Global Payroll 2023:
Trends & Recession Readiness
14th December, 4pm GMT
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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.
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:
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.
Official non-working days for 2022 in Belarus:
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:
Maternity leave: The maternity leave in Belarus is one of the world’s longest. The current maternity leave entitlement in Belarus is:
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.
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.
In the Republic of Belarus, the following types of entry visas are provided:
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.
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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14th December, 4pm GMT