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Amendments to certain legislative acts on compulsory social security

June 30, 2014

Vladimir Putin signed Federal Law On Amendments to Certain Legislative Acts of the Russian Federation on Compulsory Social Security.

The Federal Law is aimed at specifying and improving legal regulation of calculation, payment and administration of contributions paid to compulsory pension insurance, compulsory social security, compulsory medical insurance, and compulsory social insurance against industrial accidents and occupational diseases.

In particular, the Federal Law sets forth that, starting from 2015, foreign citizens and stateless persons temporarily residing in the Russian Federation shall be considered insured for compulsory pension insurance purposes from the moment an employment agreement with such person is signed and regardless of the type or term of such employment agreement.

This measure aims to prevent evasion from making regular contributions to the Russian Federation Pension Fund, at strengthening employee pension guarantees and at levelling out the labour market as payment of contributions to the Russian Pension Fund by employers of Russian citizens and employers of foreign citizens shall become the same.

June 30, 2014