In simple terms
A civil-law contract (договор ГПХ, GPKh) is a contract “for a task”, not “for a position”. You promise to do a specific job or provide a service: renovate a flat, write texts, run training. The client pays for the result. The most common types are a work contract (договор подряда) and a service agreement (договор оказания услуг).
Such contracts are governed by the Civil Code, not the Labour Code. So the contractor is not an employee: they have no boss, no schedule and no Labour Code guarantees.
Differences from an employment contract
| Employment contract | Civil-law contract | |
|---|---|---|
| What is paid for | Work in a position | A specific result |
| Working hours | Workplace rules and schedule | You decide when to work |
| Leave | 28 paid days | None |
| Minimum wage and payment deadlines | Mandatory | As agreed |
| Sick pay and maternity pay | Yes | Yes, if contributions were paid for you |
| Pension record | Counts | Counts if contributions were paid |
Since 2023, contractors under civil-law contracts are also insured against illness and maternity if the client paid insurance contributions for them. Usually you are entitled to benefits if contributions were paid in the previous year.
Taxes and contributions: an example
A company pays you 50,000 ₽ under a service agreement. It acts as a tax agent:
- it withholds personal income tax (НДФЛ, NDFL) at 13%: 50,000 × 13% = 6,500 ₽;
- you take home 50,000 − 6,500 = 43,500 ₽;
- on top of that, the company pays insurance contributions at the general rate of 30%: 50,000 × 30% = 15,000 ₽.
Contributions for workplace injury insurance under a civil-law contract are paid only if the contract says so. If the client is an ordinary person (for example, you renovate a neighbour’s flat), you pay the income tax yourself via a 3-NDFL tax return, and there are no contributions.
If you are registered as self-employed (самозанятый), your income from a company is taxed at 6% and no contributions are paid. But the self-employed cannot work this way with a former employer for two years after leaving. You can calculate personal income tax in the tax calculator.
Risks and common mistakes
- Disguising an employment contract. If under a civil-law contract you go to the office every day, report to a boss and get a fixed amount twice a month, this is in fact an employment relationship. A court or the labour inspectorate may recognise it as such, and the company faces a fine.
- No certificate. Sign a certificate of completed work (акт выполненных работ) for each stage — it proves the work was handed over and must be paid for.
- A vague subject. The contract must make it clear what exactly you do, by what date and how much it costs.
- Expecting holiday pay and severance pay. Under a civil-law contract there are none unless the contract expressly provides for them.
In Russia, Kazakhstan and Belarus
Russia
Governed by the Civil Code (Chapters 37 and 39), not the Labour Code. If the client is a company or a sole trader, it withholds 13% personal income tax (НДФЛ) and pays insurance contributions.
Kazakhstan
Work contracts and paid service agreements are governed by the Civil Code of Kazakhstan. If the client is a tax agent, it withholds individual income tax (ИПН, IPN) and pension contributions.
Belarus
Work contracts and paid service agreements are concluded under the Civil Code. Income tax of 13% and, as a rule, contributions to the Social Protection Fund (ФСЗН, FSZN) are withheld from the fee.
Sources: Civil Code of the Russian Federation, Part Two («Гражданский кодекс РФ»), ConsultantPlus, Federal Tax Service of Russia («ФНС России»)