Social contributions for General Directors: New Rules
Starting from 2026, new rules for the payment of social contributions for General Directors of commercial organizations will come into force. According to the amendments to the Tax Code, contributions will have to be accrued even if no actual payments are made to the director.
The changes will affect situations where the head of a company (typically the General Director acting as the sole founder) receives income below the federal minimum wage (MROT) or does not receive any remuneration at all, for example, if they are on unpaid leave or manage the company without an employment contract. In such cases, the base for calculating social contributions will be determined on the basis of the federal minimum wage.
As a result, the “no payments — no contributions” principle will no longer apply. If the director performs their duties for an incomplete month or works part-time, the contribution base will be calculated proportionally to the actual period or time spent performing their duties.
These changes form part of the tax reform in the Russian Federation and represent only a fraction of the significant amendments to tax legislation that will take effect from 1 January 2026.
