Compulsory social insurance in Russia: what it covers

Social vs commercial insurance: the difference

The insurance market consists of companies licensed by the Bank of Russia: they sell policies and compete on terms and price. Compulsory social insurance works differently. It is run by the state, contributions are paid by employers, and the amount of benefits is set by law and does not depend on the choice of insurer.

Since 1 January 2023 most of the system has been administered by the Pension and Social Insurance Fund of the Russian Federation (the Social Fund of Russia, SFR), created by merging the Pension Fund and the Social Insurance Fund. Compulsory health insurance (OMS) is run by the Federal OMS Fund together with regional funds.

What risks the system covers

Who pays contributions

Insurance contributions for employees are paid by the employer — they are not deducted from salaries. Since 2023 a single rate has applied: 30% on payments within the single maximum base and 15.1% above it; reduced rates are provided for certain categories of payers. The maximum base is set annually by the Government. Contributions "for occupational injuries" are paid separately — from 0.2% to 8.5% depending on the occupational risk class.

Sole proprietors pay fixed contributions for themselves and may insure voluntarily against illness and maternity by signing an agreement with the Social Fund.

How benefits are calculated

Sick pay

The first three days of illness are paid by the employer, the rest by the Social Fund. The amount depends on the insurance record: up to 5 years — 60% of average earnings, 5 to 8 years — 80%, 8 years or more — 100%. Average earnings are capped by the maximum contribution base, so the benefit has a ceiling.

Maternity

Pregnancy and childbirth benefit is paid at 100% of average earnings, subject to caps, usually for 140 days. Childcare benefit up to the age of one and a half is granted by the Social Fund, and its amount is also linked to average earnings.

Since 2021 "direct payments" have operated nationwide: benefits, except for the first three days of sick leave, are transferred by the Social Fund directly to the recipient based on information from the employer. That is why it is important that the employer submits correct bank details and earnings data to the fund.

Injury at work

In the event of an industrial accident or occupational disease, sick pay is 100% of average earnings regardless of the insurance record. If professional working capacity is lost, lump-sum and monthly insurance payments are granted, and medical and social rehabilitation is paid for.

Job loss

Unlike in some other countries, in Russia unemployment benefit is not part of social insurance: it is paid from the federal budget through the employment service after registration as unemployed.

Where state protection ends

Compulsory insurance provides a basic level. Its limits quickly become apparent:

• sick pay is capped and, with a short insurance record, does not cover all income;
• OMS guarantees care under the state guarantee programme, but not private-clinic service, appointments without queues or services outside the programme;
• payments for industrial accidents do not cover injuries at home, on holiday or in sport.

These gaps are filled by voluntary insurance: DMS (voluntary health insurance) and DMS for employees, accident insurance and accident cover for staff.

Tips for employees and employers

• Check your insurance record and contributions in your personal account on Gosuslugi (the state services portal): your pension and benefits depend on them.
• Employers need to confirm their main type of activity and occupational risk class correctly — the rate of occupational injury contributions depends on it.
• If your income is above the maximum base, sick pay will not fully replace it — consider voluntary insurance.
• Corporate DMS and accident insurance help retain employees and reduce losses when key specialists fall ill.