home Diseases Re-indexation of wages c. Algorithm for wage indexation in commercial organizations. Wage indexation in an employment contract

Re-indexation of wages c. Algorithm for wage indexation in commercial organizations. Wage indexation in an employment contract

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.

A salary increase is an increase in its size by decision of the employer and in the presence 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 remuneration 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	Carried out 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 acts 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 wage 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 the company’s local act specifies the indexation procedure, but the financial and economic indicator for its implementation is not selected. 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 of the Supreme Court of the 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 lower than the minimum wage);
increase in inflation rate;
rising consumer prices in your region;
growth in the cost of living of the working 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 the productivity 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 (sample below). Typically, indexation is carried out on the basis of an order from the head of the organization (sample below).

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 the 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?

Conditions of remuneration (including the size of the tariff rate or salary (official salary) of the 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 an employee’s official salary is indexed, 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 indexation clause may be contained in the employment contract concluded upon hiring (sample below). 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 a condition on wage 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 indexation order in local regulations

What liability does an employer face if he forgets to carry out indexation?

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

If there is a provision for wage indexation in a collective agreement or industry agreement, but the employer does not carry it out, 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 on the organization - in the amount of 30,000 to 50,000 rubles (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 Severo-Kurilsky 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– K. Yu. Sc., General Director of Actual Management LLC (Moscow):

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

Lali Chitanova– lawyer, partner of the Law Firm “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 amount of wages.

1 Clause 27 of the Industry Agreement on the Organizations of Press, Television and Radio Broadcasting and Mass Media between the Federal Agency for 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

Even a high official salary can be significantly reduced due to inflation. To prevent this from happening, the state provides for a calculation. This mechanism should work due to the fact that goods included in the consumer basket (necessary for normal human existence) become more expensive. The law obliges the employer to carry out salary indexation on time - this mitigates the consequences of inflation for employees. Calculating salary indexation is not a mercy of the employer towards employees, it is his responsibility. In case of evasion, the head of the organization may be brought to court.

Types of indexing

There are two types of wage indexation:

Retrospective. Salaries are indexed after increasing prices for goods.
Warning. Salaries are indexed based on forecasts of future price increases.

Who has the right to recalculation

In some cases, management tries to mislead employees by assuring that all inflation indexations are due only to employees of budgetary organizations. This is not true. The law obliges all organizations and associations operating on the territory of the Russian Federation to recalculate salaries taking into account inflation. The only difference is that in commercial structures the procedure for indexing wages is prescribed in both the collective and employment contracts. This means that the heads of private organizations themselves choose the order and procedure for carrying out indexation; the law requires only the fact of implementation.

What are the dangers of non-indexing?

The head of an organization who ignores the legal requirement for indexing cash payments to employees will be...

The fine may vary:

A person holding a leadership position will pay a fine of 1,000 to 5,000 rubles.
A small entrepreneur (not a legal entity) will suffer losses in the amount of up to 5,000 rubles (Article 5.27 of the Administrative Code).
A manager who has the status of a legal entity will be fined 30,000 - 50,000 rubles.

There is no criminal liability for violators, but the amount of fines is quite sensitive. A company found to have committed such violations will be subject to more frequent inspections and close attention from regulatory authorities. So it is easier for the employer to monitor how wage indexation is calculated for the company’s employees and whether this happens on time.

Let's summarize

When calculating wage indexation, the amount of financial assistance to the employee is not taken into account.
When indexing the salary of one employee, the salaries of absolutely all employees must be indexed.

Indexed wages will not completely cover the increased prices for essential goods. Indexation is intended to slightly soften the gap between the funds received and the ability of people to live on them.

Wage indexation in accordance with Article 134 of the Labor Code of the Russian Federation in non-budgetary organizations causes discussions in practice, the reasons for which are many - from the need for its implementation, procedure and registration, to the responsibility of employers for uncarried or incorrectly carried out indexation. These issues are not regulated by law. The purpose of this article is to consider the indexing procedure based on the analysis of regulatory legal acts and judicial practice.

