Indexing requirement wages, as a rule, is not considered by employers as mandatory element labor relations. However, its necessity is established by the Labor Code of the Russian Federation. How to implement this norm, can it be ignored, and what are the consequences of failure to comply?
From the Determination of the Constitutional Court of the Russian Federation dated June 17, 2010 No. 913-О-О:
\"..Wage indexation should be provided to all persons working under an employment contract\".
Indexing is required
Wage indexation is one of the main state guarantees for remuneration of workers (Article 130 of the Labor Code of the Russian Federation).
For reference
Indexation is one of the ways to protect the population... from inflation, which consists in the fact that the state and other entities (for example, employers)... increase cash income... citizens in accordance with rising prices... This maintains the purchasing power of the population and the average real income of people.
Modern economic
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Two years ago, the Constitutional Court of the Russian Federation indicated that the employer is obliged to carry out indexation (Definition of the Constitutional Court of the Russian Federation of June 17, 2010 No. 913-О-О). This position is shared by Rostrud.
This is all good, of course. But we do not have a single indexing mechanism. The Labor Code only states that indexation is carried out (Article 134 of the Labor Code of the Russian Federation):
– in budgetary organizations – in the manner established by labor legislation and other regulatory legal acts. However, there is still no such order. Therefore, the salaries of public sector employees at various levels are indexed only according to a special signal - an order of either the Government of the Russian Federation (Order of the Government of the Russian Federation dated May 31, 2011 No. 957-r), or the executive body of a constituent entity of the Russian Federation or municipality;
– in commercial organizations – in the manner established by the collective agreement, agreements, local regulations. But, firstly, not all companies have such documents. Secondly, even if they exist, the indexing order is not always established in them. This can mainly be boasted by large companies that are subject to industry agreements that explicitly stipulate the obligation to index wages.
It turns out that the indexation procedure (including its frequency) is entirely left to the discretion of the employer. And, taking advantage of this, unscrupulous employers may well stipulate in their local regulations that the organization carries out indexation... once every 20 years. And what? Is there order? Eat. How often indexing is carried out is a personal matter for the organization. The Labor Inspectorate will no longer be able to find fault with the employer!
We warn the manager
If a collective bargaining agreement or agreement contains a condition on salary indexation, but it is not met, the labor inspectorate may fine the employer 3,000-5,000 rubles, or issue a warning (Article 5.31, Part 1 of Article 23.12 of the Code of Administrative Offenses of the Russian Federation). Even citing the difficult financial situation of the company will not save you from liability.
It also happens that organizations simply include in employment contracts a phrase like: “If there are financial opportunities, the Employee’s salary can be indexed according to the orders (instructions) of the Employer.”
That is, the right, and not the obligation of the employer, to index the salaries of employees is prescribed.
In turn, Rostrud believes that if the indexation procedure is not provided for in local regulations organization, then they need to be supplemented with relevant provisions (Letter of Rostrud dated April 19, 2010 No. 1073-6-1).
At the same time, we were able to find a court decision, which states that if the conditions and procedure for indexation are not stipulated by collective or labor agreements or local acts, then the employer is not obliged to index wages at all (Cassation ruling of the Perm Regional Court dated August 10, 2011 No. 33 -8127). At the same time, the court did not take into account the position of Rostrud, saying that its Letter is not a normative act.
The procedure for indexing wages
So, commercial organizations determine the procedure for indexing tariff rates (official salaries) independently and establish it in collective agreements, agreements or local regulations (Article 134 of the Labor Code of the Russian Federation).
In practice, industry agreements contain a separate clause on the procedure for indexing wages of industry workers or a reference to collective agreements and local regulations.
When developing an indexation procedure, the employer must provide for:
– indexing mechanism;
– frequency of indexing;
– list of indexed payments.
