a foreign citizen will be taxed at a 13% rate, which is equal to the rate set for the citizens of the Russian Federation. In comparison with many European countries, this rate is quite low. 

Quotas for employment of foreign workers do not apply to general directors of joint stock companies, associations, enterprises, etc., chairpersons of management boards and their deputies, directors of affiliates, factories, departments and some other executives, provided that these positions are included in the payroll schedule of an organization.