Belarus Global Payroll & Tax Information Guide

November 21, 2022 | 5 Mins Yana Todorova

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Payroll in Belarus – 2022 Updates

Minimum wages in Belarus increased to 457 BYN/Month (189.359 USD/month) in 2022. The maximum rate of minimum wage for employees was 400 BYN/month and minimum was 0.2 BYN/month.

From October 1, 2022, employees in Belarus will be able to opt into a pension system supported by tax incentives and employer social security system. Participation is voluntary but supported by tax incentives and the partial diversion of employer social security contributions to the new accounts if employees contribute. The system will operate in parallel with existing voluntary insured retirement arrangements based on endowment policies to supplement social security benefits.

Belarus Payroll – Basic Facts

The Belarusian ruble (BYN) is the official currency of the Republic of Belarus. Belarusian and Russian are both considered official languages of Belarus, but Russian is the most common language used. The payroll cycle is monthly. A common practice for companies is to offer to split the salary payment – an advance of circa 40% of the salary paid in the middle of the current month and the remainder at the beginning of the following month. The 13th salary is typical but is not required by law.

The taxation system of the Republic of Belarus features 28 taxes and duties. However, only 5 taxes are paid for regular activities (value added tax, income tax, real estate tax, land tax, payments to the Social Security Fund).

Employment relations in Belarus are primarily regulated by:

    • the Constitution of the Republic of Belarus
    • the Labor Code
    • law on trade unions
    • the external labor law and migration

Employment contracts can be drawn up for:

    • an indefinite term

    • a fixed term (not more than 5 years)

    • a fixed term for a specific piece of work

    • for the duration of seasonal work

    • a temporary period to cover the absence of the worker, whose job position remains open

In Belarus, the probationary period is 3 months. On another hand, employers of record must offer a minimum of one-month notice period. The maximum notice period that can be established is 3 months.

Income Tax

The tax year in Belarus runs from January 1st through to December 31st. There is a personal income tax flat rate of 13% for residents and non-residents.

Social Tax

- Total employee cost - 1%
- Total employment cost - 34%

Corporate Tax

The standard CIT rate is 18%. There is an increase in the standard corporate rate from 18% to 20% for companies established in the Mogilev region with effect from 1 January 2022.

Property Tax

The property tax is levied at a rate of 1% on all types of buildings and installations (including car parks).

Capital Gains Tax

Tax is withheld at 12% on capital gains realized by non-residents from sale of shares in Belarusian companies.

Withholding Tax

Dividends: 10%

When paid to a company with a shareholding of 10% or more the withholding rate will be 5%. The tax withholding rate for payments of interest and royalties will be the same 5%.

Value Added Tax

The standard VAT rate in Belarus is 20%.

Compensation and Benefits

Minimum Wage

Since July 2022 the monthly minimum wage in Belarus is 482 Belarusian rubles.

Wage payment

Employees are paid monthly or weekly, depending on the terms in the individual contract. Pay slips detailing PAYE and PRSI contributions are required after each pay period.

Hours of Work

Employees in Belarus typically work 8 hours daily and 40 hours per week.

Overtime

In Belarus overtime should not exceed 12 hours daily, 10 hours weekly, and 180 hours annually and must be paid at a rate of 100% over regular pay.

Public holidays

Official non-working days for 2022 in Belarus:

    • January 1 and 2 – New Year’s Day
    • January 7 – Christmas (Orthodox Christmas)
    • March 8 – Women’s Day
    • May 1 – Labor Day
    • May 3 – Radunitsa
    • May 9 – Victory Day
    • July 3 – Independence Day of the Republic of Belarus (Day of the Republic)
    • November 7 – October Revolution Day
    • December 25 – Christmas (Catholic Christmas).
Mandatory employee benefits

Paid leave: All employees are entitled to basic time off at least 24 days.

Sick leave: In Belarus, there is the Fund of Social Protection of Population (FSPP) which is formed from deductions from wages and sick leave is paid by it.

The amount of daily payments is calculated based on a percent of the average payment for the working day. However, some organizations have tax benefits (for example, residents of a high-tech park). In such companies, the daily payment is calculated as a percentage of the minimum wage per day for the country.

The amount of payments also depends on the type of disease:

    • For general illness or injury – The first 12 days the employee receives 80% of the average daily payment (or the minimum payment for the country per day), the next days 100%.

    • For pregnancy and childbirth – Care for a sick child up to 14 years old, a disabled child up to 18 years old. Payouts are 100% of the average daily employee payment (or from the national minimum daily payment).

Maternity leave: The maternity leave in Belarus is one of the world’s longest. The current maternity leave entitlement in Belarus is:

    • 126 days’ paid maternity leave (140 if there are medical complications or if two and more kids are born),
    • 3 years’ unpaid maternity leave during which time the job position must be kept open (the mother can resume work earlier if she wants to),
    • if another child is born during these 3 years, the maternity leave entitlement starts again.

Social leave to care for a child up to 3 years old: maximum of 3 years. During this period, the child’s mother (or another family member who is on this leave) retains a workplace.

Pension: The retirement age for women in 2022 is 58 years, for men, it is 63. The pension amount is formed from 1) Minimum pension, which is depending on age + 20% of the average salary in the country; and 2) Optional payment, which is formed by employment history, salary in the working-age period.

In February 2022 the minimum pension is 296.74 BYN (approx. 91 USD).

Unemployment: The amount of the benefit is from 32 BYN to 64 BYN (US$10 – US$20) per month. It depends on the number of weeks of job searching and total work experience.

The unemployed, who have children under 14, a disabled child under 18 years, HIV positive child under 18 years of age, or suffering from AIDS have an additional 10% surcharge. In addition, unemployed people who have three and more children or two and more disabled children, have an additional 20% surcharge.

Severance pay: Employment contracts/collective agreements set out any severance payments required. The normal standard is a minimum of two weeks of salary.

Foreign workers in Belarus

The employment of foreign citizens in Belarus is regulated by the laws on the legal status of foreign citizens and stateless persons in the Republic of Belarus, on external labor migration, and by international agreements.

Russian Federation citizens enjoy employment rights equal to those of Belarusians in accordance with the bilateral agreement signed by Belarus and Russia.

Apart from that, the Eurasian Economic Union Treaty regulates the employment of citizens of Russia, Kazakhstan, Armenia and Kyrgyzstan in Belarus and the other four countries.

Health insurance should be valid for a period of temporary stay or temporary residence of a foreign citizen in the Republic of Belarus.

Visa Requirements

In the Republic of Belarus, the following types of entry visas are provided:

    • B – transit visa, valid for up to 2 days; 
    • C – short-term visa, valid for up to 90 days;
    • D – long-term visa, valid for the period exceeding 90 days with the right to stay in the Republic of Belarus up to 90 days, unless otherwise stipulated by the international agreements of the Republic of Belarus.

Foreigners who are permanently residents can be employed under the same conditions as citizens of the Republic of Belarus, except for the activities related to belonging to the citizenship of the Republic of Belarus. That means, they do not require special work permits.

Taxes

Non-residents (who spend less than 183 days annually in the country) are taxed at the same rate as nationals, but only on their Belarusian revenues.

 

For more information about how our Global Payroll Control Platform integrates with local payroll solutions in Belarus, contact our global team today.

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