Indexing mechanism.The size of indexation depends on the choice of indicator for its implementation. This indicator could be:
1) or an officially established index consumer prices for the country as a whole or in a separate region (Rosstat data on consumer price indices (monthly) are published on its official website www.gks.ru):
– all-Russian (www.gks.ru/Prices/Consumer prices);
– regional – on the websites of territorial bodies of Rosstat (for example, indices for Moscow can be found at: http://moscow.gks.ru/Prices and tariffs/Operational information/Consumer prices);
2) or the amount of inflation specified in the annual federal law on the federal budget or the budget of the corresponding region in which the organization operates. Thus, the projected inflation rate in Russia for 2013 at the level of 5% is provided for in clause 2 of Art. 1 of the Federal Law of December 3, 2012 No. 216-FZ \"On the federal budget for 2013 and for the planning period of 2014 and 2015\";
3) or the percentage of growth in the living wage of the working-age population for the country as a whole or for a specific region. The cost of living is determined for the entire Russian Federation by the Government of the Russian Federation quarterly on the basis of the consumer basket and Rosstat data, and for a specific region - in the manner prescribed by the relevant law of the constituent entity of the Russian Federation (clauses 1, 2 of Article 4 of the Federal Law of October 24, 1997 No. 134-FZ \"On the living wage in Russian Federation\"), and is published on the official website of Rosstat www.gks.ru. At the regional level, the cost of living is determined in the manner established by the constituent entities of the Russian Federation;
4) or other indicators reflecting rising prices for goods and services.
For each option, the indexing size is different.
Note! An increase in consumer prices for goods and services is the basis (reason) for indexing workers' wages, but not a mandatory value for such indexation. Therefore, the amount of indexation determined by a collective agreement, agreement or local regulation does not necessarily have to correspond to changes in the consumer price index. For these purposes, federal and regional inflation indicators can also be used.
Indication in Art. 134 of the Labor Code of the Russian Federation to carry out indexation in connection with an increase in consumer prices for goods and services only means that an increase in consumer prices for goods and services is the basis (reason) for wage indexation, but not a mandatory value of such indexation. This also confirms arbitrage practice courts of general jurisdiction (Cassation ruling of the Magadan Regional Court dated July 13, 2010 in case No. 21058/10, Cassation ruling Supreme Court Republic of Karelia dated 05/04/2010 No. 33-1248/2010).
At the same time, in the absence of an indexation procedure established in a collective agreement, agreement or local regulatory act, the court may apply the consumer price growth index calculated by state statistics bodies to index wages (see Review of the Krasnoyarsk Regional Court dated 05.05.2008 \"Review of practice consideration of civil cases by magistrates Krasnoyarsk Territory and appellate practice of district courts of the Krasnoyarsk Territory\”, Decision of the Mednogorsk City Court of the Orenburg Region dated 04/04/2010, Decision of Baley City Court of the Trans-Baikal Territory dated October 22, 2008).
Example
LLC \"Gamma\" in the Regulations on remuneration and in employment contracts with employees provides for the following procedure for wage indexation:
\”Indexation is carried out once a year - for the previous financial year in January of the next financial year. In this case, the expected level of inflation in the country is used as an indexation coefficient with a one-time subsequent recalculation (from January to December) to the actual level of inflation according to official data from Rosstat on the date of the next annual indexation."
Frequency of indexing. The collective agreement, agreement or local regulation also needs to determine the frequency of indexation - monthly, quarterly, semi-annually or annually in accordance with the indexation coefficient.
List of indexed payments. The employer has the right to determine which payments are indexed and which are not - in particular, only official salaries are indexed, and bonuses in a fixed amount are not indexed.
This is due to the fact that indexation of salary (tariff rate) will automatically lead to an increase in payments established as a percentage or a multiple of it both by labor legislation and labor and collective agreements, as well as local regulations. These are, in particular, the following surcharges and allowances established by law:
- for work in hazardous or hazardous conditions labor and heavy work (Article 147 of the Labor Code of the Russian Federation, clause 1 of the Decree of the Government of the Russian Federation of November 20, 2008 No. 870);
– for work on weekends and non-working days holidays(Article 153 of the Labor Code of the Russian Federation);
– for work at night (from 22:00 to 6:00) (Article 154 of the Labor Code of the Russian Federation, Decree of the Government of the Russian Federation of July 22, 2008 No. 554).
These and similar payments will increase from the month for which the salary will be indexed.
In addition, you have the right to set the maximum amount of employee income, within which such income is indexed to in full. For example:
\”The following payments to company employees are subject to indexation:
– official salary – within an amount not exceeding 10,000 rubles;
– tariff rates;
– piecework and time rates.
