How to distinguish indexation from salary increases and why it is important

The beginning of the year is the time when many organizations carry out indexation and increase wages for their employees. It would seem that everything is simple here. Indexation is an increase in wages due to rising consumer prices for goods and services.

Promotion wages- this is an increase in its size by decision of the employer and subject to the availability of financial capabilities. However, many people confuse these concepts. What do indexation and wage increases have in common and what are the differences? How often should salaries be indexed and how often should they be increased? What responsibility will the employer bear if he does not carry out indexation?

What do indexation and wage increases have in common and what are the differences?

Both indexation and wage increases are aimed at increasing wages. Indexation aims to ensure an increase in the purchasing power of wages. By its nature, indexation is a state guarantee of wages for workers (Article 130 of the Labor Code of the Russian Federation, determination of the Constitutional Court of the Russian Federation No. 913-O-O).

Raising salaries sets the same goals. At the same time, indexation is not formally an increase in wages, since the real content of wages remains unchanged. Indexation is only a way to protect workers' income from inflation.

In the case of a salary increase, it increases compared to the one that was previously established. In addition, there are other differences between these concepts (table below)

Differences between indexation and wage increases

Evaluation criterion	Wage indexation	Salary increase
Degree of obligation	Mandatory for any employer: both public and commercial organizations	Not mandatory, carried out at the request of the employer
The circle of persons who are provided with an increase in wages	Conducted in relation to all employees of the organization (determination of the Constitutional Court of the Russian Federation No. 913-О-О)	Carried out in relation to the employee(s) whom the employer chooses independently
Factors influencing salary increases	Increase in consumer prices for goods and services	The employer's decision and his financial capabilities
Coefficients used when increasing wages	The consumer price index, which is published on the Rosstat website, is the official inflation rate	Any indicators established by the employer independently

How often should salaries be indexed and how often should they be increased?

Attention!

If local regulations do not contain a procedure for indexing wages, the employer may be held liable, even if it annually increases official salaries (decision of the Zavodsky District Court of Novokuznetsk Kemerovo region dated October 13, 2011 in case No. 12-153/11)

The frequency and periodicity of salary indexation are not established in the Labor Code. At the same time, if an increase in consumer prices is officially recorded, it is necessary to index wages.

The procedure for this procedure for public sector employees is established by labor legislation, and for commercial organizations - by a collective agreement, agreements, and local regulations (Article 134 of the Labor Code of the Russian Federation).

If such provisions are not present in the organization’s documents, then appropriate changes must be made to them (letter of Rostrud dated April 19, 2010 No. 1073-6-1).

In practice, it often happens that in local act The company specified the indexation procedure, but did not select a financial and economic indicator for its implementation. In such a situation, when an employee files a complaint, the court may apply the consumer price growth index calculated by state statistics bodies ( cassation ruling Supreme Court Republic of Bashkortostan dated February 8, 2012 in case No. 33-1256/2012).

In some cases, the indexation procedure and mandatory indicator may be provided for by industry agreements. Thus, for some employers there is an obligation to ensure quarterly indexation of wages in accordance with the increase in consumer prices for goods and services (according to Rosstat) 1

Typically, wage indexation occurs in the following cases:

Increasing the minimum wage (when employee wages are below the minimum wage);
- increase in inflation rate;
- growth in consumer prices in your region;
- height living wage working-age population in Russia or in the region;
- inflation fixed in the law on the federal budget or in the law on the regional budget.

In turn, a salary increase is a right, not an obligation, of the employer and therefore can be carried out at any time, regardless of any factors. Most often, employees receive salary increases in the following cases:

Increasing labor productivity indicators of the organization’s employees;
- increasing company revenue
- if this is provided for in a collective agreement or other local act.

How to index salaries if the organization does not have a collective agreement?

In the absence of a collective agreement, the employer can establish the procedure and frequency of wage indexation in any other local act, for example, in the regulations on wages. Typically, indexation is carried out on the basis of an order from the head of the organization.

It should be noted that the employer, when issuing an order to increase the employee’s wages in connection with indexation, cannot use the transfer order form (No. T-52) 2 if the employee’s labor function and structural unit, in which he works, do not change.

Is it necessary to enter into an additional agreement with the employee when indexing his salary?

Terms of remuneration (including the size of the tariff rate or salary ( official salary) employee, additional payments, allowances and incentive payments) are mandatory for inclusion in the employment contract (paragraph 5, part two, article 57 of the Labor Code of the Russian Federation). Therefore, each time when indexing an employee’s official salary, it is necessary to conclude an additional agreement to the employment contract and indicate the new amount of the official salary (rate) ().

The agreement must refer to the norm of the local act on indexation as the basis for changing the amount of remuneration (Article 134 of the Labor Code of the Russian Federation).

Inflation is a reason for indexation

An employee in a statement of claim may directly refer to inflation as a basis for wage indexation. The presence of inflation is considered a generally known fact and cannot be proven in court. An explanation of this is contained in many decisions (ruling of the St. Petersburg City Court dated March 21, 2011 No. 3866, ruling of the Moscow City Court dated November 16, 2010 in case No. 33-32596, ruling of the Presidium of the St. Petersburg City Court dated February 13 2008 No. 44g-36)

The indexing condition may be contained in employment contract concluded upon hiring. If this condition was not initially included in the document, then the employer can proceed as follows:

Conclude an additional agreement to the employment contract, providing for salary indexation. This option is suitable for organizations that do not plan to frequently change the indexing procedure;

Draw up an additional agreement for each wage indexation, indicating in it a specific indexation coefficient and a link to the clause of the local regulatory act. This method is optimal for companies that often change the indexing order in the local normative act

What liability does an employer face if he forgets to index?

Many employers deliberately do not index wages. Administrative liability is provided for such a violation.

If there is a provision for salary indexation in a collective agreement or industry agreement, but the employer does not implement it, then he will be brought to administrative liability in the form of a fine of 3,000 to 5,000 rubles (Article 5.31 of the Code of Administrative Offenses of the Russian Federation).

If indexation is not provided for in the local act and accordingly is not carried out, then a fine in the amount of 1,000 to 5,000 rubles may be imposed on the head of the organization, and in the amount of 30,000 to 50,000 rubles on the organization (Part 1 of Article 5.27 of the Code of Administrative Offenses of the Russian Federation) .

In addition, an employer who does not carry out indexation may incur material costs if the employee goes to court with a corresponding claim (Articles 236, 391 of the Labor Code of the Russian Federation). The court may oblige the organization to pay the employee the amounts due for indexation for several years (decision of the North Kuril District Court of the Sakhalin Region dated February 19, 2013 in case No. 2-16/2013).

Remember the main thing

Note the experts who took part in the preparation of the material:

Ekaterina SHESTAKOVA,,To. Yu. n., general manager LLC "Actual Management" (Moscow):

Indexation of wages, as opposed to increasing them, is the responsibility of the employer. Even if an organization regularly increases employee wages without indexing them, this leads to a violation of labor laws

Lali CHITANAVA,, lawyer, partner of the Law Office "VASILIEV and Partners" (Moscow):

If the organization does not have a collective agreement, then the conditions, procedure and frequency of indexation can be reflected in any local act. This may be a provision on wages, wage indexation, etc.

