Insurance Contributions Rate for 2012

Before January 01, 2012 the compulsory pension insurance covered only foreign citizens with “temporary residence” or “permanent residence” status (cl.1, Art.7 of Federal Law N 167-ФЗ “On Compulsory Pension Insurance in the Russian Federation” dated December 15, 2001 (hereinafter – Law N 167-ФЗ)).

Since January 01, 2012 Federal Law N 379-ФЗ dated December 03, 2011 was renewed with a new category of the insured – sojourn foreigners to be included among the insured provided:

• they have a labor contract for an indefinite term or a fixed-term labor contract concluded for the period not less than six months;
• foreigners are not the expertise .

In case whatever condition is not observed, compulsory pension insurance contributions from payments shall not be due to foreign citizens with sojourn status.

The rate of insurance contributions for foreign employees will be 22% beginning from January 01, 2012. When reaching 512,000 RUR on a year-to-date basis, the salary rate of such an employee will be reduced to 10% and remain effective till the end of the year (see the Table here below).

It should be mentioned that insurance contributions to the Social Insurance Fund, as well as insurance contributions to compulsory health insurance of foreign citizens or persons without citizenship, but with Russian sojourn status, will not be paid as before. In addition, insurance contributions to the Pension Fund shall be made irrespective of the year of birth of those insured. Insurance contributions with regard to foreign citizens or persons without citizenship, permanently residing in the Russian Federation, should be paid as before depending on the year of birth of those insured.

Table
Modifications to Insurance Contributions Rate in 2012

According to Law 115-ФЗ foreign citizens with work experience, skills or knowledge in the appropriate sphere of activity shall be considered as the expertise, if they are employed in the Russian Federation for the salary (remuneration):

• in the amount not less than one million RUR per annum (365 calendar days) – for the expertise, being scientific employees or teachers, if they are proposed to carry out scientific and research or teaching activity by nationally accredited higher institutions, state academies of sciences and their regional departments, national research centers, including the expertise employed by residents of industrial production and tourism and recreation, and port special economic zones, except for individual entrepreneurs;
• in the amount not less than seven hundred thousand RUR per annum (365 calendar days) – for foreign citizens employed by residents of technology development special economic zones, except for individual entrepreneurs;
• without regard to the salary amount provision – for foreign citizens involved in the implementation of Skolkovo Project in accordance with the Federal Law “On Skolkovo Innovation Center”, except for individual entrepreneurs;
• in the amount not less than two million RUR per annum (365 calendar days) – for foreign citizens.

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