The following are not subject to indexation:
– part of the official salary exceeding 10,000 rubles;
– additional payments, allowances, bonuses set in a fixed amount;
– earnings retained by a dismissed employee for the period of employment\”.
Documentingindexing
The procedure for wage indexation chosen by the employer must be recorded in a collective agreement or local regulation, for example in the Regulations on Remuneration (Example 1)
When hired and before signing an employment contract, an employee must be familiar with the local regulations of the employer, incl. with the Regulations on Remuneration, which provides for the procedure for indexing wages (paragraph 10, part 2, article 22 of the Labor Code of the Russian Federation). At the same time, it is necessary to remember that familiarization of the employee with the Regulations on Remuneration, which contains a condition on salary indexation, does not constitute the employee’s consent to change the terms of his employment contract in terms of the amount of remuneration (Articles 57, 72 of the Labor Code of the Russian Federation).
Remember that the absence of wage indexation provisions in their local regulations or collective agreements is classified as labor inspectorate as a violation requirements of labor legislation.
In addition, taking into account the frequency of wage indexation, the employer must issue separate orders on its implementation. An example of such an order is given in example 2
The procedure for indexing wages presupposes a certain system for increasing wages, taking into account rising prices and the level of inflation (without changing the labor function and other terms of the employment contract).
The amount of wages, according to Art. 57 of the Labor Code of the Russian Federation, is one of mandatory conditions employment contract. As a result of indexation, workers' wages increase, i.e. one of the mandatory conditions for remuneration is changed. And any change in the terms of the employment contract, in accordance with Art. 72 of the Labor Code of the Russian Federation, is allowed only by written agreement of the parties. Therefore, the provision for indexation of wages must be included in the employment contract (example 3)
If the indexation clause was initially included in the employment contract, you will no longer be able to unilaterally change the indexation procedure in a local regulatory act (for example, if you want to change the indexation frequency or change the coefficient of the consumer price index to the inflation index). After all, the previous order has already been fixed in employment contract, and it can only be changed by mutual agreement parties (Articles 57, 72 of the Labor Code of the Russian Federation). Accordingly, if necessary, changes will have to be made to the local regulatory act and an additional agreement to the employment contract will be concluded.
If the wage indexation clause was not initially included in the employment contract, you need to:
– or enter into an additional agreement to the employment contract, providing for a condition on salary indexation (see clause 4.2 of example 3 of the employment contract). This best option in terms of labor intensity. But if the indexation procedure in a local regulatory act changes, a new additional agreement to the employment contract will have to be concluded;
- or 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 option is very labor-intensive, but if you plan to frequently change the indexing order in a local regulatory act, then it is optimal for you.
New legislative norms establish the obligation of business entities that act as employers to index labor remuneration every year employees firms working under labor contracts. Many employers believe that only public sector organizations should do this. However, it is not. Wage indexation in 2018 in commercial organizations is also mandatory.
Legislative acts establish that it is necessary to increase wages if government agencies establish inflation in the current year. Indexation of remuneration can be carried out by companies independently on a voluntary basis.
Voluntary indexation
The indexation procedure is legislatively established only for public sector organizations. Commercial firms can carry it out in the manner prescribed by their regulations. But at the same time, they need to remember that the wage increase itself must be carried out.
Companies can issue a separate regulation on wage indexation, or include a section of the same name in the wage regulation.
In accordance with them, management issues an order to index wages in 2019, which is the basis for its implementation in the company.
Mandatory indexing
A few years ago, by definition Constitutional Court it was established that employers are required to carry out indexation of remuneration for all organizations, regardless of their form of ownership and type of activity.
As soon as a government agency issues a regulation, according to which the official level of inflation is fixed in the country, all companies are obliged to raise wages. At the same time, evading it in accordance with the Labor Code of the Russian Federation is a violation of the provisions of labor legislation.
In 2018, the Government Decree set the inflation rate for the purpose of salary increases at 4%. This coefficient should be used when indexing the salaries of public sector employees. Commercial companies can use it, or set this indicator themselves.
Important! The company's management also needs to remember that if , then the level of wages at the enterprise must be brought to a new value.