Alena SHEVCHENKO, lawyer, expert of the magazine “Personnel Business”:

When carrying out indexation, the employer must draw up an additional agreement with the employee to the employment contract. This must be done every time the company changes the salary amount

Related documents

Document	Will help you
Articles 130, 134 of the Labor Code of the Russian Federation	Define the concept of indexing and find out who should carry it out and in what order
Ruling of the Constitutional Court of the Russian Federation dated June 17, 2010 No. 913-О-О “On refusal to accept for consideration the complaint of the limited liability company Coca-Cola HBC Eurasia for violation of constitutional rights and freedoms by Article 134 Labor Code Russian Federation"(hereinafter referred to as the determination of the Constitutional Court of the Russian Federation No. 913-О-О)	Understand that wage indexation is mandatory for both budgetary and commercial organizations
Articles 5.27, 5.31 Code of Administrative Offenses of the Russian Federation, Art. 236 Labor Code of the Russian Federation	Find out what liability faces an employer who does not index the salaries of his employees
	Find out what to do if the local acts of the organization do not establish the procedure for indexing

1 Clause 27 of the Industry Agreement on organizations of the press, television and radio broadcasting and mass media between Federal agency on Press and Mass Communications and the Russian Trade Union of Cultural Workers for 2012-2014, approved by the Russian Trade Union of Cultural Workers, Rospechat on December 7, 2011.
2 When records are kept according to forms approved by Decree of the State Statistics Committee of Russia dated January 5, 2004 No. 1

You will learn:

• Who and how often should carry out wage indexation.
• What formulas are used to calculate the amount of wage indexation?
• What threatens an employer who refuses to index wages?

Wage indexation- a procedure that must be carried out by the employer. Heads of commercial organizations can, according to the law, independently determine how exactly to adjust the salaries of their employees.

This is due to the fact that in relation to commercial enterprises there is no established procedure in which such a procedure must be carried out. This nuance can cause confusion. For example, not everyone knows exactly what indicators have an impact on the amount of wage indexation, what is the frequency of its implementation, and what kind of documents are needed for this. These and other issues related to salary adjustments will be discussed below. To understand what wage indexation is, you must first of all assume that for hired employees it is measured by two criteria.

First criterion- this is the value that it has in the country’s currency (in rubles).

Second criterion wage indexation - the so-called purchasing power. This is a certain index that reflects the volume of any services or material products that can actually be purchased for a given amount.

Adjustment of nominal values labor payments is a process whose goal is to maximize the equation of actual remuneration with its real purchasing power. Ideally, indexation also reduces fluctuations resulting from changes in exchange rates. This occurs due to the fact that wages are multiplied by a special coefficient called indexing. To calculate such values, the inflation rate is used primarily.

In the Russian Federation, the practice of annual wage indexation has been established. To create an objective picture, annual and projected inflation rates are used. However, the frequency of this practice is not strictly regulated and allows various organizations to adjust wages quarterly or even monthly if management so desires.

2 types of wage indexation

1. Prospective indexation, in which the employer himself, based on his own methods, calculates adjustments to wages.
2. Retrospective indexation, in the process of which income payments increase, based on how much prices actually increased.

In addition, it should be taken into account that there is also an indexation of the minimum wage, which is carried out annually. Most often, this remains within the competence of federal authorities.

The state is extremely interested in ensuring that the indexation of earnings equates the amount of payments to the amount corresponding to the level of inflation. This approach allows us to guarantee that citizens will provide for themselves at the expense of adequate amounts for their work, and will not need social assistance.

When to index wages

Wage indexation can be carried out in the manner prescribed by the employer. He independently establishes in the relevant documentation the frequency and percentage by which the remuneration will increase within the framework of this procedure.

The documentary basis, which prescribes all the rules necessary for the implementation of wage indexation, is a collective agreement, agreement or some other internal document. This requirement is enshrined in Article 134 of the Labor Code of the Russian Federation.

The employer must make adjustments to income due to inflation. It is unlikely that it will be possible to get away from this procedure simply by not including it in the relevant provisions. This, most likely, will only lead to the fact that at the next inspection such a manager will be fined and required to include a provision on wage indexation in the internal regulations of the organization.

An enterprise can independently choose the way in which this procedure for increasing labor income will be documented.

In order to reflect an objective picture of wage indexation, it should be noted that not all of its mechanisms are so clear-cut. In legal practice there are other views on this legal requirement. There are examples of situations in which the courts did not interpret income indexation as an obligation of the employer.

This happened in the Moscow City Court, which in its ruling dated December 12, 2013 No. 11-36261/13 made an interesting conclusion. It stated that factors related to wage indexation, such as the procedure for implementation, size, frequency, must be determined by the employer and enshrined in the appropriate document, for example, in:

• agreement;
• collective agreement;
• local regulatory act.

However, the adoption of any of these documents remains the right of the employer, which is impossible to force him to do, taking into account Article 8, the first part of Article 22, Articles 40 and 45 of the Labor Code of the Russian Federation. In cases where the employer has not adopted any act related to wage indexation, he is not obliged to comply with it, and, therefore, should not carry out this procedure and cannot be held responsible for neglecting it.

Of course, you should not follow such a controversial path, neglecting the legal increase in salaries and rates. Better meet the needs of your employees.

In order to index wages, you need:

1. Conclude a collective agreement that would contain and establish the rules for the implementation of the procedure. As an alternative, it is possible to enter the necessary data into an existing document.
2. Have employees sign this agreement so that they confirm their familiarity with the rules of the upcoming changes. Alternatively, you can not use the document itself, but develop an application to it.
3. When carrying out each wage indexation, issue an order from your superiors to carry out this procedure.
4. Have employees sign the wage indexation order so that they confirm their familiarity with it.
5. Approval of new staffing table due to changes in salaries and rates. Or issue an order that adjustments will be made to the old schedule.
6. Conclude a new agreement with employees. It will be considered an addition to the existing employment contract. The new document will talk about changes in wages caused by indexation.

How to fairly distribute salaries between employees: calculation algorithm

To ensure that the remuneration system motivates employees and does not undermine the company’s income, implement the algorithm proposed by the editors of the General Director magazine.

How does wage indexation differ from salary increases?

Wage indexation and salary increases outwardly look the same and at first glance may seem to be the same operation. But this is far from true.

The purpose of indexation is to preserve the purchasing power of wages. This is a state guarantee provided for in Article 130 of the Labor Code of the Russian Federation.

Thus, indexation is a measure of protection against inflation, and increasing wages is a means of encouraging employees.

Evaluation criterion	Wage indexation	Salary increase
Degree of obligation	Regardless of whether it is a budget or commercial organization, it is mandatory	Can be carried out at the initiative of the employer, but is not mandatory
The circle of people affected by the procedure	Must be carried out in relation to all employees working in the organization (definition of the Constitutional Court of the Russian Federation No. 913-О-О)	It can be carried out in relation to individual employees - those whom the employer chooses himself. He can increase the salary of both all and individual employees, even just one person
Factors that influence salary increases	Increase in consumer prices for services and goods	The will of the employer, provided that he has the necessary finances
Coefficients that will be used to increase the fee		Any factor that the employer deems necessary and significant

How to calculate wage indexation

Wage indexation provides for different approaches to its calculation. Most often it is calculated based on rising consumer prices. The corresponding coefficient value can be found on the Rosstat Internet resource.

However, in labor legislation there is no concept of minimum and maximum indexation. Organizations are free to use their own method in determining the extent of the earnings adjustment to preserve the purchasing power of employee benefits. It is a common practice that, as a means of wage indexation, the salary of all employees can increase by a certain percentage - 5, 10%, etc.

