Most important changes in labor law which come into force in 2024.

Changes in the regional minimum wage from 2024

On January 1, 2024, the federal minimum wage will increase from RUB 16,242 to RUB 19,242.

The minimum wage will increase by RUB 3,000 or 18.5%.

Recall that if employees work full-time, they can not receive a salary below the minimum wage (part 3 of Article 133 of the Labor Code).

Therefore, if the employee’s salary is below the minimum wage (minimum wage in the subject of the Russian Federation), the employer is obliged to pay the appropriate amount so that the salary taking it into account was not lower than the minimum wage (minimum wage in the subject of the Russian Federation).

This can be done in different ways:

  • increase the salary,
  • set or increase the supplement to the minimum wage,
  • revise other parts of the salary.

All changes should be recorded in the staffing table.

According to the Labour Code of the Russian Federation, the federal minimum wage must be compared with the regional one. It is set by the constituent entities of the Russian Federation by local agreements on minimum wages.

In Moscow, for example, the minimum wage is 24,801 rubles, in St. Petersburg – 25,000 rubles.

The exception is if the minimum wage is higher than the minimum wage in the region. In this case you should be guided by the federal minimum.

Work with remote workers

Single rate of personal income tax for remote (remote) workers.

A single income tax rate will apply to remote workers who have lost their resident status but continue to work for a Russian company. The personal income tax rate for employees who are tax residents of Russia and remote workers has been equalized and will be 13 or 15%.

It should be recalled that personal income tax should be paid at the rate of 15% on income over 5 million RUB, and the standard 13% on lesser earnings.

The same rate – 13% or 15% – will apply to contractors under a contractual agreement if they work from abroad and use the Internet or Russian infrastructure.

On a side note! Income from sources in Russia will include all payments under employment contracts with Russian organizations or separate subdivisions of foreign companies registered in Russia. The exception is a separate subdivision of a Russian organization registered abroad.

The changes will come into effect for full-time remote workers from January 1, 2024, and for performers under a contractual agreement from January 1, 2025.

Reimbursement of internet and equipment costs to remote workers

From January 1, 2024, part of compensation payments which a company transfers to remote workers should be subject to personal income tax.

This concerns compensation for the use in work of a remote worker’s property – equipment, software and hardware, information protection means, etc.

A limit has been introduced under which only that part of it which does not exceed 35 RUB per day may not be subject to personal income tax. In 2024, personal income tax will have to be withheld from excess amounts if the employee does not confirm the expenses with documents, in accordance with amendments to the Tax Code of the Russian Federation (paragraph 12, point 1, Article 217 of the Tax Code in the future wording).

The amount of daily subsistence allowance and field allowance which is not subject to contributions

From January 1, 2024, the amount of per diem and field allowance payable to employees whose permanent work is carried out on the road or is of a traveling nature, as well as allowances when working on a rotational basis in lieu of per diem, is set as non-taxable.

The limits amount to RUB 700 per day when performing work (being on the move) in the Russian Federation and RUB 2,500 abroad.