PEO services in Belarus

PEO (Professional Employment Organization) services in Belarus

In cases where your company plans to hire employees in Belarus, there is an opportunity to work with a local intermediary company. This option allows you to legally hire employees, control human resource expenses, and optimize personnel efficiency. We also provide Professional EOR services in Belarus. Click here to find more information on EOR services in Belarus.

Quick Start with PEO

PEO (Professional Employment Organization) is a company that enters into a co-employment relationship with your company, taking on many of your HR responsibilities. Our reliable professionals will advise your company on the employment of local staff, organize hiring, and provide ongoing support in accordance with Belarusian legislation.

Advantages of PEO:

  1. We can help you find candidates for key roles and select suitable staff: we will post job announcements that comply with legal requirements on local internet platforms and conduct candidate selection. If needed, we can provide experienced recruiters who can assess candidates’ competencies.
  2. We will prepare documents for hiring employees in accordance with Belarusian labor laws, as our professionals have the necessary expertise in this field.
  3. You won’t need to search for payroll specialists, as we will automate such calculations and provide you with periodic payment reports.
  4. We will open bank accounts for transferring employees’ salaries.
  5. We will organize mandatory state insurance, sick pay, and benefits for employees in accordance with Belarusian legislation.
  6. We will calculate and withhold taxes from employees’ salaries.
  7. We will organize the necessary safety training, as the absence of which may result in fines.
  8. We will prepare the required local documents, such as bonus regulations, internal labor regulations, safety instructions, and more.
  9. If necessary, we can organize mandatory medical examinations for employees.
  10. We can establish a voluntary pension insurance system and other preferential payments to help retain valuable employees.

General Information on Employment in the Republic of Belarus

The Labor Code of Belarus (hereinafter referred to as the LC) prohibits discrimination in employment. Discrimination includes giving preference or imposing restrictions on employment based on gender, race, national and social origin, language, religious beliefs, age, place of residence, and other circumstances unrelated to employees’ qualifications and job functions. For such reasons, it is not permissible to refuse employment or specify them as preferences in job advertisements.

Legislation prohibits the employment of certain individuals in certain cases. In such cases, refusal to hire is not considered discrimination. For example, individuals aged 14 to 16 cannot be employed without the written consent of one of their parents (adoptive parents, guardians). Individuals without the required education cannot be employed in jobs that require specific qualifications.

Penalties are imposed for unjustified refusal of employment.

Documents for Conclusion of an Employment Contract

The list of documents required for employment is established by Article 26 of the LC. This includes a passport of a citizen of the Republic of Belarus (obtained from the age of 14 onwards, but it can be obtained earlier) or a residence permit in the Republic of Belarus, which is issued to foreign citizens.

For conscripts and those subject to military service, documents related to military registration are required. In the Republic of Belarus, it is also mandatory to provide a labor book for all employees, except for those who are applying for their first job and part-time workers (employees who work elsewhere).

To secure employment, a document confirming education or training, which grants the right to perform a specific job, and a state social insurance certificate are required.

While it is not mandatory to have the hired employee write a job acceptance statement, it can be requested for documentation purposes.

An employment contract is concluded in writing in two copies in the Republic of Belarus. One copy is given to the employee, and the other is kept by the employer. The employment contract specifies the starting date of work. The employment contract becomes effective from this date. After concluding the employment contract, an order for employment is issued.

Depending on the duration, there are several types of employment contracts:

  1. Employment contracts concluded for an indefinite period. The end date of such a contract is not known in advance and is not specified in the contract. Such a contract is considered open-ended.
  2. Fixed-term employment contracts, concluded for a period of up to 5 years. Contracts of this type include contracts. In a contract, it is obligatory to include conditions for salary payments at least once a month (in an employment contract, the condition is to pay the salary at least twice a month). Although in practice, contracts often include a condition for salary payments twice a month. The contract must specify the employer’s obligation to notify the employee in writing no later than one month in advance regarding the decision to continue the employment relationship, terminate the employee, or conclude an employment contract for an indefinite period. There are other mandatory conditions in the contract required by Belarusian legislation.

Duration of Working Time in the Republic of Belarus

The full norm of working time cannot exceed 40 hours per week. This norm is the same for both five-day and six-day workweeks. It is possible to establish a shorter duration of weekly work in a local document, but not a longer one.

Reduced working time is established for specific categories of employees due to age, health condition, work in hazardous or dangerous conditions, and other features of employment. For example, employees with disabilities of the first and second groups are subject to a maximum working time of 35 hours per week.

Part-time work is reduced compared to the normal working time. There is no limit to part-time work. It is possible to establish part-time work for an employee by reducing the number of working hours, reducing the number of working days, or both simultaneously.

The Ministry of Labor and Social Protection of the Republic of Belarus establishes the calculated norm of working time for each year. For the year 2023, the calculated norm of working time was established by the decree of the Ministry of Labor and Social Protection dated November 2, 2022, No. 67. For a full working time (40 hours per week):

  • For a five-day workweek with weekends on Saturday and Sunday: 2011 hours.
  • For a six-day workweek with a weekend on Sunday: 2014 hours.

The norm is calculated based on:

  • A five-day workweek with daily working hours of 8 hours on workdays and 7 hours on workdays immediately preceding holidays.
  • A six-day workweek with daily working hours of 7 hours from Monday to Friday, 5 hours on Saturday, and 6 and 4 hours on workdays immediately preceding holidays, respectively.

