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Contributions on Payments to a Managing Director – Individual Entrepreneur: When to Pay Based on the Minimum Wage, as Clarified by the Ministry of Finance

2026-05-15 16:10 News
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The Russian Ministry of Finance, in Letter No. 03-15-05/9114 dated February 9, 2026, provided important clarifications on the procedure for calculating insurance contributions on payments to a managing director who is an individual entrepreneur. This is relevant for limited liability companies that have transferred the powers of the sole executive body to a manager (a commercial organization or an individual entrepreneur).

Two Scenarios: When the Company Pays Contributions and When the Individual Entrepreneur Pays Them Himself

Scenario 1. The Managing Director – Individual Entrepreneur Pays Contributions for Himself

If the Unified State Register of Legal Entities (USRLE) indicates that the managing director – individual entrepreneur acts on behalf of the company without a power of attorney, and the Unified State Register of Individual Entrepreneurs (USRIE) contains an OKVED code for management services, then the company does not charge contributions on payments to him. The managing director himself pays the insurance contributions in accordance with the established procedure.

Scenario 2. The Company Calculates Contributions, Including Based on the Minimum Wage

If a civil law contract is concluded with an entrepreneur whose activity according to the USRIE is not related to the provision of management services, then the company is obliged to charge insurance contributions on his remuneration.

Moreover, if the payments to such a managing director for a month are below the federal minimum wage, contributions for mandatory pension, medical, and social insurance (for temporary disability and maternity) are calculated based on the federal minimum wage.

Why This Matters for Businesses

Incorrect classification of relations with a managing director – individual entrepreneur can lead to:

  • additional assessment of insurance contributions;
  • penalties and fines;
  • disputes with tax authorities.
The key point is the presence (or absence) of an OKVED code related to management services in the USRIE. If the code is present, the individual entrepreneur pays the contributions himself. If not, the obligation to pay contributions (including based on the minimum wage for low remuneration) falls on the company

What Businesses Should Do

  1. Check which OKVED code is indicated in the USRIE of the managing director – individual entrepreneur.
  2. If the management code is absent, recalculate contributions taking into account the minimum wage rule.
  3. If necessary, amend the contract or register the relevant activity in the USRIE.

How Acsour Can Help

Acsour experts are ready to:

  • conduct an audit of contracts with managing directors – individual entrepreneurs and the correctness of contribution calculations;
  • advise on OKVED registration;
  • assist in making changes to the USRIE if necessary.

Contact us — we will help you navigate the intricacies of calculating contributions on payments to managing directors – individual entrepreneurs and avoid fines.