Typically, an adequate methodology for calculating inflation adjustments to income takes into account the following factors:

• increase in consumer prices in your region. You can find this information on the Internet resource http://www.gks.ru/wps/wcm/connect/rosstat/rosstatsite/main/price/. Among employers, this is the most popular indicator for making calculations;
• growth of the living wage established for able-bodied residents of the Russian Federation;
• an increase in the cost of living established for able-bodied residents of your specific region;
• inflation rate from the Federal Budget Law;
• inflation rate from the law on the regional budget.

Using these indicators, you can create your own method designed to perform calculations for indexing wages of enterprise employees.

Example of calculating wage indexation

• March - 102.1%;
• June - 104.5%;
• September - 101.9%;
• December - 104.9%.

As of December 2015, the employee’s monthly salary was 23,500 rubles. Taking into account indexation, the indicator turned out like this for each quarter:

• from March 1 - 23,500 rub./day. x 102.1% = 23,994 rubles;
• from June 1 - 23,500 rub./day. x 104.5% = 24,556 rubles;
• from October 1 - 23,500 rub./day x 101.9% = 23,747 rub.;
• from January 1 - 23,500 rub./day. x 104.9% = 24,652 rubles.

Based on the daily rate, the calculation will be made as follows.

The daily rate for December 2015 was 1,300 rubles. Taking into account indexation, we obtain the amount of payment per day for each quarter:

• from April 1 - 1300 rub./day. x 102.1% = 1,327 rubles;
• from June 1 - 1300 rub./day. x 104.5% = 1,359 rubles;
• from October 1 - 1300 rub./day. x 101.9% = 1,325 rubles;
• from January 1 - 1300 rub./day. x 104.9% = 1,364 rubles.

In addition to the wage indexation itself, the organization’s accounting department calculates vacation pay.

How to take indexation into account when calculating salaries and bonuses

Considering the indexation of income, it should be borne in mind that an increase in salary will also affect the size of the corresponding payments. To illustrate this, it is worth considering an example. Let's take a hypothetical salary of 20 thousand rubles. In addition to this amount, the employee is entitled to the following monthly payments:

• the bonus for completing the plan in full and on time is half the salary due for the time spent;
• bonus for proper quality products. It has a range of 1-30% of full salary. The condition for calculating the bonus is the production of the required volume of products without taking into account time. Affects the size of the payment and the number of defects. If its volume is less than 1%, it will be 30% of the salary, in the range of 1–2% it will decrease to 20%, and at 2–4% it will be 10%. If the defect rate is above 4%, the premium will not be paid;
• The bonus for mentoring is 3,000 rubles, and its assignment depends on the time worked.

The collective agreement on wage indexation, signed by all employees, established that from January 1 of the current year, the salary of each worker was subject to indexation at 6.1%.

In February there were 19 working days, of which one employee worked only 18, fulfilling the plan, and the percentage of defects was 1.1%.

To begin calculating wages for February, the accountant must establish what the salary amount is, taking into account wage indexation.

20,000 rub. x 1.061 = 21,220 rub.

For February, this employee is entitled to the following accruals:

• monthly salary - 20084 rub. (RUB 21,220: 19 working days x 18 days worked);
• the bonus due for fulfilling the plan is 9513.47 rubles. (RUB 20,084 x 50%: 19 working days x 18 days worked);
• the premium due for proper product quality is 4,016.8 rubles. (RUB 20,084 x 20%);
• the bonus due for mentoring is RUB 2,842.11. (3000 rubles: 19 working days x 18 days worked).

Thus, taking into account all these accruals, the total salary for February will be 36,456.38 rubles.

If wage indexation is carried out for the first time

If you intend to index wages in your organization for the first time, then do not forget to document its rules in one of several ways, entering them in:

• local regulations;
• collective agreement;
• provision on wage indexation.

Be sure to familiarize all employees with the new rules of procedure. Remember that employees must sign.

Practice shows that the calculation of annual income adjustments should be made on the basis of the inflation rate, and for a quarterly one it is more advisable to take the cost of living.

For each rate indexation, an appropriate documentary basis is required. Usually they are served by the order of the manager.

• KPI (key performance indicators). How to implement a KPI system in a company

If the employer refuses to index wages

Whether the employer indexes wages or evades this obligation must be monitored by representatives of the State Labor Inspectorate. Of course, during these checks they are based primarily on the local regulatory act on wage indexation in a given organization. If such a procedure is not mentioned there at all, then part 1 of Art. 5.27 of the Code of Administrative Offenses of the Russian Federation provides for administrative liability for this:

• the manager can be fined in the amount of one to five thousand rubles, and if this is not his first such violation, then the fine for neglecting wage indexation will be much larger - from 10 to 20 thousand rubles, or, as an alternative, disqualification for a period of 1–20 is possible. 3 years according to part 4 of article 5.27 of the Code of Administrative Offenses of the Russian Federation;
• the organization can be fined in the amount of 30 to 50 thousand rubles, and if the violation is not the first time, then the amount will increase and can range from 50 to 70 thousand rubles (Part 4 of Article 5.27 of the Code of Administrative Offenses of the Russian Federation).

It is possible that there are similar agreements on wage indexation in an organization, but the procedure for this procedure is violated, which is why employees do not receive the payments due to them. In such cases, the inspector is obliged to issue an order to pay workers the missing funds, as well as add a percentage in accordance with Article 236 of the Labor Code of the Russian Federation.

If the procedure for indexing income in an organization is documented, but regular increases do not occur, then a fine in the amount of 3 to 5 thousand rubles may be imposed on the manager in accordance with the first part of Article 5.31 of the Code of Administrative Offenses of the Russian Federation.

The same sanctions are provided for those employers who set the level of wage indexation lower than that required according to the industry agreement.

If payments due in connection with a wage adjustment are not made for several years, then the court has the right not only to oblige the reimbursement of these funds, but also to demand interest and compensation for moral damages from the employer. This is stated in Articles 236, 237 of the Labor Code of the Russian Federation.

An example of collecting the amount of wage indexation

To illustrate how debt collection occurs for this income category, the following example can be used. In a certain organization there is a regulation on wages, which states that the annual indexation of employee salaries is 5%.

Despite this, it was not held for a whole year. One of the employees of this organization filed a claim, stating that his right to an increase in remuneration due to inflation was violated by the enterprise, and therefore he demands compensation for lost wages.

The following data were used in the calculations:

• employee salary per month – 30,000 rubles;
• wage indexation percentage – 5;
• the delay period for wage indexation is 12 months;
• Based on this, it is clear that he was underpaid by 1,500 rubles every month.

The employee calculated how much the organization owed him for the year. The amount was: 30,000 x 5% x 12 = 18,000 rubles.

Of course, the court is guided in these cases not only by the employee’s statement, but also examines the documentation: schedules, statements, the plaintiff’s personal account. After all the procedures in our example, it was decided that the requirements must be satisfied, as well as the subsequent wages must be increased by an amount corresponding to the indexation carried out.

Only when incomes increase do workers retain positive attitude and remain loyal to the organizations in which they work. Unfortunately, due to inflation, it becomes more difficult not only for business, but also for national economy. However, when tariffs increase, the people who suffer most are those living on wages.

Why is wage indexation carried out?

When wages are indexed, their size increases in accordance with inflation and rising prices for food and other products. Wage indexation in the Russian Federation allows you to maintain economic development countries at the proper level, since citizens retain purchasing power when their income meets their needs.

With indexation, household incomes, which are directly affected by the inflation index, grow. It is the index that becomes the basis for recalculating the wages of working citizens.

There are two types of wage indexation:

• retrospective, which takes into account the level of tariff increases over time (here, as a rule, the consumer capacity of the population decreases; retrospective wage indexation is used to stabilize the economy);
• expected, which is based on the predicted price increase.

