Introduction to Payroll in Belarus
In 2020, remote work won a huge victory in Belarus. The Belarusian government legalized remote work opportunities if they still meet the labor standards of regular employment. Now, the door is open for your company and others outside Belarus to hire remote workers.
You have the perfect candidate lined up, so what’s next? Payroll in Belarus is complex. The country has specific labor laws to follow. How do you do it?
Skuad has all the information you need for payroll in Belarus. We are here to simplify the payroll process and make global hiring easy.
Payroll Process in Belarus
Payroll is difficult enough, and now you have decided to add new countries into the mix. It can be a lot to put on your payroll team, but it can help to standardize the payroll process. To create a standardized payroll in Belarus, split the payroll process into three stages:
The pre-payroll phase is just that — all the research and planning you need to accomplish before doing payroll. Getting it right is important in order to pay your employees and stay compliant.
Setting up the organization
To expand hiring into Belarus, you will need to establish a business identity in the country. Belarus will have labor laws to contend with. To help your payroll team keep it straight, consider standardizing some policies. Here are the steps to take:
- Business profile: You will need to set up a subsidiary in Belarus. You start by submitting the correct documentation for your business structure. You will also need to notarize company documents, like the Memorandum of Association. Then, open up a Belarusian bank account to deposit the minimum share capital.
- Work location: Be sure to research the different cities within Belarus before you pick a location. Each city has its own subsidiary laws.
- Leave policy: Employees receive certain leave periods through the Labor Code of Belarus. They include sick leave, maternity leave, and statutory leave. It would be worth standardizing a leave policy across your company that takes these into account.
- Attendance policy: Recording work time is another policy to streamline for your payroll team. How should employees record their hours and time off? They could use timecards or biometric attendance devices.
- Statutory components: Belarusian government created the Labor Code to protect both employees and employers. Some of the statutory components are employee rights, benefits, and payroll deductions.
- Salary components: Belarus’s statutory components and your company’s policies both need to be calculated for the salary. Remember each country has its own regulations. You will need to keep them all in mind when deciding policies like wages, scheduled hours, and benefits.
- Pay schedule: Labor laws also mandate pay schedules. For instance, in Belarus, employers should pay employees no less than once per month. It is common but not required to give employees 40% of their paycheck midway through the month.
- Employee information: Last, you will need to gather employee information for deductions and pay records. Decide on their type of employment — fixed-term, seasonal, or temporary. The most common is a fixed-term contract. The first fixed-term contract can be no less than one year and no more than five. If it is extended, it can’t be less than three years, unless the employee agrees to it.
Payroll Calculation Phase
Next is the calculation phase. Your payroll team will use all the above information and policies to determine the payroll for each employee. The calculation process will differ depending on the method used.
For instance, one method is to use payroll software. The payroll team will plug in the information beforehand. Then, the software will do the calculations instantly. This will be faster and easier on your payroll team, giving them time to focus on other matters.
After the payroll is calculated, there is the post-payroll phase.
- Salary payments: This is the whole reason for going through this process — paying your employees. There are a couple of options to ensure they receive their pay. One option is to report the calculations to your bank. Another is to use payroll software that includes direct deposit.
- Payroll accounting: You should always keep an organized record of each payroll, including salaries and deductions. It will help you with filing taxes, budgeting, and proving compliance.
- Payroll reporting and compliance: The payroll team has already deducted tax and social security, but also be sure to send them to the appropriate agencies.
Contact Skuad for help understanding Belarusian labor laws.
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Payroll Processing in Belarus
The documents and laws that govern labor in Belarus are:
This is a lot to track and keep straight, especially if you have employees in other countries, too. But it doesn’t have to overwhelm you. There are payroll services that can help you employ staff in Belarus.
Payroll Processing Company in Belarus
Skuad has your back when it comes to payroll in Belarus. We are a payroll processing company, which means that we take on the payroll process. That way, you can focus on more important business aspects.
Check out how Skuad can help you.
Payroll Management in Belarus
Payroll management companies like Skuad will take care of the payroll process for you. We understand the labor laws that govern Belarus employment. We will ensure you remain compliant. Also, we will keep financial records for your employees, including incentives, gross and net salary, and payslips.
Payroll Compliance in Belarus
Payroll compliance in Belarus means abiding by the country’s labor laws. These laws cover subjects like taxes, employee benefits, and social security. You will need to stay compliant. If you don’t, you may receive fines or penalties.
Payroll Components in Belarus
So, what payroll components in Belarus do you need to know? Let’s take a look at some of them:
As of 2022, the Belarusian minimum wage increased to 457 Belarusian rubles (BYN) each month. That would convert to about 136 USD or 127 EUR. However, you want to also provide salaries that are competitive with other companies. See some of the average wages in Belarus.
Belarus considers a full-time workweek to be 40 hours long. These hours are usually split into eight-hour days.
Your employees can work over the full-time schedule if they agree to it. However, they should not exceed:
- 12 total hours per day
- 10 overtime hours per week
- 180 overtime hours per year
If employees work overtime, they are entitled to double their regular pay. An alternative to paying overtime is giving time off.
Your payroll team should deduct the following social security contributions in Belarus:
- 28% pension fund
- 6% health insurance
- .03–.09% Workers Injury benefits
When your Belarusian employee is sick or injured, they can receive sick leave. In Belarus, they get 80% of their regular pay for the first 12 days. If they need more days after that, it is 100% paid by social security.
Employees who are pregnant receive 18 weeks of maternity leave. If there are complications or multiple births at once, she will receive two more weeks, for a total of 140 days. These leaves are fully paid.
Also, mothers can take three years of unpaid leave after birth without fear of losing their job. Employers must keep the job available for them whether they decide to take the three years or come back earlier. If the employee gives birth again during this time, the three-year period resets.
With the 2020 amendments, the Labor Code now entitles partners to also receive leave. Partner or paternity leave consists of 14 days within the first six months. This amendment doesn’t require the leave to be paid, but it is becoming more common to be paid leave.
Employees in Belarus should get the following national and religious paid holidays off:
- New Year’s Day
- Orthodox Christmas Day
- International Women’s Day
- Labor Day
- Victory Day
- Independence Day
- October Revolution
- Christmas Day
Other than some exceptions, most employees have a flat income tax of 13% deducted from their pay, regardless of their salary amount.
Here are a few other labor laws that are important to know:
- Statutory leave: Employees receive 24 paid days of statutory leave each year.
- Family care leave: Employees may take time off to care for sick children under the age of 14 and disabled children under 18.
- Bereavement leave: Employees are entitled to two paid days off when a close family member passes away.
- Business trip restrictions: Belarus law restricts mothers of children under three from going on business trips.
This is an overview of the payroll components in Belarus. Learn more about payroll compliance in Belarus now.
Take a moment to consider everything you must do for payroll in Belarus. It is a large undertaking but fully worth it for the right candidate. Still, creating a subsidiary is a big expense.
If you aren’t ready to register a subsidiary, payroll outsourcing in Belarus is another option. Skuad is a payroll solution that is here for you. We will maintain compliance with labor laws so that you can focus on your business. Request a demo with Skuad today.