The system of unified social tax will begin to take effect on 1 January 2010 and the changeover process will continue 2011.

The system currently valid in Russia is based on the regressive scale. The tax payment can be from 26% to 2%. The rate depends on the total annual earnings. Up to the annual salary of 280 000 RUR, the rate for calculation is 26% and above that the rate is regressed until the upper threshold of income of 600 000 RUR at which the tax rate is 0%.

Pursuant to the new system, the taxpayers will have to make payments into three different funds: a pension, a medical care, and a temporary disability and maternity fund. These payments will be calculated from salaries up to 415 000 RUR per annum. Next year the rate will be 26%. Above 415 000 RUR, the rate will be 0%.

From 2011 onwards, the amount of income of 415 000 RUR will be annually indexed by the Russian government and the rate for social security tax is going to be 34%.