In Russia, insurance of employees against workplace accidents is compulsory and run by the state. The employer does not choose an insurance company: the insurer is the Social Fund of Russia (SFR). But compulsory insurance does not cover everything, so many companies add voluntary programmes on top. Here is how the system works and where voluntary insurance is genuinely needed.

Compulsory insurance under Law 125-FZ

The main law is Federal Law No. 125-FZ "On Compulsory Social Insurance against Industrial Accidents and Occupational Diseases". Since 1 January 2023 the insurer under this law has been the Social Fund of Russia, created by merging the Pension Fund and the Social Insurance Fund.

Who is insured

  • all employees under employment contracts — from their first day of work;
  • contractors under civil law contracts — if the contract expressly provides for the payment of contributions.

How much the employer pays

Contributions for occupational injury insurance are charged on payments to employees at a rate of 0.2% to 8.5%. The rate depends on the occupational risk class of the company's main type of activity: there are 32 classes, and the more dangerous the work, the higher the rate. The main type of activity must be confirmed with the SFR every year by 15 April; otherwise the fund may set the rate for the riskiest of the company's activities.

The SFR may grant a discount or apply a surcharge to the rate — up to 40% — depending on the injury rate and the state of occupational safety. Contributions are paid separately from the single tax payment, no later than the 15th of the following month, and are reported in form EFS-1.

What an injured employee receives

In the event of a workplace accident or occupational disease, the SFR provides:

  • sick pay at 100% of average earnings — regardless of length of service, for the entire period of illness, subject to a maximum;
  • a lump-sum insurance payment — on loss of the ability to work in one's profession (depending on its degree) or on the death of the insured person;
  • monthly insurance payments for permanent loss of the ability to work in one's profession;
  • payment of additional costs for treatment, medicines, prosthetics, sanatorium treatment and vocational retraining.

The employer's duties after an accident

  1. Arrange first aid and take the injured person to a medical facility.
  2. Preserve the scene of the accident, if this does not endanger people.
  3. Report the accident to the authorities and organisations listed in the Labour Code, including the SFR.
  4. Investigate the accident through a commission and draw up an industrial accident report.

Concealing an accident or failing to pay contributions leads to fines and late-payment interest, and without insurance the employer risks having to compensate the harm itself.

Why compulsory insurance is not enough

  • It covers only work-related accidents and occupational diseases. An injury at the weekend or on holiday is not covered by Law 125-FZ.
  • Payments are calculated from earnings and capped by statutory maximums — for high earners they are noticeably less than the actual loss.
  • The SFR does not pay for treatment at a private clinic of your choice and does not organise medical services.

Voluntary employee insurance

Accident insurance

A corporate accident policy applies around the clock — at work, at home and when travelling — and provides fixed amounts according to a benefit table for injuries, disability or death. The payment is made on top of compulsory insurance. The employer's contributions under contracts covering death and/or harm to health are deductible for profit tax up to 15,000 rubles a year per employee.

Voluntary health insurance

Voluntary health insurance (DMS in Russian) gives employees access to private clinics, telemedicine, dentistry and home visits by a doctor. Contributions under health insurance contracts concluded for at least one year with a licensed insurance company are deductible for profit tax up to 6% of payroll costs and are not subject to personal income tax.

How to choose an insurer for a corporate programme

  • Check the licence in the Bank of Russia register and ratings from Russian rating agencies.
  • Compare not just the price but the cover: a very low rate often means reduced limits and a long list of exclusions.
  • Study the accident benefit table and the list of clinics in the health insurance programme.
  • Give the insurer accurate information about headcount and staff occupations. Under Article 944 of the Civil Code, knowingly providing false information allows the insurer to challenge the contract.

Polis Re specialists can help you choose a programme for your company: see the employee accident insurance and health insurance for employees sections, other solutions for businesses, or send a request.