Dimensions and frequency of indexing. Usually, to calculate the amount of indexation, it is proposed to be guided by the Basic Provisions on the procedure for monitoring consumer prices and tariffs for goods and paid services provided to the population, and determining the consumer price index (approved by Resolution of the State Statistics Committee of Russia dated March 25, 2002 No. 23). You can use data published on the Rosstat website www.gks.ru, the rate of inflation, which is indicated in the federal law on the federal budget for the next year, or the percentage of increase in the cost of living, published on the same website, or other indicators. When using each of the listed methods, the indexation amounts will vary (Orlova E. Salary indexation // Tax Bulletin. - 2013. - No. 1). This is confirmed by judicial practice (Cassation ruling of the Magadan Regional Court dated 07/13/2010 in case No. 21058/10, Cassation ruling of the Supreme Court of the Republic of Karelia dated 05/04/2010 No. 33-1248/2010).

The court, in the absence of a regulatory establishment of the indexation procedure, may apply the consumer price growth index calculated by state statistics bodies (Review of the Krasnoyarsk Regional Court dated 05/05/2008 “Review of the practice of considering civil cases by magistrates of the Krasnoyarsk Territory and the 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 the Baleysky City Court of the Trans-Baikal Territory dated 10/22/2008). None of the listed methods is mandatory, but indexation should always provide real protection against inflationary processes.

Interesting cases of use for calculating expected inflation rates (Orlova E. Salary indexation // Tax Bulletin. - 2013.- No. 1). Theoretically, this is possible, but if its actual level is higher or lower, then recalculation will be required. Expected indicators are convenient for planning an organization’s budget, but not for actual application, therefore the prevailing position is on the use of actual indicators, since it is the indices based on them that provide an adequate increase in the real content of wages (Kozina E.V. Methodology of wage indexation // SPS " Consultant Plus").

Trade unions have the right to participate in determining the amount of wage indexation (clause 2 of Article 22 of the Federal Law “On Trade Unions, Their Rights and Guarantees of Activities” dated January 12, 1996 No. 10-FZ, as amended on January 24, 2002). This is especially true in cases where the organization does not have enough funds to carry out indexation in full. In this case, in agreement with the trade union organization, indexation is carried out to the maximum possible extent, and then measures are taken to further increase the real content of wages. (Methodological recommendations for establishing indexation procedures in organizations of the non-budgetary sector of the economy. - clause 1.2. www.niitruda.ru/publications/Indexing.doc).

It is also necessary to distinguish indexation from other wage increases. An ambiguous attitude raises the question of the possibility of replacing indexation with a wage increase in a different manner. According to some experts, an “unplanned” increase in wages may be a reason not to index it in the corresponding period (N. Plastinina. Wage indexation: right or obligation? // Personnel service and personnel management of the enterprise. - 2013. - No. 2). This is confirmed by court decisions recognizing the increase in wages as indexation (Archive of the magistrate of court district No. 376 of the Presnensky judicial district of Moscow. Decision in case No. 2-145/08).

The opposite opinion is due to the fact that replacing indexation with an increase in the level of payment in a different order was allowed only in the Soviet Union (Gazette of the Congress of the ND RSFSR and the Supreme Council of the RSFSR. 1991. N 45. Art. 1488, 1489. - Art. 1), but at present the regulations of that period have lost force (Kozina E.V. Methodology of wage indexation // SPS “ConsultantPlus”). It is often stated that the organization’s employees should know that the wage increase carried out is indexation and not something else. The indexation procedure should be generally understandable (Orlova E. Salary indexation // Tax Bulletin. - 2013. - No. 1).

To resolve the debate that has arisen, it should be noted that the basis for the wage increase and its magnitude are of key importance. Wages represent equal pay for work of equal value. If its increase is associated with a change in the quantity or quality of labor, its conditions and other similar circumstances, then the decision not to index wages during the corresponding period will not correspond to the legitimate interests of the employee.

