Anti-Corruption Legal Awareness: Income tax on sick leave is withheld by both the Social Fund of Russia and the employer
Please note that on January 1, 2023, the Social Fund of Russia began its work, which combined the Pension Fund of Russia and the Social Insurance Fund of the Russian Federation.
Temporary disability benefits, with the exception of maternity benefits, are subject to personal income tax, regardless of the source of its payment. According to the Tax Code of the Russian Federation, personal income tax is withheld and transferred by tax agents. Since the first three days of sick leave are paid by the employer, and all other Social Fund of Russia, the employee has two tax agents, each of which withholds this tax.
In the case of benefits for temporary incapacity for work due to an industrial injury, the tax on the entire amount is withheld by the Social Insurance Fund of the Russian Federation.
The personal income tax rate in 2023 remains the same at 13%. The tax base for accrual is the amount of temporary disability benefits in full. Personal income tax is withheld directly when the money is paid to the employee.
Payments that are not subject to personal income tax include a one-time allowance for pregnancy and childbirth and a monthly allowance for caring for a child up to 1.5 years old.
Link to the official website of the Social Fund of Russia
https://r86.fss.ru/301058/archive/583027.shtml