Financial assistance for families with children – tax-free threshold set to rise

Russia’s Federation Council has approved a law expanding tax benefits for families with children. Under new amendments to the Tax Code, the amount of financial assistance that can be paid by an employer tax-free (i.e., without incurring PIT or social contributions) will rise from 50,000 rubles to 1 million rubles per child.

The benefit will be applied in the first year after birth, adoption, or the commencement of guardianship.

The law has been submitted to the President for signing. The changes are expected to take effect from 1 January 2026.