Russian Labor Code may increase extratime limits

The Russian government has prepared amendments to the Russian Labor Code that will raise overtime limits for those seeking higher earnings, according to RIA Novosti. The bill also proposes allowing small and medium-sized businesses to increase the number of employees on fixed-term contracts and protecting employers from certain abuses.

According to the Ministry of Labor, the Russian labor market needs to replace 12.2 million people by 2032, taking into account both new jobs and retirements.

One of the key proposals: doubling the maximum overtime an employee can work in a calendar year to 240 hours.

Currently, overtime hours cannot exceed 4 hours over two consecutive days or 120 hours per year, with a few exceptions. In most other countries, overtime limits range from 240 to 560 hours per year. The bill's authors anticipate that the increase in overtime hours will primarily affect fast-growing industries, mainly manufacturing and mining.

According to the Russian Labor Code, the first two hours of overtime are paid at no less than time and a half, and subsequent hours at no less than double.

According to surveys conducted as part of the bill's preparation, 90% of employees are willing to work overtime for additional pay; however, not all overtime is processed due to the limited number of overtime hours permitted under the Russian Labor Code. Therefore, the proposed changes will bring such workers out of the shadow economy, thereby helping to ensure GDP growth and increasing tax revenues.

Author: Elina Akhmetova