COVID-19: Nationwide paid week-off and anti-crisis measures to support business and people during pandemic in Russia

COVID-19: Nationwide paid week-off and anti-crisis measures to support business and people during pandemic in Russia

27 March 2020

On 25th March 2020, President Putin made an official COVID-19 address to the nation, in which he announced a series of measures aimed at reducing the spread of the COVID-19 and lower the negative impact on the Russian economy. Among others, President Putin stated that the period from March 30th till April 3th, 2020 would be a nationwide paid week-off, which is formalized by a special Presidential Decree, and which is obligatory for everyone in Russia.

The Decree does not apply to the employees of:

  • continuously-operating organizations;
  • medical and pharmaceutical organizations;
  • organizations providing the people with food and essential goods;
  • organizations performing emergency work in urgent situations, as well as in other cases, involving the endangering the life, or normal living conditions, thereof;
  • organizations carrying out urgent repair and handling work.

Federal, regional and municipal authorities, as well as mass-media organizations shall define the minimum-necessary number of employees who will work during this nationwide, paid week-off.

The Russian President also announced the following measures to support business:

  • 6-months’ deferral of tax payments (excluding VAT) for microenterprises, small and medium-sized businesses;
  • 6-months’ deferral of payment of social contributions for microenterprises;
  • 6-months’ moratorium on filing creditors' applications for bankruptcy of companies and debt collection;
  • reduction (from 30% to 15%) of social contributions for small and medium-sized businesses;
  • tax on all offshore income payments of 15%, instead of 2%.

Moreover, the following measures to support families and unprotected categories of citizens were declared:

  • automatic renewal of social benefits for 6 months;
  • bonus payments to veterans and war workers of the Great Patriotic War, in April;
  • payment to families, eligible for maternity capital, an additional 5 000 RUB per month for each child under the age of three years inclusive, from April 1;
  • financial assistance for families, with children aged 3 to 7, will be paid from June (instead of July);
  • sick-leave pay rate and unemployment benefit will be set up in the amount of at least one minimum wage per month (12, 130 Rubles) until the end of 2020;
  • no penalties for citizens and individual entrepreneurs on consumer and mortgage loans, if their monthly income declined by more than 30%, etc.

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Practices: Labour and Employment

Note: Please be aware that all information provided in this letter was taken from open sources. Neither ALRUD Law Firm, nor the author of this letter bear any liability for consequences of any decisions made in reliance upon this information.

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