The size of the increase should provide a decent standard of living and protection against inflation. Thus, the Krasnoglinsky District Court of Samara, in its decision dated March 3, 2011, indicated that an increase in the official salaries of the organization’s employees by 5 and 10% (in different years) was not considered by employees as wage indexation, since the increase in the cost of the consumer basket was 120.1% . An increase in this case cannot be considered an alternative to indexation, since the latter’s goal—protection against inflation—has not been achieved.

A different situation occurred during the consideration of the case on the recovery of indexation amounts, which was submitted to the Magadan City Court. The collective agreement of the organization provided for annual indexation of wages, but later changes were made to the industry agreement, which applied to this employer, according to which indexation was replaced by an increase in the average monthly wage by at least 2% higher than the growth rate of the average monthly wage of the economy of the corresponding region. As a result, the increase in the average salary of the plaintiff during the disputed period was 12%, and the court, not seeing circumstances in the case that led to a decrease in the content of the plaintiff’s wages, rejected the claim. (Cassation ruling of the Magadan City Court dated August 17, 2010 in case No. 2-1143/10). Practice shows the positive attitude of the courts towards taking into account agreements of various levels in local regulations of employers (Decision of the Supreme Court in the case of February 24, 2004 No. 75-B04-1 // Trade Union Legal Newspaper. Insert to the weekly magazine "Solidarity". 2004. No. 32. p. 7). Thus, when developing an indexation procedure, industry agreements can be taken into account, if any exist in the industry to which the employing organization belongs. But the size of the increase, which ensures an appropriate increase in the real content of wages, remains the main criterion for choosing the order of such an increase. A different approach will lead to a violation of the employee’s rights and current legislation.

In addition, according to the courts, the need for wage indexation is due to rising consumer prices, but this does not mean that the amount of indexation and the procedure for its implementation must strictly correspond to the mechanism of this growth. That is, the procedure for increasing wages may be different, subject to strict provision of a decent standard of living for the employee. (Cassation ruling of the Magadan Regional Court dated July 13, 2010 in case No. 21058/10, cassation ruling of the Supreme Court of the Republic of Karelia dated May 4, 2010 No. 33-1248/2010).

As for the frequency of indexation, according to business customs, its shortest period is a month, and the longest is a year (Orlova E. Salary Indexation // Tax Bulletin. - 2013. - No. 1), and most often it is carried out annually (Plastinina N. Indexation wages: right or obligation? // Personnel service and personnel management of the enterprise. - 2013. - No. 2). Following this custom is not necessary; however, it is likely to violate the interests of the employee. There may be situations when the consumer price index grows more often than wages are indexed in accordance with local regulations. In this case, the actual content of wages does not increase, although indexation is formally provided for in the regulatory acts of the organization. Therefore, the implementation of indexation with a frequency exceeding one year, as well as the indexation of wages only if the organization has sufficient funds, is considered as a deterioration of the employee’s position (Kozina E.V. Methodology of wage indexation // SPS “ConsultantPlus”).

Registration of wage indexation. The absence of a definition of the procedure for indexing wages in the local regulations of the employer is classified as a violation. In particular, the Volgograd Regional Court in the appellate instance recognized as legitimate the demand of the prosecutor's office that the employer be obliged to provide for the procedure for wage indexation in local regulations. (Appeal ruling of the Volgograd Regional Court dated 07/05/2012 in case No. 33-6662/12).

The question of the proper design of the indexing procedure in each case is controversial. On the one hand, the amount of wages is one of the mandatory conditions of the employment contract (Article 57 of the Labor Code of the Russian Federation), must be specified in the contract with each employee and changed through the adoption of an additional agreement to it. At the same time, within the meaning of Article 57 and Article 72 of the Labor Code of the Russian Federation, familiarization of an employee with signature with local regulations containing an indexation condition does not constitute consent to subsequent changes to the terms of the employment contract (Orlova E. Salary indexation // Tax Bulletin. - 2013. - No. 1). This procedure is obviously not convenient for either the employer or the employee, since the amount of inflation in each period of time is unknown, and its periodic change in the contract requires a lot of time spent on the procedure for accepting the agreement.

