Planned changes to insurance contribution base caps, effective 2024
28 September 2023
PAS Messenger
PAS Messenger
The Russian government has prepared a draft Decree "On the Single Base Cap for the Assessment of Insurance Contributions, Starting 1 January 2024" and presented it for public discussion. Pursuant to the proposed changes, the maximum assessment base for insurance contributions will increase from RUB 1,917,000 to RUB 2,225,000.
Given that insurance will still be charged at a rate of 30% on amounts up to the maximum and 15.1% on amounts above the maximum, the overall burden on companies will rise by RUB 45,892 for each highly paid employee.
The base cap is expected to be increased on 1 January 2024.
Given that insurance will still be charged at a rate of 30% on amounts up to the maximum and 15.1% on amounts above the maximum, the overall burden on companies will rise by RUB 45,892 for each highly paid employee.
The base cap is expected to be increased on 1 January 2024.
Authors:
- Ekaterina UkhovaPartnerPeople Advisory services
- Lyudmila SapronovaDirectorPeople Advisory services
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