It is important that the increase in labor compensation for some specialists at manufacturing enterprises does not benefit the products produced. Its quality often deteriorates as the company begins to use cheaper components and raw materials. Another option is that prices for manufactured products are rising.

If quality is maintained, but product prices increase, high inflation may well occur. And here you should remember the following points.

• Indexation covers only changes associated with inflation, and not increases in market prices. Indexation is carried out only when a certain price has been reached, and not with any increase in prices for food and other goods.
• Indexation is carried out in relation to certain types of income of the population. In particular, pensions, wages, scholarships and unemployment benefits are indexed.
• Indexation does not concern income individual entrepreneurs. This also includes funds from renting out housing, since such activity is entrepreneurial.

The incomes of only certain categories of citizens are indexed, for example, public sector workers receiving the minimum wage.

How to get employees to work without salary indexation

The statement that money is best motivation for employees, no longer works in modern companies. Managers will not put in extra effort if they know that they will receive a small bonus for it - they will prefer not to overwork.

What five non-material methods of motivation are more effective and how to make staff work better and at the same time save the budget, said REditorial Board of the "Commercial Director" magazine.

Wage indexation and its difference from increase

Indexation is an increase in wages caused by an increase in the consumer cost of goods and services on the market. The decision to increase wages is made directly by the employer, if he has enough financial resources for this. But many people confuse these concepts. How does wage indexation in an organization differ from salary increases?

The main goal of both indexation and salary increases is to increase the amount of payments. With the help of indexation, the state allows citizens to maintain purchasing power at the same level or increase it. Consequently, indexation is a state guarantee of wages for the working population (Article 130 of the Labor Code of the Russian Federation, determination of the Constitutional Court of the Russian Federation No. 913-О-О).

Promotion has the same goals. However, in fact, indexation is not a salary increase. The actual content of remuneration does not change. With the help of indexation, the state only protects the population from inflation. If the salary increases, its actual content increases.

Below are other differences between indexation and salary increases.

Evaluation criterion	Wage indexation	Salary increase
Degree of obligation	Mandatory for any employer: both public and commercial organizations	Not mandatory, carried out at the request of the employer
The circle of persons who are provided with an increase in wages	Conducted in relation to all employees of the organization (determination of the Constitutional Court of the Russian Federation No. 913-О-О)	Carried out in relation to the employee(s) whom the employer chooses independently
Factors influencing salary increases	Increase in consumer prices for goods and services	The employer's decision and his financial capabilities
Coefficients used when increasing wages	The consumer price index, which is published on the Rosstat website, is the official inflation rate	Any indicators established by the employer independently

If there is no indexation procedure in local acts, the employer can be held liable, even if he increases wages every year.

How often should employers index wages?

How often and at what time wages need to be indexed is unknown. There is no information in this regard in the Labor Code of the Russian Federation. At the same time, if it is officially known about the increase in the cost of consumer goods and services, wage indexation must certainly be carried out.

The Labor Code of the Russian Federation specifies exactly how wage indexation should be carried out in relation to public sector employees. The commercial organization itself prescribes the procedure in a collective agreement, agreement or local regulatory act (Article 134 of the Labor Code of the Russian Federation). If there are no corresponding provisions, they are developed (letter of Rostrud dated April 19, 2010 No. 1073-6-1).

It often happens that a local act includes information about the indexing order. At the same time, nothing is said about the financial and economic indicator. If an employee files a complaint, the court may use the consumer price growth index proposed by state statistics bodies.

Sometimes industry agreements stipulate on what indicator and how wage indexation should be carried out. Some employers are required to index salaries every quarter, taking into account the increase in consumer costs of goods and services.

As a rule, wages are indexed when:

• The minimum wage increases (the salary of workers becomes lower than the minimum wage);
• the inflation rate increases;
• consumer prices are rising in the region;
• the cost of living of working citizens in a particular region or throughout Russia increases;
• inflation is observed, and this fact is reflected in the law on the federal or regional budget.

It cannot be said that wage indexation is the employer’s responsibility. It's his right. Management can increase salaries at any time, regardless of external circumstances. Salaries are usually increased when:

• staff begins to work more efficiently;
• revenue is growing;
• the increase is provided for by a collective agreement or other local act.

• Changing the employment contract: what any manager should know

Expert opinion

The company can choose the indexation date independently

Aida Ibragimova,

Head of HR Practice of KSK Group, Moscow

The law does not say how wage indexation should be carried out. The commercial organization itself determines how to carry out this procedure. In collective bargaining agreements, agreements, and local regulations, companies stipulate when and how to change salaries.

The employer has the right to index salaries on any day: for example, the 5th or 15th of the month. But there is one condition: the order must be stated in internal documentation. For example, the day of wage indexation is often prescribed in the Regulations on wages. However, as practice shows, most organizations index salaries on the 1st. This makes it easier to calculate wage indexation from a technical point of view.

The procedure for indexing wages

Salaries should be indexed in any structure, both state and municipal. At the same time, the salaries of individuals working civil contracts, are not indexed.

Developing a procedure for indexing salaries in commercial structures is the task of top managers. The principles and procedure for increasing salaries may be mentioned in collective agreements and agreements. Accordingly, elected employees or trade unions can determine the principle by which indexation is carried out. Their responsibilities include conducting negotiations with the administration and consolidating the outcome of the meetings by concluding agreements or contracts.

If there are no elected employees in the company, management, at its discretion, decides how to index wages. Based on the employer’s order, the Regulations that prescribe wage indexation come into force. A sample regulatory document is presented below.

It is good if the procedure for indexing wages is provided for in the organization from the very beginning. But if for some reason it is absent, a scheme can always be developed. Management determines the procedure for indexing salaries by issuing a single independent document or including it in a single Regulation on remuneration.

Main parameters for salary recalculation- This:

• indexing frequency;
• calculation scheme.

The legislation says nothing about the rules governing both parameters, and therefore the head of the enterprise can develop them himself. In accordance with internal procedures, salary indexation is carried out monthly, quarterly, semi-annually, annually, etc. In the business environment, it is accepted that employee salaries are increased annually - at least. If it takes longer to get promoted, it is considered to be to the detriment of the employee.

The methods by which wage indexation is calculated are different. As a rule, employers index salaries and tariff rates. Only payments calculated as a percentage of the main part of the salary do not change. If additional payments at the enterprise are fixed, they can also be increased. Managers usually do not change this amount. However, experience shows that sometimes they still index parts of the salary within the established limits.

The indexation coefficient is tied to a macroeconomic parameter. There is the CPI, or consumer price index, which is calculated by the statistical office. Each region has its own indicators, but everything is set by Rosstat. There is a common meaning for the country as a whole.

The employer has the right to make calculations based on any indicator. In addition, companies can apply actual or estimated inflation rates and changes in the cost of living. Expected indicators are not very convenient to use.

The index of consumer cost of goods and services, as well as the inflation rate, can be found on the website of the statistical service www.gks.ru. The Federal Budget Law includes data on the projected increase in inflation. Regional authorities always report the cost of living in Russian regions. Information about the general indicator in the country is published by the Government of the Russian Federation.

An example of wage indexation. At Spectr LLC, employees of the accounting department receive:

• 35 thousand rubles. - chief accountant;
• 20 thousand rubles. - accounting group accountant;
• 22 thousand rubles. - accountant of the commodity accounting and cost group.

Salaries are indexed every year in accordance with the CPI indicator. Recalculations are carried out at the beginning of the year, based on last year’s final indicators.

