By The Decree of the Government of the Russian Federation No. 1407 of 06.11.2019 from the 1st of January 2020, the limit value of personal income for the purpose of calculation obligatory insurance contributions for 2020 is revised.
Annually the base for calculation of insurance contributions is indexed, taking into account the growth of average wages in the Russian Federation.
The indexing coefficient for limit value for calculating insurance contributions for compulsory social insurance for temporary disability and maternity is established at the amount of 1,054.
The indexing coefficient for calculation of insurance contributions for compulsory pension insurance is set as the average salary in Russia increased 12 times and taken into account the increasing coefficient for 2020 at the amount of 2.2.
From 01.01.2020 the limit value base set as following:
- 912 000 Rubles for compulsory social insurance against temporary disability and maternity (865 000 Rubles in 2019). When an employee’s income achieves this limit, his salary will be exempted from compulsory social insurance against temporary disability and maternity.
- 1 292 000 Rubles for mandatory pension insurance (1 150 000 Rubles in 2019). When an employee’s income achieves this limit, an employer pays 10% of obligatory insurance contributions instead of 22%.
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