How to Calculate Payroll Taxes in Belarus

Calculating payroll taxes is an important task for every employer and entrepreneur in Belarus. Errors in calculations can lead to fines, additional costs, and disputes with regulatory authorities. In 2025, the tax burden on the payroll remains significant, and it is important to properly account for all mandatory payments – income tax, contributions to the Social Protection Fund and Belgosstrakh.  

In this article, we will examine what taxes and contributions must be deducted from employees’ salaries, what rates apply this year, and how to calculate the total amounts to be paid correctly.

Why it is Important to Calculate “Payroll Taxes” Correctly

The correct calculation of payroll taxes is one of the important aspects of doing business in Belarus. Mistakes in this process can lead to significant financial losses, legal risks, and problems with regulatory authorities.  So, why is it important to calculate and pay payroll taxes correctly:

1. Avoiding fines and sanctions  

Government agencies such as the Tax Inspectorate and Social Protection Fund strictly monitor the correct calculation and payment of taxes. If an employer underestimates the tax base or makes calculation mistakes, he faces fines, penalties, and possible tax audits and inspections by the Social Protection Fund and other regulatory authorities.  

2. Protecting the interests of employees  

Timely and correct withholding of income taxes and contributions to the Social Protection Fund and Belgosstrakh provide employees with social guarantees such as pensions, hospital payments, and accident insurance. Errors in calculations can lead to problems when applying for benefits or pensions.  

3. Financial stability of the company 

Incorrect tax calculations may cause unexpected additional expenses for the company. If errors are identified after several months or years, the employer will have to pay the missing amount with accrued penalties, which may affect the business’s financial stability.  

4. Reputational risks 

Violations in tax calculations can negatively affect a company’s reputation. Unscrupulous employers caught in tax evasion may lose the trust of partners, customers, and employees.  

5. Compliance with legislation 

Belarus’s tax legislation changes regularly, and employers must constantly monitor current regulations. Using outdated rates or ignoring new requirements can lead to legal problems.  

The correct calculation of payroll taxes is not only an obligation to the state but also a guarantee of employees’ business stability and social security.

What “Salary” Taxes are There in Belarus

In the Republic of Belarus in 2025, wages are subject to a number of taxes and mandatory contributions, the distribution of which between the employee and the employer is as follows:

1. Personal income tax

• Tax rate: 13% of the payroll.
• Payer: An employee. The company he works for is called Tax Agent.
• Deduction procedure: The employer acts as a tax agent and deducts the amount of tax from the employee’s salary when it is calculated.

Since January 1, 2025, an additional income tax rate of 25% has been introduced for individuals whose total annual income exceeds 220,000 Belarusian rubles. This rate is applied to the amount exceeding the specified threshold. The tax authority calculates the increased tax rate based on a tax return, which an individual must submit no later than March 31 of the year following the reporting year.

2. Contributions to the Social Protection Fund:

• Contribution rates:
  At the expense of the employer: 34% of the payroll fund.
  At the expense of the employee: 1% of the payroll.
• Payers:
  Employer: Pays contributions of 34% at his own expense.
  Employee: A 1% contribution is deducted from his salary.
• Payment procedure: The employer withholds the employee’s contribution and, together with his part, transfers the total amount to the Social Protection Fund.

3. Contributions to Belgosstrakh (compulsory insurance against industrial accidents and occupational diseases):

• Contribution rate: Varies from 0.2% to 0.9% of the payroll fund, depending on the degree of professional risk inherent in the organization’s activities.
• Payer: The employer.
• Payment procedure: The employer independently calculates and transfers contributions to Belgosstrakh.

How is the Tax Burden Distributed

The payroll tax burden is distributed as follows:

• At the expense of the employee:
  Income tax (13%) and a contribution to the Social Protection Fund (1%) are deducted from his salary, which amounts to 14% of the payroll.
• At the expense of the employer:
  In addition to the payroll, the employer pays 34% to the Social Protection Fund and from 0.2% to 0.9% to Belgosstrakh, which together amounts to 34.2% to 34.9% of the payroll fund.

Examples of Payroll Tax Calculations

Let’s look at examples of calculating payroll taxes in Belarus in 2025.  

Example 1: Employee’s salary is 2,000 BYN (accrued amount)

1. Income tax (13%)

2 000 × 13% = 260 BYN  

2. Employee’s contribution to the Social Protection Fund (1%)

2 000 × 1% = 20 BYN  

3. The employer’s contribution to the Social Protection Fund (34%)

2 000 × 34% = 680 BYN  

4. Employer’s contribution to Belgosstrakh (0.5% – conditional rate)

2,000 × 0.5% = 10 BYN

Result for the employee:

• Payroll: 2,000 BYN  
• Deductions (income tax + contribution to the Social Protection Fund): 260 + 20 = 280 BYN 
• Amount to be paid (“net” salary, salary on hand): 1,720 BYN 

Employer’s expenses:

• Payroll: 2,000 BYN 
• Contributions to theSocial Protection Fund and Belgosstrakh: 680 + 10 = 690 BYN 
• Total cost per employee: 2,000 + 690 = 2,690 BYN

Example 2: An employee’s salary is 5,000 BYN 

1. Income tax (13%)

5 000 × 13% = 650 BYN 

2. Employee’s contribution to the Social Protection Fund (1%)

5 000 × 1% = 50 BYN  

3. The employer’s contribution to the Social Protection Fund (34%)

5 000 × 34% = 1 700 BYN  

4. Employer’s contribution to Belgosstrakh (0,5%)

5 000 × 0,5% = 25 BYN  

The result for the employee: 

• Payroll: 5,000 BYN 
• Deductions: 650 + 50 = 700 BYN  
• Amount to be paid: 4,300 BYN 

Employer’s expenses:

• Payroll: 5,000 BYN 
• Contributions to the Social Protection Fund and Belgosstrakh: 1 700 + 25 = 1 725 BYN  
• Total cost per employee: 6,725 BYN  

Thus, with an accrued salary of 2,000 BYN, the employee will receive 1,720 BYN, and the employer will pay 2,690 BYN. With a salary of 5,000 BYN, the employee will receive 4,300 BYN, and the employer’s costs will amount to **6,725 BYN.  