The price increase for January-December 2016 compared to the same period last year amounted to 107.1%. Conversion factor – 1.07. Thus, in 2017 the data will be as follows:

• salary of the chief accountant is 35 thousand rubles. x 1.07 = 37,450 rubles;
• salary of an accountant in a settlement group is 20 thousand rubles. x 1.07 = 21,400 rubles;
• the salary of an accountant of the commodity accounting and cost group is 22 thousand rubles. x 1.07 = 23,540 rub.

Starting from January 2017, salaries must correspond to the established values.

• How to hire an employee and not make the wrong choice

An example of applying the wage indexation coefficient

In Russia, there are certain public services, one of whose responsibilities is the formation of salary recalculation indices. Among these government agencies:

• state budget: provides recalculation indices for budgetary organizations;
• social insurance fund and federal budget: passes indices for recalculation of any benefits;
• Pension Fund of the Russian Federation: provides coefficients for recalculating pension accruals;
• private business: decides which coefficients will be used when recalculating wages.

The average wage recalculation coefficient is calculated in two stages:

1. wages after all recalculations are divided by the amount of the starting salary;
2. the summed up bonuses after indexation are divided by the amount before it (if the employee was paid bonuses, additional payments, allowances to the main part of the salary).

Payment methods are chosen on an individual basis. They take into account not only the indexation of full wages, but also material incentives. For calculation use:

• fixed size(for example, 5 thousand rubles);
• range– let’s say two salaries or 10% of the previously paid salary.

When choosing a coefficient that will serve as the basis for periodic changes in employees’ salaries, calculate in advance what wages they will ultimately receive.

Example

Let’s find out how the salary of an employee of Shar LLC changed in 2016 compared to 2015. Let’s note that the employee performed his job duties well. The calculation results are shown in the table below.

In 2015, Petrov received a salary equal to 30 thousand rubles. The amount of the monthly bonus for meeting planned targets is 15%, for strict adherence to work schedules – 5%. In 2015, Petrov’s salary, taking into account all additional payments, amounted to 36 thousand rubles.

Let's determine the salary amount for different wage indexation coefficients (options 1–3). Wages are indexed every year on January 1 according to several schemes.

• 1st scheme: the minimum wage in force in the new year, compared to the past.

In 2015, the minimum wage in Russia was 5,965 thousand rubles. In 2016 – 6204 rubles.

Accordingly, the size of the wage increase coefficient will depend on the increase in the minimum wage:

6204 / 5965 = 1,04.

Petrov’s salary in 2016 according to the 1st scheme will increase by 4%:

36 thousand rubles. x 1.04 = 37,440 rub.

• 2nd scheme: for the officially predicted inflation level next year.

In 2016, according to government forecasts, inflation will be 6.4%. Consequently, wages will increase in accordance with the same indicator:

36 thousand rubles. x 1.064 = 38,304 rub.

• 3rd scheme: according to the company’s salary increase coefficient – ​​1.05.

In 2016, the salary amount in accordance with this scheme will be:

36 thousand rubles. x 1.05 = 37,800 rub.

This example shows: it is the chosen indexation indicator that determines how wages will increase.

Payments for employees of organizations are calculated as a percentage of wages, tariff rates, piece rates, or remain unchanged.

Example

Let’s assume that every month Petrov receives not additional payments, which are calculated as a percentage of the unchanged part of the salary, but a fixed bonus in the amount of 6,000 rubles. Please note that the company indexes only wages; the amount of other payments does not change.

It is clear from the example that such calculations of bonuses and fixed parts are unprofitable for employees.

• What you can give a bonus for: the best motivation schemes in 2017

How to draw up a regulation on wage indexation

How wage indexation should be carried out is prescribed by a commercial organization in the following documents:

• collective agreement;
• local act;
• agreement.

As a rule, the indexation procedure is included in the Regulations on remuneration.

The procedure for recalculating wages should be included in some local act, for example, in the Regulations on Bonuses (for a commercial enterprise). This document becomes the basis for the formation of an indexing order. A sample based on which an order for wage indexation is drawn up is given below. Its arbitrary form is acceptable.

The order on wage indexation includes a link to legislative documentation. A person is appointed responsible for indexing the employee’s salary.

The order must contain:

• signatures of subordinates and responsible employee;
• manager's signature;
• stamp or seal of the organization;
• registration number recorded in the order register.

The regulation on wage indexation, a sample of which is available on the Internet, consists of several parts. The first provides detailed information about what wage indexing is and for what purpose it is carried out. The order often mentions that indexation of employee wages is a state guarantee.

Further in the document, they provide detailed calculations of the indexed salary, indicate what coefficient the specialists used and by what rules the recalculation was carried out. The order also describes what types of payments are subject to indexation.

The organization appoints specialists responsible for the procedure and creates control rules. If there are additional conditions (for example, the possibility of not indexing salaries by agreement with the trade union), they are also included in the order for wage indexation. The internal documentation is approved by the manager. Next, all employees become familiar with it, signing after reading it.

For each employee, wages can be calculated differently: it all depends on his category and type of organization. For example, when indexing salaries to manufacturing enterprises based on the hourly or daily tariff rate, and not the amount of wages, as for office workers. When calculating salaries, separate provisions are often created for categories of employees.

The salary amount is an important point in the employment contract. If it changes, it is reflected in the document. In order not to make changes to the contract regularly, supplement it with a link to internal act companies. All new employees should be introduced to it, and only then should they be allowed to take on work duties. If detailed information there is no indexation; when the salary increases, bilateral additional agreements are signed to the agreement on changes in wages.

If there are few employees in the company, it takes a minimum of time to formalize agreements. If their number is in the thousands, it is quite difficult to periodically adjust the terms of the contract.

Remember, the employment contract changes at the initiative of the employer. Therefore, it is necessary to strictly comply with the terms of Art. 74 Labor Code of the Russian Federation. The employer is obliged to notify the employee two months before the innovations. After reading the document, the employee signs it. If he does not agree with the new conditions, the manager transfers him or fires him. Despite the fact that employees usually perceive changes associated with salary increases positively, difficult situations. Staff often dispute the amount of indexation, and therefore it is imperative that all procedures are followed in accordance with the law.

Expert opinion

It is not necessary to carry out indexation annually

Anastasia Novikova,

HR Director of the company "GIPRONIIAVIAPROM"

If you indicate in the Regulations that wage indexation is carried out at the initiative of the manager, this will be incorrect. Indexation depends on the inflation rate in the country. If indexation is carried out, it means there is inflation. Of course, management can also make decisions about indexing, but this looks strange.

Remember, an indexation clause should be introduced only when the company is confident in its ability to increase salaries every year.

Let's give an example of wage indexation. At the end of the year, the labor commission decides to index salaries. She takes as a basis financial indicators enterprises and inflation index for Russia. On their basis, salary changes are calculated and the indexation amount is set in percentage terms, which should not be lower or higher than the official inflation index.

At the same time, some organizations link their decision to index salaries with the level of inflation - is it critical in at the moment. In the Regulations, the managers state: “If inflation in the country becomes significant and exceeds 10%, the enterprise will recalculate wages. The amount of salary increases is determined by the management team, based on their financial capabilities.”

• How not to make comments to subordinates: 10 forbidden phrases

Responsibility of the employer for failure to index employees' wages

Many employers deliberately do not index staff salaries, but there are penalties for such actions administrative punishment. If the need to increase salaries is stated in a collective agreement or local act, but management ignores wage indexation, administrative liability applies - a fine of 3-5 thousand rubles. (Article 5.31 of the Code of Administrative Offenses of the Russian Federation).

