In 2022, Belarus raised the minimum wage to 457 BYN (189.359 USD) per month. Employees were paid a minimum of 0.2 BYN per month, with a maximum rate of 400 BYN per month. Employees in Belarus will have the option to enroll in a pension plan beginning on October 1, 2022. Which will be backed by employer social security and tax incentives. Tax incentives and the partial redirection of employer social security contributions to the new accounts, provided employees contribute, encourage voluntary participation. To augment social security benefits, the scheme will function in tandem with current endowment-based voluntary insured retirement plans.
Payroll in Belarus: Essential information
The Republic of Belarus’s official currency is the Belarusian ruble (BYN). Although Russian is the most widely spoken language, Belarusian and Russian are both recognized as official languages. Payroll is processed on a monthly basis. Companies frequently offer to divide salary payments, with an advance of around 40% paid in the middle of the current month and the remaining amount paid at the start of the next month. Although it is not mandated by law, the thirteenth salary is customary. There are 28 taxes and duties in the Republic of Belarus’s tax system. However, just five taxes- income tax, real estate tax, land tax, value added tax, and Social Security Fund contributions are paid for routine activities.
A temporary period to cover the worker’s absence, whose job position remains open In Belarus, the probationary period is three months. However, employers of record are required to provide a minimum of one month’s notice period, with a maximum of three months. Income Tax The tax year in Belarus runs from January 1st to December 31st. Social Tax – Total employee cost – 1% – Total employment cost – 34% Corporate Tax The standard CIT rate is 18%; starting on January 1, 2022, the standard corporate rate for businesses established in the Mogilev region is raised from 18% to 20%. The property tax is levied at a rate of 1% on all types of buildings and installations (including car parks).
Capital gains tax withholding tax dividends
10% Withholding Tax Dividends paid to a company with a 10% or greater shareholding will have a 5% withholding rate. Interest and royalties paid to a company with a 10% or greater shareholding will also have a 5% withholding rate.
Compensation and benefits minimum wage
The minimum wage in Belarus has been 482 Belarusian rubles since July 2022; employees are paid either monthly or weekly, depending on the terms of their individual contracts; pay slips outlining PAYE and PRSI contributions must be submitted at the end of each pay period.
Hours of Work: In Belarus, workers usually put in eight hours a day and forty hours a week.
Working overtime
In Belarus, overtime must be paid at a rate of 100% over regular wage and cannot exceed 12 hours per day, 10 hours per week, or 180 hours per year. A percentage of the average payment for the working day is used to determine the amount of daily payments. Nonetheless, there are tax advantages for certain organisations. In these businesses, the daily compensation is determined as a proportion of the national minimum wage. There is an extra 10% surcharge for those without jobs, those with children under 14, children with disabilities under 18, children with HIV under 18, and those with AIDS. Additionally, there is a 20% fee for unemployed individuals with three or more children or two or more handicapped children.
Workers from abroad in Belarus
The laws governing the legal status of foreign nationals and stateless individuals in the Republic of Belarus, external labour migration, and international agreements all govern foreign employment in Belarus. According to the bilateral agreement signed by Belarus, people of the Russian Federation have the same work rights as Belarusians. In addition, the employment of Russian and Kyrgyz people in Belarus and the other four nations is governed by the Eurasian Economic Union Treaty. A foreign national’s health insurance should be valid for the duration of their temporary visit or residency in the Republic of Belarus.
Taxes
Non-residents (those who spend fewer than 183 days per year in the country) pay the same tax rate as natives, but solely on Belarusian earnings.
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