Hiring in Belarus: A Complete Guide for US Companies

Belarus is emerging as a strategic destination for international hiring, especially for US-based companies seeking to expand their global footprint. 

The country boasts a robust technical talent pool, competitive labor costs, and a business environment that supports both startups and established enterprises. With a well-educated workforce and a strong tradition in engineering, IT, and manufacturing, Belarus offers access to highly skilled professionals.

Foreign companies benefit from straightforward payroll regulations, a centralized labor code, and a growing ecosystem of remote-ready talent. The government’s ongoing reforms and investment in digital infrastructure further enhance Belarus’s appeal as a hiring hub. 

For organizations aiming to tap into Eastern Europe’s skilled workforce without the complexities of setting up a local entity, Belarus presents a compelling option.

How to Hire Employees in Belarus

Assess Your Hiring Needs

Before hiring in Belarus, clarify your business objectives:

• Full-time vs. Project-Based Support: Decide if you need long-term employees or short-term contractors. Full-time hires offer stability and deeper integration, while project-based workers provide flexibility for specific tasks.

• Local Compliance Requirements: Belarus mandates strict adherence to labor laws, including employment contracts, social security, and tax contributions. Understanding these is crucial to avoid penalties.

• Onboarding Speed vs. Long-Term Control: If rapid hiring and onboarding are priorities, consider solutions that minimize setup time. For greater operational control and a lasting presence, establishing a local entity may be preferable.

Hiring Options in Belarus

You have two primary options for hiring in Belarus:

• Set Up a Legal Entity: Establishing your own company in Belarus gives you direct control over hiring, payroll, and compliance. This option is ideal for businesses planning significant, long-term operations.

• Partner with an Employer of Record (EOR): An EOR acts as the legal employer for your Belarusian staff, handling payroll, contracts, and compliance on your behalf. This is a fast, low-risk way to hire without creating a local entity.

EOR vs. Setting Up a Legal Entity: Side-by-Side Comparison

Feature	Employer of Record (EOR)	Setting Up a Legal Entity
Speed to Hire	Immediate onboarding possible	Several months for setup
Compliance Management	Handled by EOR	Your responsibility
Upfront Costs	Minimal	High (legal, registration, setup)
Ongoing Admin	Low, EOR manages payroll and HR	High, requires in-country admin team
Control Over Operations	Limited	Full
Exit Complexity	Easy, simply end EOR contract	Complex, legal entity dissolution required

Ready to hire in Belarus without the hassle? Discover how Tarmack can streamline your global hiring and compliance.

Understanding Worker Classification

Employees vs. Contractors in Belarus

Proper classification is critical to compliance. Here’s how employees and contractors differ in Belarus:

Criteria	Employee	Contractor
Legal Relationship	Governed by labor code, employment contract	Civil law contract, not subject to labor code
Benefits	Entitled to statutory benefits (leave, social security, etc.)	No statutory benefits, negotiable terms
Tax Withholding	Employer withholds and remits taxes	Contractor responsible for own taxes
Work Control	Employer sets hours, tasks, supervision	Contractor controls how work is performed
Termination	Protected by labor laws, notice required	Flexible, as per contract terms

Legal Implications and Risks of Misclassification

Misclassifying workers can lead to significant legal and financial risks in Belarus:

• Fines and Back Payments: Authorities may impose fines and require payment of missed taxes, social security, and benefits.
• Contract Termination: Early contract termination and mandatory employee departure may be enforced for non-compliance.
• Reputational Damage: Non-compliance can harm your brand and hinder future hiring efforts.
• Increased Scrutiny: Repeat offenses can lead to audits and stricter oversight.

For more on proper classification, see Freelancers, Independent Contractors, and Consultants: Exploring Opportunities and Challenges.

Hiring Costs and Payroll

Hiring Costs Overview

Expect the following standard costs when hiring in Belarus:

• Employer Payroll Contributions: 34% of gross salary, covering pension (28%) and health insurance (6%).
• Mandatory Insurance: Additional 0.1% to 1% for work-related injury and illness insurance.
• Employee Income Tax: Flat 13% withheld from employee salary, plus 1% for social security.
• Other Costs: Legal, onboarding, and potential collective agreement costs.