On the other hand, Article 8 of the Labor Code of the Russian Federation does not provide for the inclusion of a provision on indexation in the employment contract with each employee and does not oblige the employer to do so.

The most rational would be to include in the employment contract a reference to a local regulatory act establishing the indexation procedure. This will mean that the specified act is endowed with the force of the terms of the contract and is part of the latter, on which an agreement was reached between the employee and the employer (see also: Orlova E. Salary indexation // Tax Bulletin. - 2013. - No. 1). If changes are planned to be made to a local regulatory act establishing the indexation procedure, then the corresponding decision is made taking into account the opinion of the representative body of workers (Article 135 of the Labor Code of the Russian Federation), who are notified in writing no later than two months in advance about the changes and their reasons (Article 72, 74 of the Labor Code of the Russian Federation). This need is confirmed by judicial practice (Appeal ruling of the Krasnoyarsk Regional Court dated October 15, 2012 in case No. 33-8706). If the indexation clause with reference to the relevant local act was previously absent from employment contracts, it should be included through an additional agreement.

Indexation in specific cases and amounts is formalized by orders; their absence is considered unlawful. (Interview. Directors of six Primorye enterprises were brought to criminal liability in connection with non-payment of wages http://www.rostrud.ru/press-centre/48/xPages/entry.9360.html). Indexed salaries are indicated in the staffing table (Plastinina N. Indexation of wages: right or obligation? // Personnel service and personnel management of the enterprise. - 2013.- No. 2).

Responsibility of the employer for failure to implement indexation. The employer's liability for failure to fulfill the obligation to index wages deserves special attention.

In accordance with Article 142 of the Labor Code of the Russian Federation, violation of wages entails liability of the employer and (or) his representatives. It is clarified that in the event of a delay in payment of wages for a period of more than fifteen days, the employee has the right, in accordance with the procedure established by law, to suspend work for the entire period until the delayed amount is paid. In addition, according to the Supreme Court of the Russian Federation, the employee’s exercise of the right to suspend work does not depend on the presence or absence of the employer’s fault in the delay in payments (Resolution of the Plenum of the Supreme Court of the Russian Federation dated March 17, 2004 No. 2 (as amended on September 28, 2010 No. 22) - p 57). This article does not establish what liability the employer and (or) his representatives bear in the event of failure to index wages and what protection measures the employee has the right to take advantage of.

Based on the analysis of current legislation, employees whose wages have not been indexed, regardless of the presence or absence of a corresponding condition in employment contracts and other local regulations, have the right to apply for protection of their labor rights to the State Labor Inspectorate, the prosecutor's office or the court.

Disputes initiated by employees individually, regardless of the number of persons filing similar appeals, are individual labor disputes and are resolved through civil proceedings (Articles 381, 398 of the Labor Code of the Russian Federation).

Inflation is a well-known fact that cannot be proven by virtue of Article 61 of the Civil Procedure Code of the Russian Federation, and the index to be applied is chosen by the court (Review of judicial practice of the Supreme Court of the Russian Federation // Bulletin of the Supreme Court of the Russian Federation. 2003. No. 6).