If the organization’s internal document does not mention indexation and the employer does not carry it out, the fine is 1–5 thousand rubles. The organization itself pays 30–50 thousand rubles. (Part 1 of Article 5.27 of the Code of Administrative Offenses of the Russian Federation).

If this violation is detected again, officials fined 10–20 thousand rubles. (they can also be disqualified for 1–3 years), and legal ones – by 50–70 thousand rubles. In addition, persons who violate the terms of indexation are often prohibited from working in leadership positions and leading labor activity generally. Employers not only have to be held accountable under the law for violations committed, but also have to index wages and cover all debts. It happened that employers paid indexation debts over the past years. Such orders were issued to them by labor inspectors.

Example

The State Labor Inspectorate routinely monitored the company for compliance with the norms of the Labor Code of the Russian Federation. The audit showed that the indexation procedure in connection with price increases in the Salary Regulations was not followed. The management was called to administrative liability under Part 1 of Art. 5.27 Code of Administrative Offenses of the Russian Federation. The director of the organization demanded that the act of administrative violation and close the case. However, he was refused in court because there were no grounds for dismissing the case.

Example

Branch of a non-profit enterprise in one of Russian subjects brought to administrative responsibility due to the lack of indexing procedures. The head of the department went to court, asking to cancel the decision to impose penalties. According to management, the violation was minor. In addition, the company did not conduct commercial activities.

The manager also indicated that during the study of the case materials, all controversial issues were resolved, and the employee withdrew the complaint that became the basis for the inspection. As the plaintiff noted, he indexed staff salaries, paying bonuses every month. The court took into account the plaintiff's position, but did not dismiss the case. According to the court, the payment of bonuses could not be regarded as indexing.

Judicial practice related to wage indexation

The Constitutional Court of the Russian Federation has repeatedly emphasized that the wages of all workers must increase. The court believes that the rules prescribed in the Labor Code of the Russian Federation are quite clear and there can be no discrepancies in them. In particular, according to Art. 134 of the Labor Code of the Russian Federation, absolutely all employers are required to index staff salaries. This requirement applies to all managers, even those who do not work in budgetary organizations.

The same position is expressed by Rostrud, which previously clarified that if the local regulatory act of an organization does not contain rules on indexing, managers are obliged to create an appropriate document or adjust an existing one (Rostrud letter dated April 19, 2010 No. 1073-6-1). Later, in September 2015, Rostrud confirmed its point of view. Moreover, the department noted that employers should under no circumstances ignore this obligation; this is regarded as a violation of the norms of the Labor Code of the Russian Federation.

To protect the rights of the working population, territorial state labor inspectorates (GIT) operate. Citizens whose labor rights, in particular related to indexation, have been infringed, can always turn to these bodies. State Labor Inspectors have the right to impose administrative liability on employers for violating the norms of the Labor Code of the Russian Federation under Part 1 of Art. 5.27 Code of Administrative Offenses of the Russian Federation. In addition, control authorities often oblige heads of various organizations to develop a procedure for indexing wages. In these cases, fines are usually not imposed.

Appealing to the state labor inspectorate does not suspend the period allocated for going to court. It is 3 months from the day the employee learned of the violation (Part 1 of Article 392 of the Labor Code of the Russian Federation). In order to stay within the legal framework, if the manager’s guilt regarding wage indexation is not obvious (for example, when the employee does not agree with the amount of additional payments), it is better to file a claim with the court.

At the same time, according to the courts, the period of 3 months is calculated not from the moment of termination of the employment contract, but from the moment when the employee learned or should have learned about the violation of labor rights to index the salary for a certain time. Such a moment may be the day of payment of wages or advance payment, the amount of which was disputed by the plaintiff.

Judicial authorities often oblige employers to pay back unpaid wages to employees. Such debts must have been repaid within the due date limitation period, that is, 3 months before filing a claim.

The situation is completely different if the local regulations, labor or collective agreements of the organization do not say about the manager’s obligation to carry out indexation, but at the same time the employees insist on giving them the “unpaid” part of the salary due to inflation. In such cases, judicial authorities, as a rule, refuse to recalculate salaries, even if the statute of limitations has not yet expired.

5 reasons for refusing to satisfy a claim for wage indexation

1. The company does not have approved rules for indexing wages

As stated in Art. 134 of the Labor Code of the Russian Federation, in private organizations indexing rules are prescribed in local regulations, collective agreements, and agreements. Judicial authorities often decide that since there are no corresponding internal requirements, indexing is not necessary. The courts note: only the employer determines whether to carry out indexation. This means that there is no legal basis for demanding “unpaid” funds from him.

1. Indexing is not the only way to increase wages

Courts often note that employers have the right to increase salaries in any way. They can equate issuing bonuses and salary increases to indexing. Courts, when considering issues of violation or preservation of an employee’s rights to compensation for losses due to inflation, take into account the actual increase in wages. However, this may not be related to indexing. If, during the consideration of the case, it turns out that the employee’s salary was increased at least once, it no longer needs to be indexed.

1. Wage indexation– state guarantee

In this regard, the position of the courts is as follows: the employer is not obliged to index the employee’s salary if the corresponding requirement is not in the local regulations of the organization and if the state does not allocate funds for this purpose. In addition, courts in such claims do not impose obligations on managers to develop indexing rules.

1. The employer has financial difficulties

The courts do not satisfy claims for wage increases even in cases where local regulatory documents stipulate the condition of indexing – the achievement of specific financial goals by the organization. However, it was not possible to achieve them.

If the document contains a condition on indexing, this does not mean that wages in the organization will certainly be increased. In such situations, the courts do not satisfy claims to increase salaries against managers who find themselves in difficult situations. financial situation(for example, due to financial problems at the enterprise).

1. The degree of indexation of wages is not prescribed by law

Judges give this reason for refusal in cases where the salary has been indexed, but, in the employee’s opinion, in an insufficient amount. Consequently, when increasing the employer used a coefficient that did not correspond to the consumer cost index of goods and services.

The courts believe that as the consumer cost of goods and services increases, wages should be indexed. However, nothing is said about the size of the increase, and therefore employers are free to set any coefficients for indexing, including those that do not fully cover losses due to inflation.

However, judges sometimes side with employees and satisfy statements of claim about unpaid parts of wages, even if the indexing rules are not specified in internal documents. Courts often note that if the employer is obliged to determine the indexing procedure, then the absence of such a procedure does not mean depriving the employee of the right to an indexed salary. Based on this, judges make decisions to recover underpaid amounts from management after wage indexation has been carried out. Judicial practice shows that authorities often take the position of employees in matters of indexation of not only the fixed part of the salary, but also the entire salary - with allowances and incentive payments.

Since the clause regarding indexation in the Labor Code of the Russian Federation is formulated ambiguously, the labor rights of the working population are sometimes violated. However, the law to this day does not tighten either the requirements or penalties for employers for violating the rights of personnel prescribed in Art. 134 Labor Code of the Russian Federation. And, most likely, employees should not count on 100% financial security in the near future, even with losses due to inflation. In this regard, when applying for a job at an enterprise, an applicant should understand whether they comply with the requirements of the Labor Code of the Russian Federation, how wages are paid, whether there are delays in payments, to what extent salaries are indexed, etc. Employers should remember that ignoring the requirements according to indexation, they face administrative liability along with forced payment of compensation (if their subordinates win in court).

