Against a backdrop of geopolitical instability and sanctions, many Russians seek additional income streams. Part-time work has gained formal approval through services such as Avito Rabota and GigAnt, with about two-thirds of respondents planning to pursue part-time opportunities within three months.
Industry leaders note a surge in demand for part-time roles. Artem Kumpel, managing director of Avito Rabota, observes that digital workers and those in physical labor alike are increasingly exploring supplemental employment.
The concept of self-employment emerged in Russia about five years ago and, after pilots in several regions, expanded nationwide by 2020. Data from the Federal Tax Service shows around four million people are officially registered as self-employed since the most recent official release.
According to Mikhail Kirichenko, COO and co-founder of Jump.Finance, self-employed individuals are those who work without employees, actively finding customers to sell goods or services, and paying taxes on earned income.
In short, the self-employed status provides a path to formalize income earned directly by individuals.
Any resident of the Russian Federation may become self-employed, including those already operating as individual entrepreneurs, as long as there are no employees. Registration is straightforward: download and sign up for the My Tax app from the Federal Tax Service, enter income details, and issue customer checks. Registration requires only passport data and a tax identification number. Tax is calculated automatically at month end based on the reported income. Self-employed individuals pay taxes on a timely basis, with rates of 4% for dealings with individuals and 6% for entities, reduced to 3% and 4% when tax relief is applied.
One important limit is that income cannot exceed 2.4 million rubles. If earnings surpass this cap, self-employed status ends automatically, and the app will not allow processing of large sums. To continue operating legally, switching to individual entrepreneur status is advised, according to Kirichenko.
Pros and cons accompany the decision to pursue self-employment. As Natalia Skryabina of the Russian Bar Association notes, self-employed individuals do not pay insurance contributions to the Pension Fund or social funds and thus do not receive related benefits such as sick pay or pensions. They may, however, make voluntary pension contributions to build retirement savings.
Who cannot be self-employed
Legal expert Skryabina reminds readers that not all activities qualify for self-employment status. Certain restrictions apply to those engaged in particular trades or operations under other regimes.
Examples of restricted areas include selling labeled cuttable goods such as tobacco or alcohol, resale of goods not produced by the seller, and the extraction or sale of minerals. People with employees who operate as agents or under commission agreements may also be ineligible.
Labor relationships are defined by performing a specific function, personal involvement in the work, control of working hours, and fixed remuneration. A self-employed person cannot own workers outright, but civil contracts with independent workers are permissible under the law, notes the expert.
Additionally, self-employed individuals cannot rent real estate, sell cars, or deliver goods without a cash register. Otherwise, a self-employed may engage in activities not covered by these prohibitions. Medical or security services often require licenses or specialized premises.
Top 5 Practical Tips for Self-Employed
A key driver of productivity for the self-employed is disciplined time management. The focus should be on understanding where time goes during study periods and daily tasks.
Experts recommend balancing core income-generating activities with personal development and training. The core activity drives current income, while education enhances future earnings by improving products, services, or efficiency. Integrating these two aspects as naturally as possible is essential, says Kirichenko.
Managing daily operations matters. A simple rule is to stick to a clear process for every order, using a status funnel to track progress, payments, and bottlenecks. For a small volume of orders, a basic spreadsheet may suffice, but as orders grow, a customer relationship management system can help manage loyalty programs and large scales of work, he adds.
Freelancing carries risks, notably the blurring of personal and professional boundaries. It is wise to establish a separate bank account, a distinct bookkeeping setup, and a clear work-rest schedule. Do not underestimate the value of quiet time and notification controls to protect focus and well-being.
Automation is a powerful ally. Automating payments, document handling, and invoice issuance saves time, and tasks that cannot be automated can be delegated. Collaboration with other self-employed professionals is common and often productive. Focusing on core business activities, including social media management, responding to inquiries, coordinating with couriers, and maintaining accounts, is crucial for sustained success.