There are situations when employees, when filing a lawsuit to force an employer to carry out indexation, refer to the Fundamentals of Legislation of the USSR and republics on indexation of income of the population, adopted by the Supreme Soviet of the USSR on June 25, 1991 No. 2266-1. On the one hand, references to such acts can be called inappropriate due to the presence in the current legislation of the Russian Federation of provisions on the employer’s obligation to index wages. On the other hand, according to Article 423 of the Labor Code of the Russian Federation, acts of the USSR can be applied to the extent that does not contradict the legislation of the Russian Federation. By virtue of Article 3 of the Fundamentals, the amount of indexation is calculated by multiplying income by the consumer price index. It is this index, as mentioned earlier, that is used in legal proceedings when resolving disputes. Therefore, the courts satisfy the demands based on the legislation of the USSR, since Article 134 of the Labor Code of the Russian Federation contains a reference to the “procedure established by law,” and the latter does not provide for such a procedure (Archive of the magistrate of judicial district No. 376 of the Presnensky judicial district of the city of Moscow. Decision in case No. 2-145/08).

If a collective labor dispute is initiated, including when a trade union organization applies for the protection of workers’ rights, it is resolved through conciliation procedures (Articles 398, 401 of the Labor Code of the Russian Federation) and is not subject to consideration in court.

Administrative liability is also provided for failure to index. If the employer does not comply with the indexation condition contained in local regulations or an industry agreement, then liability arises under Article 5.31 of the Code of Administrative Offenses of the Russian Federation. If indexation is not provided for in local acts and is not carried out, then the head of the organization is held accountable on the basis of Part 1 of Article 5.27 of the Code of Administrative Offenses of the Russian Federation.

Conclusions. The establishment of an indexation procedure in local regulations of the organization and its timely implementation are the responsibilities of the employer. Indexation is carried out at least once a year, taking into account the actual inflation growth rates determined by state statistics bodies. A link to the local regulatory act defining the indexation procedure is included in the employment contract with the employee. The implementation of indexation depending on the availability of funds in the organization, as well as its implementation in amounts that do not ensure an adequate increase in wages, are illegal. If the employer fails to fulfill the obligation to index wages, the employee may apply for protection of his rights to the State Labor Inspectorate, the prosecutor's office or the court. The courts consider individual appeals, and if there is a collective labor dispute, it is resolved through conciliation procedures within the organization. In addition to financial liability to the employee, the employer bears administrative liability.

The above procedure for wage indexation corresponds to the development trends of domestic labor legislation, since according to the draft Federal Law on amendments to Article 134 of the Labor Code of the Russian Federation, it is planned to supplement this article with a norm on indexation in connection with the increase in consumer prices according to the Federal State Statistics Service at least once per year (Draft Federal Law “On Amendments to Article 134 of the Labor Code of the Russian Federation” // SPS “ConsultantPlus”).

Vladimir Alistarkhov, legal expert:

Article 134 of the Labor Code of the Russian Federation provides for the obligation to index wages for budgetary organizations, which seems logical and legal, since the corresponding decision on indexing was made by the state, that is, in fact, the employer for employees of budgetary institutions.

As for commercial organizations, as correctly stated in Article 134 of the Labor Code of the Russian Federation, wage indexation should be provided for in the manner established by the collective agreement, agreements, and local regulations of the employer.

In other words, the legislator provides for the possibility of indexing wages in commercial organizations, but without “coercion” in terms of the amount and indexation procedure, leaving this to the owners of the company and its management personnel, which seems legal, since only the employer has the right to make the final decision on indexing wages taking into account all economic realities.

The analyzed article represents a non-alternative option for indexing wages for commercial organizations, taking into account the interests only of employees, but completely ignoring the interests of the employer.

It should be noted that the procedure for indexing wages for commercial organizations should be advisory in nature.

In turn, each individual private company can finalize the proposed procedure for indexing wages, taking into account all the circumstances, including taking into account the profitability of the business, the goals and objectives set for the company, the industry of doing business and other equally important aspects.

Otherwise, obliging commercial organizations to index wages according to a template, in the event of a negative development of the situation, the business may be “suffocated,” which sometimes needs to optimize its activities by reducing wages in order to overcome the crisis or due to tougher competition in a particular segment of the economy.

