According to Federal Law No. 167-FZ as of December 15, 2001 “On Compulsory Pension Insurance in the Russian Federation”, persons covered by mandatory pension insurance are “citizens of the Russian Federation permanently or temporarily residing in the territory of the Russian Federation, foreign citizens or persons without citizenship, as well as foreign citizens or stateless persons (with the exception of highly qualified specialists in accordance with the Federal Law N 115-FZ as of July 25, 2002 “On legal status of foreign citizens in the Russian Federation“), temporarily staying on the territory of the Russian Federation, who have entered into an employment contract for an indefinite term or fixed-term for the duration of at least six months”.
Previously (until January 1, 2012), foreign citizens temporarily staying in Russia were not subject to compulsory pension insurance, and payment amounts in their favour were not subject to insurance premiums. Starting January 1, 2012, in accordance with 212-FZ as of July 24, 2009, and 167-FZ as of December 15, 2001, foreign employees temporarily staying in Russia are recognized as insured persons on the same ground as citizens of the Russian Federation, provided they have a labour contract for an indefinite period or for a period of at least six months.
The employer is obliged to provide an insurance certificate to a foreign worker with whom he has an employment or independent contractor agreement, and within two weeks from the date of the conclusion of the contract has to get in touch with the territorial office of the Pension Fund of Russia and submit an application form on behalf of the employee. The employer is obliged to submit quarterly information to the Pension Fund (data on the years of experience, income, accrued and transferred foreign employee insurance contributions) about each insured person no later than the 15th day of the second calendar month following the reporting period.
According to Russian legislation, the rate of insurance contributions to the Pension Fund of the Russian Federation is 22% of the total payments and other remuneration to a foreign worker under the employment contract up until an income of 512,000 roubles (after this amount 10% is paid). Insurance premiums are not charged on a contract of temporary foreign nationals. And contributions to the Social Insurance Fund and Federal Compulsory Medical Insurance Fund are charged only from the incomes of foreign citizens temporarily or permanently residing in the Russian Federation.