Situations also arise when the courts decide to recover from employers the difference between wages, indexed taking into account the increase in consumer value, and the salary issued in fact, for indexation of which a coefficient of a smaller amount was used. The judges note that wages indexed by a factor below the consumer value index do not increase the actual salary, and this contradicts state guarantees.

Wage indexation is an increase in employee salaries based on the new level of consumer prices. In 2019, it is mandatory for commercial organizations. The article contains everything about recounting: procedure, formulas, examples, samples of orders and local documents, reference books and useful links.

Important documents that will help you correctly index your wages and complete all the necessary documents:

The BukhSoft program will automatically index workers' wages taking into account all changes in legislation. She will also prepare all the documents required for this operation under labor law. Try it for free.

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Wage indexation: what is it and why is it necessary?

Wage indexing is one of the ways to increase wages. And it is the responsibility of the leader. Moreover, the procedure must be carried out as budgetary organizations, and commercial. Only the procedure for conducting the recount differs in some nuances. In addition, in addition to the interests of employees, they can also take into account their own benefits.

Indexing is considered to be a real increase in the level of wages for all employees of the company, and not for a certain part of them.

Regulatory documents on wage indexation in 2019

The main documents establishing the procedure for indexing wages include:

1. Labor Code of the Russian Federation. Important are Article 22, which establishes the obligations of the employer, Art. 46, regulating the provisions of the collective agreement, Art. 129, defining the composition of indexing, Art. 130, responsible for compliance social guarantees workers, art. 134, regulating the manager’s obligation to ensure salary indexation.
2. Federal laws and regulations. Regarding the procedure for implementing mandatory wages from 2019 in budgetary structures.
3. Code of Administrative Offenses of the Russian Federation. ST 5.27 defines liability for failure to index.

In addition, documents establishing the procedure for recalculating wages may include:

1. Constitution of the Russian Federation
2. Explanations from government authorities
3. Resolutions of courts.

How indexing is carried out in Russia

For recent years in connection with economic crisis There was no annual recalculation of salaries of public sector employees. This moratorium only ended in 2019. Since the beginning of 2019, all government and budget employees began to receive indexed salaries.

The indexation rate was 4%. But he didn't limit value. In connection with the increase in the minimum wage from May 1, 2019, if the indexed salary of a public sector employee has not reached its value, then it is again increased to the minimum wage value.

Salaries of civil servants in 2019 were indexed for the first time in six years.

The procedure for wage indexation in 2019

Many commercial employers believe that conducting an annual salary recalculation is a right, not an obligation. This opinion is based on Art. 134 Labor Code of the Russian Federation. It states that the indexing procedure should be established only by local regulations.

At the same time, Rostrud gave its explanations in letters No. 1073-6-1 dated 04/19/10 and No. 14-3/-1135 dated 12/26/17. The Constitutional Court also outlined its position in ruling No. 2618-O dated November 19, 2015. They indicate that every employee has the right to an increase in the real amount of their salary.

But unlike the public sector, the head of a commercial company has a certain freedom in this matter. So, he can independently install:

• timing of indexing;
• methodology for its implementation;
• calculation method.

If indexing is not carried out and payments remain at the same level, employees have the right to appeal to the labor inspectorate.

The manager must independently decide which indicator he will use as the basis for calculating the wage indexation coefficient for 2019: the cost of living, the inflation rate, the consumer price index or something else. The chosen methodology must be properly reflected in employment contracts and in the relevant order.

Example 3

The calculation in this case will look like this: O * (I: 100), where

О – indexed salary;

I is the consumer price index.

So, if an employee’s salary is 25,000 rubles, then after recalculation it will be: 25,000 * (102.5: 100) = 25,625 rubles.

The order must contain:

• basis for indexing;
• indicator used for calculation;
• the date from which wages should be calculated in a new way.

The current sample order is shown in the window below, this document can be downloaded:

How to calculate the amount of wage indexation in 2019

Before making a recalculation, the employer needs to decide on a number of issues.

1. Set the period for the procedure

Any of the periods can be taken as a basis:

• a year is the maximum period during which indexing must be carried out without fail (it is advisable to initiate the procedure at the end of the current year - the beginning of the next year, so that from January of the new year people will already receive increased salaries);
• six months – increasing salaries every six months will increase employee motivation to work and will allow diversification of the company’s cost dynamics;
• quarter is also an equally common practice of indexing salaries in Russian companies;
• a month is the minimum period for carrying out the procedure (associated with an increase in personnel and other costs, therefore less common).

1. Select an indexing mechanism

The following can be chosen as a mechanism for determining the amount of wage indexation in 2019:

• orientation to the minimum wage - in this case, the procedure is carried out taking into account the minimum wage each time this indicator changes or at any period, but at least once a year; the amount of conversion should not be lower than the consumer price index;
• inflation level - in this case it is necessary to ensure that indexing is not lower than the CPI; in 2019, this figure is 4%, it is to this value that the salaries of public sector employees will be indexed;
• consumer price growth index is a key indicator when recalculating wages; in this case, wages should be indexed at least by the value of the CPI of the previous year; The CPI is stated as federal level, and at the regional level - the head of the company decides by what amount to increase the salary;
• other indicators - the manager can choose other indicators to increase the level of remuneration, provided that they will not be less than the legally established values.

You can index not only your salary, but also incentive payments. This also depends on the decision of the manager. The most important thing is that all these nuances are reflected in local regulations - for example, in a collective agreement. A sample of it is presented in the window below, this document can be downloaded:

But in commercial organizations, wage indexation in 2019 is most often formalized by the Regulations on Remuneration. Its current sample is shown in the window below and is available for download:

When choosing an indexing mechanism, it is necessary to properly justify it, because The tax service may question the costs incurred and consider them to be unlawfully included in the tax base. It is safer to take official indicators as a basis.

The following formula is used for calculation:

Indexed salary = current salary * approved coefficient.

Algorithm for wage indexation in commercial organizations

The salary indexing process requires compliance a certain order actions. Let us present the optimal algorithm.

Step 1. Checking the wage regulations. All data on wage indexation in 2019 must be recorded in internal documents. The wage regulations are the best solution. By appropriate order, an additional clause can be added to the regulation reflecting the indexing conditions.

The current wording for the recalculation of wages in the Regulations on Remuneration is given below, this document can be downloaded:

The current wording for recalculating wages to the minimum wage is given below, this document can be downloaded:

You can also develop your own Regulations on the procedure.

Step 2. Calculation of new earnings

The responsible employee must, taking into account the coefficient specified in the regulations, index the salaries of all employees of the company. Based on this calculation, it is necessary to develop an updated staffing schedule. Or, by order of the manager, to make adjustments to the existing staff.

Step 3. Development of an indexing order. It must reflect all the conditions and nuances of the recount, indicating further actions.

Step 4. Drawing up additional agreements. An additional agreement to the employment contract must be drawn up with each staff member. It must contain information about the indexation carried out and the installation of a new salary. The document is drawn up in two copies, on each of which the employee must put his signature.

Judicial practice on salary recalculation

For failure to comply with salary indexation requirements, a company, its manager or individual entrepreneur may be held accountable (for the amount of fines, see the table below).

If the employer has actually carried out indexing, but does not have internal documentation regulating this procedure, then he can receive an order from labor inspection on the implementation of these acts.

Also, in the event that indexing has not been carried out, a company employee has every reason to contact judicial body. But judicial practice regarding salary recalculation is ambiguous. A decision may be made either to recover the income lost by the employee or to exempt the employer from paying.

In addition, the employer may receive penalties for failure to pay taxes. Non-indexed salaries are smaller. Accordingly, contributions to the budget were made in a smaller amount.

