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Russia Establishes Single Contribution Basis Cap for Social and Pension Insurance for 2023 — Orbitax Tax News & Alerts

Russia has published Decree No. 2143 of 25 November 2022 in the Official Gazette, which establishes a single annual contribution basis (salary) cap for contributions for social and pension insurance in 2023. Under current rules, separate contribution basis caps apply for social insurance (RUB 1,032,000) and pension insurance (RUB 1,565,000). In 2023, a single cap of RUB 1,917,000 applies for both contributions. Based on this cap, a combined contribution rate of 30% applies on salary up to RUB 1,917,000 (2.9% social insurance, 22.0% pension insurance, and 5.1% medical insurance), and a combined rate of 15.1% applies on salary exceeding RUB 1,917,000 (10.0% pension insurance and 5.1% medical insurance)