One can argue with the conclusion in the article that the implementation of indexation in connection with an increase in consumer prices should not depend on an increase in wages for employees for another reason. In this case, the employer must have a choice: if he increases the employee’s wages in connection with achievements in work, then, accordingly, the employer has the right not to index the wages of the corresponding employee for this period.

In this case, any other increase in wages must be no less than the amount of possible wage indexation.

At the same time, if the employer is ready to index the employee’s wages, despite another increase in wages, then why not, because this is his right.

The procedure for indexing wages proposed in the analyzed article does not consider the issue of the dependence of the indexation value on the size of wages, which does not seem entirely correct in relation to workers with low wages.

It may be necessary to rank the amount of indexation depending on the size of workers’ wages, because there is a difference in the importance of indexation for workers who earn a million rubles a month and for workers who earn ten thousand rubles a month.

The opinions of the courts regarding the fact that the need for wage indexation is due to the increase in consumer prices look quite controversial, since the courts, when considering specific cases, do not take into account how the increase in consumer prices negatively affects the profitability of the employer’s activities.

For example, for an employer, with rising consumer prices, loans issued by a bank for business development may become more expensive. Due to rising consumer prices, the employer can purchase raw materials at a higher price, which reduces the employer’s income or, at least, leaves it at the same level, which raises the question of how the employer will pay for wage indexation if the employer’s income the same as before?

In other words, wage indexation, tied only to an increase in consumer prices, not only “gets into the pockets” of business owners, but also affects the business itself, right up to the insolvency of the employer, which is bad for everyone, including employees, so as there is a threat of job loss.

Wage indexation should be provided for by internal regulations, and it is desirable that indexation be carried out no more than once a year, which reduces the employer’s labor costs and also encourages the employee to perform work efficiently and responsibly throughout the year.

In general, the option of wage indexation proposed in the article, tied only to rising consumer prices, does not take into account the interests of the employer at all, which can sometimes lead to disastrous results.

Moreover, it is assumed that for non-indexation of wages, the employer should be held liable without the employer’s right to self-defense, without regard to the state of the employer’s business at a particular moment and whether it is currently able to index wages to the required level. sizes.

The option of indexing wages without taking into account the interests of the employer indicates the shortcomings of the proposed procedure for indexing wages and the need for its improvement.

It is necessary to additionally develop a list of grounds under which the employer has the right not to index wages, including due to the deterioration of its economic indicators.

In addition, an employer who represents a private business may be given the opportunity to choose between indexing wages depending on rising consumer prices or depending on the dynamics of growth and decline in business economic indicators, which, at a minimum, will allow the employer to optimize its activities and stay afloat.

Changes and features of salary reporting in 2019. New in the calculation and taxation of wages and benefits.

Employers often confuse two concepts: salary indexation and salary increases. In contrast to the salary increase, which the employer carries out according to his decision and if there are financial opportunities, indexation is a guarantee of wages and must be made to all employees working under an employment contract (Definition of the Constitutional Court of the Russian Federation No. 913-O-O).

It says that measures to ensure an increase in the level of real wages are included in the system of basic state guarantees for the remuneration of workers. These measures, according to , consist of indexing wages taking into account rising consumer prices for goods and services. The amount of wage indexation may correspond to the consumer price index for goods and services officially established at the end of a certain period (for the country as a whole or in a particular region). The consumer price index for goods and services can be found on the official website of Rosstat. It may also correspond to the amount of inflation, which is enshrined in the federal law on the federal budget. In addition, the amount of wage indexation may correspond to the increase in the cost of living of the working population.

It is important to take into account that government agencies and municipal institutions index wages in the order that comes down from above through regulatory documents. Other employers are required to prescribe the indexation procedure in local regulations. It states that “if the organization’s local regulations do not provide for such a procedure, then, given that wage indexation is employer's responsibility“We believe that it is necessary to make appropriate changes (additions) to the local regulations in force in the organization.” That is, Rostrud directly says that the employer is obliged to prescribe the procedure for wage indexation.