Indexation usually refers to a planned increase in wages for all employees of an organization, caused by annual inflation and increased prices for essential goods. Timely indexation of salaries is the responsibility of the manager; for evading it, he can easily end up in court. The need to increase the level of real wages is outlined in the Russian Federation.

How to properly carry out indexing in an enterprise? What state laws and is this process regulated by local acts? And are private employers, along with budgetary organizations, obliged to worry about regular wage increases?

Indexing and its reasons

In accordance with Article of the Labor Code No. 134, any government bodies and other enterprises are required to regularly index the salaries of their employees in accordance with the level of growth in consumer prices. However, this article does not talk about how to calculate indexation, nor about the timing of its implementation and specific procedures. More clear instructions are contained in the letter of Rostrud No. 1073-6-1 dated 04/19/10. It states that the employer is obliged to establish indexation rules in the company’s local acts or in its individual provisions.

According to labor law standards wages do not always have to be equated to the inflation rate, that is, to the average increase in prices for essential goods. The organization is not even obliged to rely on Rosstat’s regular publications on price increases. But employers are almost always guided by this indicator because of its convenience.

In addition, other factors influence the calculation:

• price increases in a specific subject of the Russian Federation;
• the level of inflation indicated by both federal and local laws;
• the level of growth in the living wage of the working population (both in Russia and in the region).

In addition to Article 134 of the Labor Code of the Russian Federation, the procedure for indexation is regulated by the norms of the collective labor agreement, as well as various local acts and agreements. Unfortunately, a specific clause on the indexation of employee salaries can only be found in the regulations and local acts of large corporations. But even in this case, the convenient formulation “subject to financial capabilities” is often used.

Indexation of salaries of public sector workers is carried out from the state treasury, indexation of pension payments - from , indexation social benefits- from the federal budget and the Social Insurance Fund.

How to index salaries at an enterprise?

The indexation procedure in accordance with the norms of labor legislation is indicated in the relevant regulatory document(local act). If it has just been developed, then all employees must familiarize themselves with it and sign for this fact. Similarly, when hiring a new employee, he is introduced to this regulatory act. Information about indexation is also specified in the employment contract, and if the salary level increases due to indexation, additional agreements are drawn up to it.

The indexing procedure is as follows:

1. adoption of a local act or making amendments to an existing document (normative collective agreement, regulations);
2. familiarization of enterprise employees with the text of the document for signature;
3. issuance by the manager of an order to carry out indexation (and familiarization of staff with it);
4. approval of the staffing table and salary regulations with appropriate changes;
5. signing with employees an additional agreement to the employment contract (with a changed level of remuneration).

There are 2 ways to index wages - retrospective And expected. In the first case, indexation is carried out retroactively, taking into account the increased price level. The expected indexation is done in advance, even before Rosstat publishes the current inflation level.

Wage indexation formula

To index salaries, a simple formula is used:

I = D * I pts/100,

• AND– indexation level,
• D– the employee’s income level that will be indexed,
• IPC– consumer price index (published by Rosstat, can be viewed on the Internet).

There are several ways to calculate the inflation rate when carrying out indexation - actual, predictive and premium. Actual inflation - this is the real inflation for last year. So, with a salary of 50,000 rubles and inflation at 4.5%, the salary will increase by 2,250 rubles (50,000 * 4.5: 100) and amount to 52,250 rubles.

Forecast inflation uses the predicted level of price increases. If the actual inflation in the end is higher than predicted, then starting next year the salary will be recalculated, that is, the employee will be immediately given the missing amount. Otherwise, the difference is withdrawn one-time from the employee’s salary.

At premium indexation the level of increase in consumer prices is completely ignored. For an employee who has not had any serious comments, reprimands or other disciplinary sanctions in a year, the salary is increased by an arbitrary percentage or a coefficient specified in local regulations.

An example of calculating the indexation level

As an example, let’s take a quarter as a calculation period (quarterly indexation method), which is based on an already known inflation rate. Let’s assume that quarterly inflation in 2017, compared to December 2016, was:

• March – 0.34%;
• June – 0.59%;
• September – 1.02%;
• December – 0.97%.

Indexation can be calculated both by salary level and by the level of average daily salary. For example, an employee’s salary as of December 2016 was 52,300 rubles. Quarterly wage indexation based on 2017 inflation will look like this:

• from April 1, 2017 – 52,300 rubles * 1.0034 = 52,448 rubles;
• from July 1, 2017 – 52,448 rubles * 1.0059 = 52,757 rubles;
• from October 1, 2017 – 52,757 rubles * 1.0102 = 53,295 rubles;
• from January 1, 2019 – 53295 rubles * 1.0097 = 53812 rubles.

As a result, wages in 2017 increased from 52,300 to 53,812 rubles, that is, by 1,512 rubles. The calculation of the increase in wages will be similar, but taking into account the daily rate, and not the monthly salary. Along with wages, the employer is obliged to timely index vacation pay.

To calculate vacation pay and compensation for unused vacation days, the amount of accrued salary is divided by 12. The final result is divided by the average number calendar days per month, adopted at the federal level – 29.3.

Are commercial organizations required to carry out indexing?

He talks about the obligation to timely index the salaries of managers of both budgetary organizations and private businesses. But the provisions of this article cannot be interpreted entirely unambiguously, as many lawyers note. It says that the real level of wages should be in accordance with rising consumer prices. And there are no exceptions to this rule for private companies.

The difference is that budgetary organizations, when indexing salaries, are guided by the norms of other federal and local laws, and private businesses are guided by local acts. The first sources are public and accessible to the public, so they must be followed strictly. Local acts, on the contrary, are valid only within the enterprise, so it is not necessary to comply with them. Nobody is watching this. The heads of these companies themselves and some lawyers think so.

Are private firms required to index wages? Definitely yes. Legally there is no difference.

Budgetary organizations carry out indexations based on the level of inflation and various laws issued by federal, local and municipal authorities. Managers of private enterprises calculate increasing coefficients on their own, and they do not necessarily have to be tied to the level of inflation or other official data related to price increases.

Responsibility for evasion of obligations

The obligation to index the wages of their employees lies with the heads of enterprises not only within the framework of the Labor Code, but also in accordance with the definition Constitutional Court No. 2618-O dated November 19, 2015. However, not all of them strictly comply with this instruction. This is especially true for private businesses.

If wages do not increase along with inflation, then employees have the right to report the violation to the district court or to State inspection labor, based on . However, to prove the correctness of one’s position, it is necessary that the indexation mechanism be spelled out not only in the collective agreement or other local act, but also in the employment contract. And this is precisely the difficulty, since few companies even talk about indexing official documents. This question should be clarified at the hiring stage.

For refusal to index wages and for violation of other job responsibilities the following punishment is imposed:

• for officials – from 1000 to 5000 rubles;
• For legal entities– from 30,000 to 50,000 rubles;
• for individual entrepreneurs – a fine of up to 5,000 rubles.

The amount of fines is insignificant, but unpleasant. In addition, applications from workers to the State Labor Inspectorate may initiate a number of inspections, during which other, much more serious violations may be revealed.

The frequency of indexation is also established in local regulations or government sources of law. This is usually done when the consumer price index for the main product exceeds 101%. Recalculation is done from the 1st day of the month following the month of publication of the official inflation index.

In addition to the fact that timely indexation of wages is the responsibility of every manager, it is also necessary to remember that such a mechanism significantly increases the level of employee loyalty. Salary indexation is an excellent way to remind employees that the employer cares about their well-being and their real income. And they should not be neglected.