A list of state holidays and non-working days has been established. Some urgent work can be performed on non-working days. State holidays are listed in the Decree of the President of the Republic of Belarus dated March 26, 1998, No. 157. These include New Year (January 1 and 2), Christmas (January 7 and December 25), International Women’s Day (March 8), Republic Day (July 3), and others.

In a five-day workweek, an employee is entitled to two days off every calendar week, usually provided consecutively. In a six-day workweek, one day off is provided. The continuous weekly rest of an employee should last at least 42 hours (Article 138 of the Labor Code). Sometimes, the government, through its decrees, moves certain working days to weekends, which fall on Saturdays.

Size of Wage in the Republic of Belarus

The lower limit of wage size is the minimum wage. The size of the minimum wage per month and per hour is established by legislation. The size of the minimum wage per month is determined by the Government starting from January 1st of each year. As of January 1, 2023, the minimum wage is set at 554 Belarusian rubles. The size of the minimum hourly wage is calculated by the employer.

The average gross wage (before tax and mandatory social insurance contributions) as of July 2023 is 1,933.1 Belarusian rubles, which is approximately 576.4 US dollars at the prevailing exchange rate.

Contributions to Belgosstrakh, the Social Protection Fund of the Ministry of Labor and Social Protection, and income tax are mandatory payments made by employers monthly. These mandatory payments are calculated based on the amounts paid to employees and individuals with whom civil law contracts are concluded.

Insurance Contributions for Mandatory Insurance of Employees and Individuals Contracted under Civil Law Contracts

In the Republic of Belarus, employers are required to insure employees against workplace accidents and occupational diseases. Workers and individuals contracted under civil law contracts working in places provided by customers are also insured. Insurance is arranged through the insurance organization Belgosstrakh. Employers pay insurance contributions, and the insurance rate is determined by Belgosstrakh.

Employers are required to make contributions for mandatory social insurance of employees. Mandatory insurance contributions include contributions to pension and social insurance. These contributions are remitted by the employer to the Social Protection Fund of the Ministry of Labor and Social Protection. Pension insurance is mandatory insurance for employees in case they reach retirement age, become disabled, or lose their breadwinner. Social insurance includes insurance for illness, pregnancy, childbirth, child care for children under three years old, among others. Contributions for pension and social insurance are calculated based on the total payments to employees and are paid as a single payment. In general, this amounts to 34% of the total payments, with 28% allocated to pension insurance and 6% to social insurance. A list of payments that are exempt from contributions to state social insurance, including mandatory insurance against workplace accidents and occupational diseases in Belgosstrakh, is established in a list approved by the Council of Ministers of the Republic of Belarus on January 25, 1999, No. 115.

Income Tax on Salary Withheld by Employers

The income tax rate on salaries and payments under civil law contracts is generally 13%. When calculating the tax amount from the gross wage, certain amounts are deducted as tax deductions. There are four types of tax deductions:

  1. Standard deductions.
  2. Social deduction.
  3. Property deductions.
  4. Professional tax deductions.

Income tax is calculated, withheld from the salary of each employee, and remitted to the budget every month when salaries are paid.

Labor Leave in the Republic of Belarus

Labor leave is granted only to employees working based on an employment contract. Individuals with civil law contracts (e.g., service contracts) are not entitled to labor leave. Labor leave typically lasts for 24 calendar days, but it can be longer. State holidays and public holidays that coincide with the leave period are not included in the leave duration and are not paid. Additional labor leave may be granted for specific reasons outlined in the Labor Code, such as non-standard workdays, long service, and work in hazardous conditions.

Employers are required to establish a schedule of labor leaves for each calendar year by no later than January 5th. The schedule determines the order in which leaves are granted to employees.

Sick Leave in Belarus

Employees are granted leave from work due to temporary incapacity when they are unable to work due to illness or the need to care for a sick family member. Temporary incapacity is confirmed by a medical certificate, which is issued by a clinic or medical center and is commonly referred to as “sick leave.” Sick leave may also be granted in cases of pregnancy and childbirth. Sick leave is issued on standardized forms, and its accuracy is verified by the employer’s accounting department.

Employers have the right to grant employees up to three calendar days of sick leave without requiring a medical certificate when there is a valid reason, as specified in the organization’s local documents. During sick leave, employees receive sickness benefits from the Social Protection Fund.

The usual calculation of sickness benefits is as follows:

  • 80% of the average daily wage for the first 12 calendar days of temporary incapacity.
  • 100% of the average daily wage for subsequent calendar days.

Sickness benefits are paid based on the workplace where the employee submits their sick leave certificate. However, sickness benefits are not always granted; exceptions are established by legislation. For example, sickness benefits are not provided for the period of unpaid leave or when caring for a sick family member during annual leave.

Contact Us

Collaborating with a Professional Employer Organization (PEO) relieves you of the responsibilities and risks associated with recruiting and hiring employees in the Republic of Belarus. Our company provides comprehensive HR services, ensuring that you have a clear understanding of your investments in your workforce. Employees will have a reliable point of contact with their employer to address their labor rights and resolve any issues.

You can reach us at +375 29 366 44 77 or via email at info@spex.by.

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