Frequency and procedure for salary indexation

If an inspector from the state labor inspectorate during an inspection reveals that none of the company’s local regulations stipulate the conditions and procedure for wage indexation, this will be the basis for bringing the employer to administrative liability under. Violation entails a warning or the imposition of an administrative fine on officials in the amount of 1,000 to 5,000 rubles; for persons carrying out entrepreneurial activities without forming a legal entity - from 1,000 to 5,000 rubles; for legal entities - from 30,000 to 50,000 rubles.

What needs to be specified in local regulations:

frequency of salary indexation;
the amount of salary indexation (the company can focus on the consumer price index for goods and services published on the Rosstat website, or on the inflation rate published in the federal law on the budget of the Russian Federation);
part of the salary that will be indexed.

The frequency largely depends on both the integrity of the employer and his financial capabilities. Depending on which increase factor the employer chooses, indexation can be carried out once a month, once a quarter or once a year. At the same time, for quarterly indexation it is better to choose the cost of living indicator, and for annual indexation - the inflation indicator.

The procedure for indexing wages chosen by the employer is enshrined in a collective agreement or local regulation.

Since the current legislation does not establish a specific procedure for indexing wages, the employer making it for the first time must include a provision on the employer’s obligation to periodically increase wages in a local regulation or collective agreement. For this purpose, you can provide a separate chapter in one of these documents or adopt a new local regulation. After this, all employees must familiarize themselves with the rules of indexation against signature.

Indexation of the patch is carried out by order of the manager. The order is the basis on which changes are made to the staffing table and additional agreements are concluded to employment contracts on salary indexation. It is registered in the journal for registering orders or instructions.

Next, you need to familiarize employees with the order on salary indexation. Employment contracts indicate non-indexed salaries and allowances, therefore additional agreements must be concluded with employees to change the terms of employment contracts and indicate new indexed allowances and salaries.

Indexation applies to all employees of the organization, therefore, when calculating average earnings when calculating vacation pay, this increase must also be taken into account. In this case, there are two options for calculating the increasing coefficient:

If only salaries are indexed, then the formula is used:
New salary / salary before increase
If indexation affects the entire wage system, then the formula is used:
New salary + new monthly payments / salary before increase + previous monthly payments

Requirements for salary indexation in 2019: comments from the Ministry of Labor

The department once again recalled the content and that ensuring an increase in the level of real wages includes wage indexation in connection with rising consumer prices for goods and services. Ordinary employers, unlike government agencies, local governments, state and municipal institutions, index salaries in the manner established by the collective agreement, agreements, and local regulations. Government agencies and municipal institutions do this in the manner established by labor legislation and other regulatory legal acts containing labor law norms.

Since labor legislation does not provide for a uniform method of wage indexation for all employees, the rules are determined based on certain factors:

depending on the source of financing of organizations;
laws and by-laws - for government agencies;
collective agreement, agreement, local regulations - for other organizations.

Indexation is an increase in workers’ wages at the rate of inflation, while the employer has the right to further increase wages for certain categories of workers, as specified in the Letter of the Ministry of Labor.

Experts note that salary increases can be achieved in different ways:

by proportionally increasing all payments provided for by the organization’s remuneration system and, accordingly, the employees’ employment contract;
by increasing individual payments included in the salary (for example, increasing the salary (the share of the tariff in the salary structure)).

The employer chooses the most appropriate method, taking into account the opinion of the representative body of employees. But the most important thing that the Ministry of Labor draws attention to is that ensuring an increase in real wages is the responsibility of the employer.

New legal norms establish the obligation of business entities who act as employers to index the remuneration of the company's employees working under employment contracts every year. 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

Several years ago, a ruling by the Constitutional Court established the obligation of employers to carry out indexation of remuneration on a mandatory basis 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:

Order to introduce a new section “Procedure for indexation of wages” into the Regulations;
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, with different indexation coefficients set for different categories of employees (but not less than the minimum amount), 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 the level of his salary is an 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.