TALENTHEADS
Employer of Record in Belarus
The idea is very simple but has many names. Most of the time it´s called an Employer of Record (EOR) service, while the organization providing it may be called a Professional Employer Organization (PEO) or sometimes just an outstaffing agency. At Talentheads we mostly talk about EOR services.
If you would like to hire employees in a given country, but don´t feel it´s justified to establish your own company or other legal entity there, then EOR services are a great option. There are many reasons to start with EOR instead of your own company. There can be increased country risks or budget constraints, and generally projects where under 25 people are employed are just more economical when done through a PEO.
Our Employer of Record service works so that we hire your talent in Belarus on your behalf as employees of our Talentheads legal entity in Belarus. Your talent works for your projects, while we take care of all the legal employment matters, payroll calculations, salary payments, HR documentation and so on. Meanwhile you just pay the monthly invoice and can put your full focus on your projects.
Talentheads was born as a joint venture of two European expats who have more than 15 years of experience in operating in the legal and financial sectors in Belarus. We combine our strong local expertise in providing Employer of Record services. We don´t subcontract anything, and we won´t manage your important employment matters from abroad. We are right here to make sure that you succeed.
If you are not very familiar with Employer of Record (EOR) services or Professional Employer Organizations (PEO), then keep on reading. On this page you´ll also find information about employment practices and payroll taxes in Belarus. If you already know what you are looking for, check out our Services page or drop us an email.
Our mission at Talentheads is to make employing easy.
how does it work?
scenarios for using eor services
There are many scenarios where using a Professional Employer Organzation instead of working through your own legal entity makes perfect sense budget-wise and also helps minimize your risks as an employer.
Recently, because of the political situation, many companies especially in the IT sector have been liquidating their legal entities in Belarus and leaving the market. However, since some talent is irreplaceable and not ready to relocate, part of the team can still be employed in-country by using an Employer of Record service.
Belarusian IT specialists are well known around the world for their attention to detail and diligent approach to their work. Some of them have been working and living abroad in the U.S, the EU and other regions for a long time. Sometimes they eventually decide to return to Belarus for family or other reasons. In these cases their foreign employer abroad may choose to continue employing them via an Employer of Record service even after they move back home.
Another classic scenario is the first entry to the market by using Employer of Record. You might have found a perfect match for your talent needs in Belarus in the form of an individual or a small team, but it´s not economically viable to start your own company there at least yet. In this situation the perfect solution is to hire your talent via a PEO.
Sometimes it may be economically viable to open a subsidiary in Belarus, but the necessary supervisory board or shareholder decision to open it or just increase the company´s headcount is difficult to obtain. Employer of Record services enable you to leverage additional talent in the form of simple third party expenses, circumventing the issue.
If you recognize yourself in any of the above situations, contact us and we´ll help you.
taxes and employment in belarus
The payroll taxes borne by an employer in Belarus are easy to understand, as they are fixed rates. From the employee´s gross salary the employer is obliged to pay the following taxes:
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Contribution to the pension fund - 28 %
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Mandatory health insurance - 6 %
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Workplace accident insurance - up to 1 %
The employee is obliged to pay the following taxes from their gross salary:
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Personal income tax - 13 %
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Payment to social security fund - 1 %
This means that for a hypothetical annual gross salary of 30,000 EUR:
the employer cost is 1,35 x 30,000 EUR = 40,500 EUR;
the employee receives as net pay 0,86 x 30,000 EUR = 25,800 EUR.
payroll taxes
employment relations
Employment relations in Belarus are based on the local Labor Code. Knowing the ins and outs of the law is our job, so that you can focus on your business. There are however a few things that are good to keep in mind.
The local practice in Belarus is to have so-called labor "contracts" instead of labor agreements. The difference in naming is subtle, but the gist of the so-called contract is that it is made in a fixed term. Usually the term is between 1 to 4 years. This is one of the main differences in employment relations in practice when compared to other countries. Employees are expecting to have fixed-term contracts, which is also beneficial for the employer. If an employee turns out to be not what you expected, in a tough situation you can always just wait out their contract and not renew it.
As in most post-soviet countries, Belarusian law and court systems are very protective of the employee. This means that it´s very important to have the right kinds of labor contracts in place in order to avoid unnecessary employment risks. Our service package includes labor contracts that do just that. In case of a conflict situation with an employee, it´s always advisable to find a compromise instead of outright dismissal which may be challenged in court.
In our experience Belarusian employees are some of the most reliable and down-to-earth in Europe, however any smart employer will always consider their risks before employing. If you would like more details about employment relations and the labor code in Belarus, check out our country information page.