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Russia: Draft Law to Amend Requirements for Hiring Highly Qualified Specialists

April 18, 2022

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  • RussiaRussia

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At a Glance

  • The Russian legislature introduced a draft law that would amend procedures and requirements for Highly Qualified Specialists (HQS), which, if approved, would go into effect on September 1, 2022.
  • Proposed changes include an increased minimum salary level, penalties for non-compliant HQS employers and a new pathway to indefinite permanent residence, among others.
  • In order for the draft law to go into effect, the state parliament and Federal Council would need to review it and the President would need to sign it.

The situation

The Russian legislature introduced a draft law that would amend procedures and requirements for hiring Highly Qualified Specialists (HQS). If approved, it would go into effect on September 1, 2022.

A closer look

The draft law proposes the following key changes:

CHANGE DETAILS IMPACT
Increased minimum salary level
  • The minimum salary level would increase to RUB 750,000 per quarter (approximately USD 9,077), up from RUB 167,000 per month.
  • The reduced minimum salary level requirements for certain categories of employers (including accredited information technology companies, participants of the Skolkovo project, and others) would remain unchanged.

The increase in minimum salary level may make HQS positions in Russia more attractive to foreign nationals; however, employers should take into account the increases in their budgets.

It is unclear if the increased minimum salary level will apply only to new HQS applicants or to HQS applicants already working in Russia as of September 1, 2022.

Copy of employment contract accepted for initial and renewal applications Employers would no longer need to submit original copies of employment contracts when filing an HQS initial or renewed work permit application. Instead, a copy with the employer’s stamp would be sufficient. The new rule would provide greater flexibility in HQS application document requirements.
Elimination of requirement to provide migration registration Employers would no longer need to complete migration registration when applying for an HQS work permit. This will make the HQS work permit process faster, since registration depends on the availability of the hosting party.
Regulation of collection of HQS work permit
  • HQS would be required to collect their HQS work permit within 30 calendar days of entry into Russia, or if they applied from within Russia, 30 calendar days from the date of their work permit approval.

  • If there are acceptable documented reasons for late collection (which have not yet been defined), HQS would be able to collect their work permit after this deadline; otherwise, the work permit will be canceled.

HQS and employers would be required to check the date of approval once the work permit is ready for collection, although the mechanism to do this is not yet in effect.

It is expected that authorities will define acceptable documented reasons for late work permit collection at a later date.

Non-compliant employers prohibited from hiring HQS Employers could be prohibited from hiring HQS for two years if authorities decide that the employer has not submitted information on the calculated and transferred taxes on the income of HQS employees to the tax authorities within six months following the reported period or if they have been found to submit false information. The reporting requirements are already in effect; however, employers should be aware of the new penalties for non-compliance.
Eligibility for indefinite permanent residence HQS employees and their dependents will be eligible to obtain an indefinite permanent residence permit (not linked to work authorization) if they are employed as an HQS in Russia for two years and have resided in Russia on the basis of an HQS permanent residence permit issued for the validity of their HQS work permit. HQS employees would have an additional pathway to apply for indefinite permanent residence; currently, they can apply under the same route as all other foreign nationals. The new path would create a simplified, expedited process for HQS employees.

Background

  • Economic issues. Many of the changes are related to the state of the economy in Russia; for example, the minimum salary increase is likely a result of growing inflation in Russia. Additionally, the penalties for non-compliance allow the government to raise revenue, as it is likely that there were many employers who were non-compliant with tax payment rules.
  • Attracting highly-skilled foreign nationals. As the government seeks to attract certain types of foreign nationals, especially those who fall in the HQS category, it has implemented simplified immigration procedures and has introduced a new permanent residence category.

Looking ahead

In order for the draft law to go into effect, the law would need to be reviewed by the parliament and the Federal Council and signed by the President. There is no expected timeline for this to occur, but upon completing this process, the law will be implemented on September 1, 2022.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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  • RussiaRussia

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