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Bankruptcy insurance for employees

Bankruptcy insurance for employees

A new draft law defending employees in case of employer’s bankruptcy is being considered by the Russian Government. The law proposes to bring in a new social tax for employers at the rate of 0,02% of the gross salary. In case of company bankruptcy the employee can receive up to 3 monthly salaries. 

It should be noted that the law will not lead to a tax burden increase, since another social tax (sick leave insurance) will be reduced by the same 0,02%.