For detailed cost breakdowns, visit Understanding Total Cost of Employees: Calculation and Management Factors.

Payroll Setup Steps

To set up payroll in Belarus:

1. Register as Employer: Either set up a legal entity or partner with an EOR.
2. Obtain Tax IDs: Required for both employer and employees.
3. Sign Employment Contracts: Must include all mandatory elements.
4. Calculate and Withhold Taxes: Deduct income tax and social security from salaries.
5. Remit Employer Contributions: Pay pension, health, and insurance contributions monthly.
6. Maintain Records: Keep detailed payroll and HR records for compliance.

For more on payroll setup, see How to Pay International Employees.

Income Tax Rates

• Employee Income Tax: 13% flat rate, regardless of income.
• Employee Social Security: 1% of salary.
• Employer Contributions: 34% of gross salary (pension and health), plus up to 1% for insurance.

Payment Methods

• Direct Deposit: Most common, ensures timely monthly payments.
• Bank Transfers: Widely used for both employees and contractors.
• EOR Payroll: EORs manage local payment, tax withholding, and reporting.

Using Global Payroll Services

Global payroll platforms or EORs simplify hiring and paying employees in Belarus by:

• Handling compliance with local tax and labor laws.
• Managing payroll calculations, tax remittance, and benefits.
• Providing a single dashboard for multi-country teams.

Explore How Tarmack Streamlines Global Payroll and Compliance for Enterprise Growth.

How to Properly Hire and Pay Contractors

• Draft a Service Agreement: Clearly outline deliverables, payment terms, and IP ownership.
• Verify Contractor Status: Ensure the role meets contractor criteria to avoid misclassification.
• Use Secure Payment Methods: Bank transfer or international payment platforms.
• Report Payments: Maintain accurate records for tax and compliance purposes.

Learn about the Best Ways to Pay International Independent Contractors: Challenges and Solutions.

Curious about global payroll solutions? See how Tarmack can help you manage payroll and compliance across 150+ countries.

Compliance Risks

Incorrect Payroll Contributions

• Failure to pay the required 34% employer contributions or withhold employee taxes can result in fines, back payments, and legal action.
• Employers must also pay mandatory insurance premiums for workplace injuries.

Permanent Establishment Risk

• Hiring employees directly without a legal entity or EOR can trigger permanent establishment, exposing your business to corporate taxes and regulatory obligations.
• Using an EOR can help mitigate this risk. Learn more at Employer of Record: Complete Guide for Global Employers.

Statutory Benefits

• Employees are entitled to paid annual leave (24 days), sick leave, maternity/paternity leave, and social security benefits.
• Failure to provide these can lead to legal claims and penalties.

Misclassification Risks

• Misclassifying employees as contractors can result in fines, back wages, and retroactive benefits.
• Belarusian authorities are proactive in enforcing classification rules.

Provincial/Regional Law Variances

• Belarus has a centralized legal system; labor laws are consistent nationwide.
• Collective bargaining agreements may provide enhanced benefits in certain sectors.

Overview of Intellectual Property Rights

• IP created by employees in the course of their work generally belongs to the employer.
• Non-compete agreements are unenforceable except in the hi-tech park, and only for up to one year with compensation.
• Confidentiality and IP clauses should be included in all employment and contractor agreements.

For more on managing IP, see Managing Intellectual Property (IP) Through EOR: Key Considerations for Businesses.

Onboarding Process

Before Their First Day

• Prepare Employment Contracts: Include all mandatory elements.
• Collect Documentation: Tax IDs, bank details, proof of qualifications.
• Set Up Payroll: Ensure all systems are ready for monthly payments.
• Arrange Equipment: Laptops, software licenses, and access to company systems.

On Day 1

• Welcome Session: Introduce company culture, policies, and team members.
• Compliance Briefing: Review labor rights, benefits, and workplace rules.
• System Access: Provide logins for apps, email, and internal tools.