For this increase to be considered indexation, it must affect all employees of the company. If the salary was increased only for part of the staff when bringing its level to the minimum wage, the company may be punished for failure to index.
When is it carried out?
The timing of indexation is established by the company's management in agreement with the trade union body in the Collective Agreement and is reflected in the relevant Regulations.
Many companies choose a date such as February 1, since it is by this date that the Government Decree is issued, which sets the level of growth in consumer prices.
However, it could be the beginning of any month. The main thing is that this period is recorded in the company’s local regulations and agreed upon with the trade union, if there is one. That is, you can index on March 01, April 1, May 01, etc.
At the same time, the administration must take into account that if indexation is carried out from the first day of the month, then it is also taken into account, and the salary, taking into account the coefficients, should already be included in the accruals for this period.
Attention! Indexation can be carried out either annually or quarterly. This point is established by the enterprise in a regulatory act.
Indexation coefficient
When choosing a method for calculating the remuneration indexation coefficient, a company can use:
- Approved consumer price growth index. Its significance can be approved both by the federal authorities and at the regional level. The subject independently chooses which value he will use during the salary increase. This point should be reflected in the local acts of the organization.
- The inflation rate officially adopted by government authorities for the purpose of indexing the salaries of public sector employees. This indicator can also be adopted by the federal authorities or a federal subject. By government decree, this figure for Russia as a whole was set in 2018 at 4%.
- The growth rate of the cost of living for the employed population. This indicator can also be federal or regional.
- Another indicator chosen by the employer in agreement with the trade union bodies at the enterprise, recorded in the relevant Regulations of the organization.
Attention! When choosing a method for calculating the indexation coefficient, you must also take into account its validity, since regulatory authorities, for example, tax authorities, may question these expenses and refuse to include them in the tax base. The most important thing is to correctly formalize the choice in local documents. Therefore, many companies prefer to take official indicators as a basis.
The procedure for salary indexation in 2019
Step 1. Check the salary situation
Data on salary indexation must be specified in one of the organization’s internal documents. The most convenient way to do this is in the Regulations on Remuneration.
Often the requirement to include such a clause in a document comes from the company’s trade union. They can formulate their proposal and send it to the administration for consideration. However, the management itself can take the initiative to change internal documents, and therefore submits the project for discussion by the trade union or work collective.
It is necessary to issue an order that made the necessary changes; this document indicates:
- The order is entered into the Regulations new section“The procedure for indexing wages”;
- List the points of the new section that will determine the date and size of indexing. It is allowed to index employee earnings not once a year, but after each quarter based on the price index established in it;
- Determine those responsible for executing the order and communicating its contents to employees.
In the future, this step is omitted, and indexation is performed by issuing an order from the manager with reference to this section of the Regulations.
Attention! If indexation is a serious process, different indexation coefficients are established for different categories of workers (but not less than minimum size), then instead of making changes, it would be more optimal to develop a separate Regulation on wage indexation.
Step 2. Calculate the new salary amount
The responsible employee must calculate the new earnings of all employees. The coefficient used is the value specified in the Regulations on remuneration or other internal document. Typically, the consumer price index for the previous year is used for these purposes.
Since the Labor Code specifies the requirement for indexation, it includes not only the salary part, but also compensation, incentive payments, additional payments for work in other conditions, etc. Thus, indexation must be carried out in full on all parts of the salary. Failure to comply with this requirement may result in a fine being imposed on the employer.
Attention! Based on the calculations received, a new one is drawn up, or changes are made to the existing one by order of the director. However, given the number of changes, it is best to issue and accept a new document.
Step 3. Issuing an indexation order
The leader must publish.
The document states:
- The basis is the Labor Code, as well as the section from the Payment Regulations regarding indexation;
- An order to perform indexation by the established coefficient;
- Order to put into effect a new staffing table;
- An order to carry out further salary calculations taking into account this order.
Step 4. Execution of additional agreements
A discussion with the employee about his salary level is essential condition. Therefore, its change is possible only with the consent of the employee himself.
To secure the new amount of earnings, it is necessary to draw up an additional agreement. This form is issued in two copies, the employee must sign each and the company copy must also be marked as having been received.