What are Payroll Income Tax Deductions

Income tax deductions in Belarus represent the amounts by which an individual’s taxable income is reduced, which reduces the amount of tax paid. In 2025, the following standard tax deductions are provided for in Belarus:

1. The main deduction is 192 Belarusian rubles per month for taxpayers whose income does not exceed 1,164.

2. For a child under 18 years of age and/or each dependent: 56 rubles per month for each child or dependent.

3. For parents with two or more children, children with disabilities, widows, single parents, foster parents, guardians, or carers: 107 rubles per month for each child or dependent.

4. For certain categories of citizens (for example, disabled people of groups I and II, participants in the aftermath of the Chornobyl accident): 272 rubles per month.

Note that there are standard deductions and others. To calculate wages correctly, we recommend using the services of a management company or an experienced accountant.

Example of Calculating Payroll Taking into Account Tax Deductions for a Child under 18 

Suppose an employee has one child under 18 and a monthly income of 1,200 Belarusian rubles.

Step 1. Determine the right to the main deduction

Since the employee’s income exceeds 1,164 rubles per month, the basic deduction of 192 rubles is not provided to him.

Step 2. Determine the deduction for the child

The employee receives a standard child tax deduction of 56 rubles per month.

Step 3. Calculate the taxable income

1,200 rubles (total income) – 56 rubles. (child deduction) = 1,144 rubles.

Step 4. Calculate the income tax

1,144 rubles × 13% = 148.72 rubles.

Step 5. Calculate the employee’s contribution to the Social Protection Fund

1,200 rubles × 1% = 12 rubles.

Step 6. The total amount of deductions

148,72 rubles (income tax) + 12 rubles (contribution to the Federal Tax Service) = 160,72 rubles.

Step 7. Calculate the amount to be paid (“net” salary)

1,200 rubles – 160.72 rubles = 1,039. 28 rubles.

Employer’s costs

1. The employer’s contribution to the Social Protection Fund:

1,200 rubles × 34% = 408 rubles.

2. The employer’s contribution to Belgosstrakh (let’s assume the rate of 0.5%):

1,200 rubles × 0.5% = 6 rubles.

3. The total cost of the employer

1,200 rubles. (payroll) + 408 rubles (contribution to the Social Protection Fund) + 6 rubles (contribution to Belgosstrakh) = 1,614 rubles.

The result:

The employee receives a “net” salary of 1,039.28 rubles.

The employer bears the total cost of 1,614 rubles.

Thus, the provision of a standard tax deduction for a child under the age of 18 makes it possible to reduce an employee’s taxable income, which reduces the amount of income tax and increases the “net” salary. The employer, in turn, is obliged to take these deductions into account correctly when calculating taxes and contributions to ensure compliance with tax laws and the social protection of employees. 

Features of “Salary” Taxes for Employees of Companies-Residents of the Hi-Tech Park of Belarus

Residents of the Hi-Tech Park (HTP) of Belarus enjoy special tax conditions regarding both income tax and contributions to the Social Protection Fund.

Income tax

The income tax rate for employees of HTP resident companies has been reduced to 9%, while the standard rate for most workers in Belarus is 13%. However, in 2025, a generally established income tax rate of 13% will be applied to the salaries of employees of HTP resident companies.

Contributions to the Social protection Fund

The peculiarity of paying contributions to the Social Protection Fund for HTP residents is as follows:

• The base for the assessment of contributions:
  Contributions to the Social Security Fund are calculated not based on the employee’s actual salary but on the average salary in Belarus for the month preceding the month for which contributions are due.
• Contribution rates:
  Contribution rates remain standard: 34% is paid by the employer, and 1% is deducted from the employee’s salary.

Example of Calculating a Contribution to the Social Protection Fund

Let’s assume that the average salary in Belarus for the previous month was 1,500 BYN, and an employee’s actual salary was 3,000 BYN.

Employer’s contribution: 1,500 BYN × 34% = 510 BYN

Employee contribution: 1,500 BYN × 1% = 15 BYN

Thus, despite the fact that an employee’s actual salary is 3,000 BYN, contributions to the Social Security Fund are calculated based on the national average salary (1,500 BYN), which decreases the amount of contributions.

These tax benefits and the specifics of paying contributions make HTP residency attractive to IT companies. They reduce the tax burden and contribute to the development of the high-tech sector in Belarus. 

Conclusion

Calculating payroll taxes in Belarus is an important task for employers. The correct calculation of income taxes and contributions to the Social Protection Fund and Belgosstrakh allows you to avoid mistakes, tax risks and penalties. At the same time, certain categories of companies, such as residents of the Hi-Tech Park, may enjoy special tax conditions.  

In the modern world, more and more companies are expanding their presence in the international market and are faced with the issue of employing employees abroad. In such cases, PEO (Professional Employer Organization) and EOR (Employer of Record) come to the rescue—models allowing you to hire employees in different countries without creating a legal entity there. We help businesses solve international employment issues by ensuring full compliance with various jurisdictions’ tax and labour laws.  

If you need advice or support in calculating payroll taxes in Belarus or organizing international recruitment, please contact us. We are ready to offer you reliable and effective solutions!