26 May 2025

Hiring in Russia: a guide for Indian companies

26 May 2025

8 minutes

Where to look when hiring in Russia, how to attract Russian employees, and how to formalise their employment

Indian employers may find Russia’s labour regulations excessively formalised. Every aspect of the employment process is strictly regulated, from signing a contract to the procedures for dismissal. At the same time, the country is experiencing a labour shortage: as of 2025, the unemployment rate stands at just 2.5%. There is a pronounced lack of qualified professionals in the construction, manufacturing, transport and logistics, agriculture, and IT sectors.

Here’s what Indian companies need to keep in mind when hiring personnel in Russia.

Where to find specialists

Job aggregators. Russia’s most popular platforms include HeadHunter, SuperJob, Rabota.ru, and Avito Rabota (for IT-specific roles, see Habr Career). These platforms offer access to candidates across all specialisations and levels of expertise. Their built-in analytics tools help employers assess wage levels and competition by region and industry.

Alternative channels. When recruiting for roles in IT, marketing, design, and sales, channels on the cross-platform messenger Telegram, along with other social media, prove particularly effective. For instance, VK Rabota allows vacancies to be posted across numerous thematic communities simultaneously.

Recruitment agencies. Best suited for sourcing executives and niche specialists, these agencies provide access to candidates who do not publish their CVs on public platforms. In Russia, recruitment agency fees typically range from 10% to 30% of an employee’s annual salary.

Job fairs. Participating in events like these helps companies build brand recognition when entering the market. Venues such as the annual Jobs of Russia fair or the Employment and Career Forum are also a great way to attract young talent.

How to attract candidates

Candidates assess job offers not only by salary level and career prospects, but also by a range of additional factors.

Here are some of the key elements Russian job seekers consider when looking for employment:

Company reputation. Applicants research a company's website, read reviews online, and often rely on recommendations from friends and acquaintances.
Benefits package. This may include, among other perks, health insurance, employer-funded training, gym membership, and allowances for meals, transport, and mobile phone usage. Veronika Gadetskaya, Managing Partner at Support Partners, notes that the absence of a benefits package can make a vacancy less attractive, even if the salary is high.
Working conditions. For many job seekers, flexible working hours and the option to work remotely or in a hybrid format are advantages when choosing an employer.

Veronika Gadetskaya,

Managing Partner at Support Partners:

Foreign companies often face a number of pitfalls that can negatively affect their operations in Russia. Among other things, it’s a mistake to underestimate the local labour market's specific characteristics and overlook candidates’ preferences. Russian job seekers expect a formalised hiring process, clear employment guarantees, and a transparent system of compensation and social benefits.

Making it official

In Russia, employers are required to sign a written employment contract with each employee. This contract must outline the employee’s duties and salary, the rights and obligations of both parties, and the working schedule. For remote workers, the contract must also include a section covering remote employment.

Once the employment contract is signed, the employer assumes obligations concerning taxation, reporting, and the protection of employee rights, which are regulated by the Labour Code of the Russian Federation.

Steps for employers:

1. Register the employee with the public authorities, including the Tax Service (FTS), the Pension Fund (PFR), and the Social Fund (SIF). Employers in Russia are required to:

Pay personal income tax on behalf of their employees. In 2025, the rate for residents is 13–22%, depending on income level, and 30% for non-residents.
Pay insurance contributions. The standard rate is 30% of the employee’s salary.
Submit employment-related reports to the public authorities.
Comply with labour guarantees, including paid annual leave (at least 28 calendar days) and sick leave, business trip expenses, and maternity leave payments.

2. Maintain personnel documentation. Employers must keep employees’ personal files, time sheets, and holiday schedules on record.

3. Ensure proper working conditions. For office-based staff, employers must provide a suitable workstation, conduct occupational health and safety training, and, where applicable, arrange a medical examination. This is mandatory in sectors such as food production, catering, and cosmetology.

All these requirements apply equally to overseas companies operating in Russia. Failure to comply with employment laws can result in fines, tax claims, and labour disputes, warns Veronika Gadetskaya. The Russian courts, she adds, tend to side with employees, especially in cases involving procedural violations by the employer.

Personnel outstaffing in Russia

If an overseas company does not have a registered legal entity in Russia, it can only formalise employment relationships with its staff through an authorised representative (acting under a power of attorney). An alternative option is to “lease” employees through an outstaffing company. The essence of outstaffing is that a specialist works for a client company, but is officially employed by an outstaffing provider, which pays their salary and handles payroll and HR administration. This model is well suited for short-term projects where there is a need to quickly assemble a team in a new region or reduce administrative costs. In Russia, outstaffing services may be provided by private employment agencies that have been accredited by the Federal Labour and Employment Service.

Read this article to gain insights into maintaining business relationships with your Russian partners.

Key aspects of corporate culture to be aware of

Russia continues to follow a vertical management model with clearly defined job responsibilities. Employees are accustomed to formal procedures and predictable workflows. Transparent career progression and decision-making systems remain one of the most important non-financial assets an employer can offer. In the absence of these, internal tension among staff may increase, employee engagement may decline, and trust in the employer can be undermined.

Indian companies may need to adapt to the working environment in Russia. It is essential to establish a management system and HR policy that align with the expectations of the local market. This is the approach taken by international companies that have established a long-term foothold in Russia.