Responsibility for lack of indexing
The Labor Code establishes that the employer is obliged to index the earnings of his employees due to an increase in prices for goods and services. In this case, the procedure, how this will happen, the size and other parameters are established in a collective agreement, local act, agreement.
In the event that, after the end of the calendar year, Rosstat recorded an increase in prices, but the employer did not index wages, he may be held administratively liable. It does not matter whether the organization issued a document establishing indexation or not.
At the end of December 2017, the Ministry of Labor issued a letter in which it clarified questions about wage indexation. In particular, it establishes that if the employer does not index wages, then he thereby violates the provisions of the Labor Code. Moreover, it is believed that if the procedure has not been completed, it means that employees do not receive their salary in full.
This entails punishment according to the Code of Administrative Offenses:
- For officials - a warning or a fine from 1 to 5 thousand rubles;
- For an entrepreneur – a fine of 1 to 5 thousand rubles;
- For companies - a fine of 30 to 50 thousand rubles.
Is annual salary indexation required? And in what order is wage indexation calculated?
From the article you will learn:
What is wage indexation?
Wage indexation is a procedure provided for by labor legislation. Article 134 is devoted to these issues Labor Code RF.
In fact, wage indexation represents an increase wages. That is, indexation ensures that the real content of wages corresponds to the increase in consumer prices for goods and services.
Wage indexation in budgetary institutions is carried out according to the rules established by law. The corresponding standards are established at the federal, regional or local level, depending on the subordination of the institution.
Download documents on the topic:
For employers - commercial organizations, the procedure carrying out indexation not regulated at the legislative level. The rule for them is that the procedure must be carried out without fail, that is, wage indexation is the responsibility of the employer . At the same time, the procedure for increasing wages Each commercial organization installs it independently. To do this, she contributes the necessary conditions V collective agreement or local act.
Legislators have repeatedly addressed the topic of indexing and are considering bills that are designed to regulate this procedure in commercial organizations. Attention to this issue is due to the fact that many employers, without a specific mechanism for increasing wages, simply refuse this procedure. But to date, none of the bills have been approved. We will discuss the latest innovations on this topic below.
Let's pay attention again. The current legislation does not establish an indexation procedure for commercial organizations. The legislator establishes only the employer’s obligation to increase wages. The procedure, size and timing of indexation must be established by the employer in its local act.
Documentation of salary indexation
In order to document the indexing activities carried out in the organization, it is necessary to:
Let's look at each of these actions in more detail.
Indexation order
After you have made the necessary changes to the collective agreement, issue an order for a wage increase. Familiarize your employees with it. The employee can put a signature confirming this in the document itself or in an appendix to it. Issue an order for wage indexation every time you carry it out.
Legislator's plans for mandatory indexation
The State Duma adopted in the first reading a bill according to which all employers will have to index employees' wages annually. Let's tell you in more detail.
According to the text of the project, indexation will need to be carried out annually for all workers, with the exception of those whose salary exceeds ten times the subsistence minimum, which is established for able-bodied citizens. It is proposed to equate the minimum increase factor with the consumer price growth index. Employers will have to establish the salary procedure by local regulations.
You can read more about this bill.
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 local acts regulate this process? 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.
The indexation of salaries of public sector workers is carried out from the state treasury, the indexation of pension payments is from, the indexation of social benefits is 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:
- adoption of a local act or making amendments to an existing document (normative collective agreement, regulations);
- familiarization of enterprise employees with the text of the document for signature;
- publication by the manager of an order to carry out indexation (and familiarization of staff with it);
- statement staffing table and wage regulations, mutatis mutandis;
- 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 real inflation over the past 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 actual inflation is higher than predicted, then next year The salary is recalculated, that is, the employee is 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. Together with wages the employer is obliged to index vacation pay in a timely manner.
To calculate vacation pay and compensation for unused days vacation, the amount of accrued salary is divided by 12. The final result is divided by the average amount 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 wages, are guided by the norms of other federal and local laws, and private business- 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 ruling of the 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 the State Labor Inspectorate, on the basis of. However, to prove the correctness of your 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 in any 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– fine 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 remedy remind employees that the employer cares about their well-being and their real income. And they should not be neglected.
