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Wage, Benefits
Amount of living wage in quarter 2 of 2020
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The living wage for the working-age population of the Russian Federation in general has been increased for Quarter 2 of 2020. The amount is set at RUB 12,392. In Quarter 1 of 2020 the living wage was RUB 11,731.
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The living wage for Quarter 2 of 2020 in Moscow has been increased (Resolution of Moscow City Government No. 1351-ПП dated 25 August 2020) to amount to RUB 20,361 for the working-age population.
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The living wage for Quarter 2 of 2020 in Saint Petersburg has been increased (Resolution of Saint Petersburg City Government No. 687 dated 9 September 2020) to amount to RUB 12,796.90 for the working-age population.
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Child support withheld in a flat amount must be reassessed starting from Quarter 2 of 2020, in the event of an increase in the living wage in a specific region. In the event of a decrease in the living wage, child support is withheld in the same amount as in the previous quarter.
Order of the Russian Ministry of Labour and Social Protection No. 542н dated 28 August 2020
Procedure for calculating the sick leave benefit using the MSW value in 2021
From 1 April to 31 December 2020, a temporary procedure for the calculation of sick leave benefits was in force:
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for a full month, an employee is entitled to at least the amount of the federal MSW (Law No. 104-FZ dated 1 April 2020);
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the amount of the benefit does not depend on the insured event, length of service and actual earnings.
The Ministry of Labour suggested that this procedure should apply on a permanent basis.
Draft Federal Law On Amendments to Certain Legislative Acts of the Russian Federation on Compulsory Social Insurance
Temporary rules for issuing temporary disability certificates for people aged 65 and older
Employers in Moscow may send registers for completion of an electronic sick leave form for insured persons aged 65 and over from 28 September 2020 to 15 January 2021. The registers are formed in the ZUP software.
Employees who switched to working distantly are not included in the register.
The sick leave shall not include the periods of:
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sick leave for other reasons,
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annual leave, unpaid leave, downtime, and other cases listed in Article 9 of Federal Law No. 255-FZ.
In accordance with Mayor of Moscow Decrees: No. 92-УМ dated 25 September 2020, No. 94-УМ dated 29 September 2020, No. 68-УМ dated 08 July 2020
PERSONAL INCOME TAX (PIT)
Special procedure for obtaining the status of a tax resident of the Russian Federation in 2020
An individual who actually stays in the Russian Federation for 90 to 182 calendar days, inclusive, during the period from 1 January to 31 December 2020, may be recognized as a tax resident of the Russian Federation in the tax period of 2020.
The status of a tax resident is not assigned automatically; to obtain it, an individual must submit an application to the tax authority of the Russian Federation.
When paying out income to an individual in 2020, a tax agent must apply the general rule on recognizing an individual as a tax resident of Russia: meeting the condition of staying in Russia for 183 calendar days or longer as of the date of income payment.
An individual will be able to return the overpaid personal income tax from the budget on their own, upon submitting an application to the tax authority for recognition as a tax resident of the Russian Federation and a tax return as per the 3-NDFL form. The tax authority will have to recalculate the tax at the end of the year and return the excess tax withheld.
Federal Law No. 265-FZ dated 31 July 2020, Article 207 has been supplemented with Clause 2.2
Lifting the ban on the offsetting overpaid taxes
From 1 October 2020, the amounts of overpaid taxes and levies may be offset regardless of their type (for example, overpaid federal taxes can be offset against arrears on regional taxes).
The tax authority has the right to make a decision on such offset without restrictions on the relevant types of taxes and levies, including the amount of taxes and/or levies overpaid before 01 October 2020.
Letter of the Russian Ministry of Finance No. 03-02-07/1/72100 dated 10 August 2020
SALARIES AND WAGES
Layoff benefits
In Articles 178 and 318 of the Labour Code of the Russian Federation changes were made to the procedure for layoff payments:
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An employee may apply to the employer for the payment of their average earnings for the period of employment within 15 working days after the end of the month in which the employee did not succeed in finding a job after dismissal. Previously, no period was defined during which laid-off employees could apply for average monthly wages.
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The deadline for the payment of the average monthly wage has been fixed. Currently, it is 15 calendar days from the employee’s application.
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A lump sum payment of the two-month average wages may be performed in advance for the period of employment, that is, for the 2nd and 3rd months after dismissal.
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Average monthly wages for the period of employment must be calculated in proportion to the period of employment in the corresponding month. Previously, employers paid the average wages in this way for the second and third months of job search. Now this approach is enshrined in the Law.
Labour Code of the Russian Federation (Articles 178 and 318)