During Their First 90 Days

• Probation Period: Standard is three months; monitor performance and provide feedback.
• Training and Integration: Offer job-specific and compliance training.
• Regular Check-Ins: Address questions and support smooth integration.

For onboarding tips, check out Top Eight Best Practices for Onboarding International Employees: How EOR Can Help.

Offer Letter Essentials

• Position and Duties: Clearly described.
• Compensation: Salary, bonuses, and benefits.
• Contract Duration: Fixed-term (1-5 years) or indefinite.
• Leave Entitlements: Vacation, sick, and parental leave.
• Termination Terms: Notice periods and severance.

NDAs and Confidentiality

• Confidentiality Clauses: Should be included in all contracts.
• Non-Compete Agreements: Only enforceable in hi-tech park, with strict limits.

Running Background Checks

• Permitted Checks: Education, employment history, and criminal record (where relevant).
• Consent Required: Always obtain written consent before conducting checks.

Remote Employee Management

Managing remote employees in Belarus requires clear processes and robust security:

• Computer Access: Provide company-approved devices with secure configurations.
• App Access: Use role-based permissions and multi-factor authentication for all business applications.
• IP Protection: Include IP assignment and confidentiality clauses in contracts. Use secure document management and monitoring tools.
• Types of IP Rights: Ensure all work product IP is assigned to the employer, especially for software and creative roles.

Learn more about How to Manage Employees Remotely and Globally and Building Organizational Culture in Remote Teams.

Labor Law Compliance

Key Working Condition Requirements

• Working Hours: 8 hours per day, 40 hours per week.
• Overtime: Limited to 12 hours/day, 10 hours/week, 180 hours/year; paid at 200% of regular rate.
• Leave: 24 days paid annual leave, sick leave, and generous parental leave.
• Minimum Wage: 726 BYN/month as of January 2025.

Working Conditions by Employment Type

• Employees: Full labor law protection, benefits, and notice requirements.
• Contractors: No statutory benefits; governed by civil contracts.

No At-Will Employment

• Belarus does not allow at-will termination. All dismissals require valid reasons and adherence to notice and severance rules.

Trade Unions and Collective Bargaining

• About 95% of workers belong to trade unions.
• Collective agreements often provide enhanced benefits beyond statutory minimums.

For more on compliance, see Employment Compliance and Its Importance.

Termination Guidelines

Acceptable Termination Reasons

Employers in Belarus can only terminate employees for valid reasons, such as:

• Redundancy due to organizational changes.
• Poor performance documented during the probation period.
• Breach of contract or workplace misconduct.
• Mutual agreement between employer and employee.
• End of fixed-term contract.

Arbitrary or unjustified dismissal is not allowed and can result in legal claims.

Notice Periods and Legal Protections

• Notice Period: Minimum of one month’s notice is required for most terminations.
• Severance Pay: At least two weeks’ average salary, or more if stipulated in the contract.
• Job Protection: Employees on parental leave or with special status may have additional protections.
• Dispute Resolution: Employees can challenge terminations through labor courts or trade unions.

Also, check Suggested Script for Terminating an Employee Professionally and Respectfully and Severance Regulations Across Countries.

Benefits of Hiring in Belarus

• Skilled Talent Pool: Strong in IT, engineering, and sciences.
• Cost Efficiency: Competitive salaries and moderate employer taxes.
• Time Zone Compatibility: Overlaps with both European and Asian markets.
• Robust Infrastructure: Modern digital and business infrastructure.
• Remote-Ready Workforce: High adoption of remote work practices.
• Centralized Legal System: Uniform labor laws simplify compliance.
• Strong Trade Union System: Enhances employee stability and satisfaction.

Scale Globally from Belarus

Hiring in Belarus offers US companies access to a highly skilled, cost-effective workforce with the support of clear labor laws and modern infrastructure. Whether you choose to set up a local entity or partner with an Employer of Record, understanding Belarus’s employment regulations is key to a smooth, compliant expansion. 

With the right partner and processes, you can unlock the full potential of Belarus’s talent market and drive your global growth.

Ready to expand into Belarus? Contact Tarmack to simplify your global hiring, payroll, and compliance today.