Maternity pay and sick pay in Russia

The maximum amounts of maternity pay and sick pay payable in Russia from the Social Insurance Fund remain unchanged for 2003 according to the recently enacted federal law "The Russian Federation Social Insurance Fund Budget 2003" (the "Federal Law") dated 8 February 2003.

The maximum amount an employee is entitled to receive from the Social Insurance Fund for maternity or sick leave is 11,700 rubles per month (approximately US$374). Employees are entitled to these payments regardless of the level of their salary, thus if an employee's salary is higher than US$374, she/he will be still only be entitled to receive the maximum amount of US$374 from the Social Insurance Fund. The Federal Law, however, does not limit employers' rights to pay larger amounts of maternity and sick pay to employees, but any sum over and above the statutory amount will be payable by the employer.

Such low levels of maternity and sick pay reflect the decrease this year in the Social Insurance Fund budget. Contributions by those who pay the Social Unified Tax have been cut from 5.4 per cent to 4 per cent this year.

Maternity and sick pay is payable in accordance with the Federal Law from 12 February 2003, the date of the official publication of the Federal Law.

In general, women are entitled to 20 weeks' maternity leave (if there are no complications at childbirth) - 10 weeks before the birth and 10 weeks after it. The Russian Labour Code guarantees full maternity rights for women, including the right not to be dismissed during pregnancy, the right to maternity leave and the right to return to work after maternity leave.

For further information please contact David Griston at [email protected] or on 00 7 095 2585000.