Accounting, Payroll, Tax & Legal since 1989

Payroll taxes and cost of employment in Belarus

Some of the most important information for foreign investors when considering investment projects in countries concern the cost of labor and employment. We put together here a quick guide to payroll taxes and other employment costs in Belarus.

In general, the payroll tax structure is similar as in other countries in the region. The social contribution the employer pays from the employees´ gross salary is higher than in most neighboring countries due to the comparably heavy public sector.

For a standard limited liability company the payroll tax structure in Belarus is as follows (for convenience, we include as example a salary of 1000 units).

Employee´s monthly gross salary in their employment agreement: 1000 units

The company is liable to pay the following taxes:

-         Compulsory social security contribution 34 %

-         Contribution for compulsory insurance 0,6 %

Total company cost per month: 1346 units

The employee is liable to pay the following taxes (employer usually takes care of these on the employee´s behalf)

-         Personal income tax 13 %

-         Compulsory social insurance/pension contribution 1 %

Total net salary received by employee: 860 units

In case the employee is working in a specially designated employment sector where they face for example risks to health, the employer may additionally be liable for a 9 % professional pension insurance contribution. This is the case for example for professional sportsmen and the mining sector.

It is interesting to know that some of the contributions are capped, which comes into play if an employee is very well compensated. For example, the 34 % social contribution is capped at the Belarusian monthly wage times five (approximately 3000 USD). The personal income tax of employees, 13 %, is not capped.

In our next release we will take a look at some of the special employment tax regimes, most interestingly for foreign investors the High-Tech Park where significantly lower caps to tax contributions result in potentially very beneficial tax savings for IT firms.


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