In the first half of 2025, St. Petersburg saw 13,000 self-employed individuals transition into formal labor contracts, as announced by Vice Governor Alexei Korabelnikov. This initiative is part of a broader effort to address concerns about the misuse of self-employment status to avoid taxes and circumvent labor laws.

City authorities, in collaboration with Rostrud (Federal Service for Labour and Employment) and the State Labor Inspectorate, have been actively identifying and rectifying instances where entrepreneurs were improperly substituting traditional labor relations with self-employment arrangements. This action aims to ensure compliance with current legislation and protect the rights of workers.

According to Vice Governor Korabelnikov, the number of self-employed individuals in St. Petersburg has significantly increased 8.5 times between 2020 and 2025. While some of this growth represents individuals formalizing their income, such as those renting out apartments, authorities have noted a trend of businesses using self-employment to minimize tax obligations and avoid employer responsibilities. The focus of the legalization efforts is to address these cases and ensure fair labor practices.