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Indexation of salary increase. Indexation coefficient. Indexation = salary increase

An employee's salary is subject to indexation, that is, an increase in accordance with the rising cost of living. What will be the specifics of the procedure in public and private enterprises, the general procedure, as well as which payments are subject to it and which are not. How salary indexation is carried out: calculation of coefficients and payments.

As Article 134 of the Labor Code states, employers should increase wages along with the rise in consumer prices. This is called indexing. Letter of Rostrud No. 1073-6-1 indicates that the regulations of the employing organization must establish the procedure for its implementation, which each such organization is free to establish independently.

And although the legislation clearly indicates that indexation is mandatory, it does not provide specific instructions on how often the procedure should be carried out, or how to calculate the amount of indexation. Thus, this is left to employers, which allows unscrupulous management not to take this norm into account and not carry out indexation for 2-3 years in a row.

The absence of a unified regulation gives rise to many ambiguities and conflicts between employers and employees or regulatory authorities. In particular, the following questions often arise:

  • What should be indexed – only , or also the variable?
  • How often should indexing be carried out?
  • How should it be legally formalized?
  • What indicators should be taken as a basis when calculating its size?

As for the latter, if you rely on , it is worth considering price increases as the best guideline. In addition to it, indicators such as inflation and the cost of living for the working population can be used as a criterion for indexation. Both federal and regional indicators can be taken.

Indexing Features

In budgetary organizations

In them, salaries are indexed according to the orders of government bodies. Thus, in 2017, indexation is simply not carried out, however, starting from January 1, 2018, it will be carried out at a rate of 4%. In general, the Federal Law “On the State Civil Service of the Russian Federation” states that it should be carried out annually, and the inflation rate is taken as a basis.

In commercial organizations

Wage indexation, as already noted, is not regulated very clearly; in particular, the Labor Code does this only in general terms. Therefore, in a commercial organization, the employer himself determines how often it should be performed (but if this is done less than once a year, then he may have problems), and what indicators to tie it to. The main nuances of indexation should be determined by the internal regulations of the enterprise.

If there are no mechanisms for indexing at the enterprise, and as a result it is not carried out, this is a violation of the law and should entail fines.

Employees have the right, within three months from the moment the violation was discovered, to file a lawsuit and demand indexation and payment of the amounts that the organization underpaid them.

Sometimes the management of commercial organizations assures their employees that indexation is carried out only for those who work at state-owned enterprises. This is incorrect, and if a company does not have a clearly regulated indexation procedure, then this is considered a violation of labor laws. According to Article 5.27 of the Code of Administrative Offenses, the following fines are imposed: for an official or private entrepreneur - 1,000-5,000 rubles, for a legal entity - 30,000-50,000 rubles. In addition, if a violation of the law has already been recorded in a company, it will be checked more often in the future.

Implementation procedure

It must be set out in a document that guides the enterprise when carrying out indexation. When it is carried out for the first time, a corresponding normative act is adopted. Employees must review the document and sign to confirm this.

If an employee is just being hired, then he must be familiarized with the indexation document immediately so that he has an idea of ​​the procedure for its implementation. The Employment Agreement also records information about it, and when wages change, the corresponding changes in it are recorded in an additional agreement.

That is, the order of indexing will be as follows:

  • A local act is adopted indicating the conditions for its implementation, or amendments are made to an existing one.
  • Employees are familiarized with this document.
  • The manager issues an order to carry out indexation.
  • Staff are also familiarized with it.
  • The staffing table, to which changes have been made, is approved.
  • An additional agreement is added with instructions on changes in wages.

There are two main methods of indexation; it can be either retrospective, that is, taking into account the rise in prices or inflation over the past period, or expected, that is, carried out in advance, taking into account the expected rise in prices.

Which payments are indexed and which are not?

It is necessary to index only the constant part of the salary - that is, the salary or tariff rate. But the obligation to index additional payments, such as food and financial assistance, is not imposed on the employer.

Various ones are often tied to wages and are paid as a percentage of it, that is, they change along with it, which does not require separate calculations.

However, those that are indicated in regulatory documents in the format of exact numbers will not be indexed. Therefore, it is advisable to carry out indexation separately for such payments, also including them in the document according to which it is carried out.

It is worth noting an important point: employers sometimes believe that if they increase employee wages, then indexation is not necessary. But this is not true, since salary increases and indexation are carried out in different ways and have different goals: the salary can be increased for one employee or part of it, for some it can be increased by 10%, for others by 30%, and so on. Here everything is solely determined by the will of the employer and his considerations regarding the need for this or that employee for the company. That is, the salary increase is intended to interest the employee in continuing to work for the company and benefit it. Indexation is needed to bring the wages of all employees in accordance with changes in consumer prices over the period and maintain their quality of life at the same level. Therefore, it provides for a simultaneous increase in wages by the same percentage for all employees of the enterprise.

How to calculate the indexation coefficient?

The calculation will depend on the parameter to which it is linked. Minimum indexation usually corresponds to the level of core inflation and is carried out either quarterly or semi-annually.

Let us give an example of wage indexation carried out at the end of the quarter for the second quarter of 2017. Inflation in April was 0.33%, in May 0.37%, and in June 0.61%. If the employee’s salary was 35,000 rubles, then for April it should be 100.33% of this amount, that is, 35,000 x 1.0033 = 35,115.5 rubles. For May 35,115.5 x 1.0037 = 35,245.43 rubles. For June 35,245.43 x 1.0061 = 35,460.42 rubles.

As a result, wages should rise by a little more than 460 rubles. It is worth noting that inflation in 2017 is low, and at the end of the year it will probably be in the range of 2–2.5%, but if calculated for some previous years, when it was 4–5 times higher, the figures would be significantly more impressive .

This is retrospective indexation, now we will give an example of what is expected: for example, the consumer price index from the Federal Statistics Service is used for calculation. Thus, the forecast for 2017 was 3.2%, which means that the expected indexation should have been carried out as follows: at the end of 2016, perform a recalculation and, if the employee’s salary was the same 35,000 rubles, raise it by 3.2%: 35 000 x 1.032 = 36,120 would be wages from the beginning of 2017.

An important nuance is taking into account indexing in . If it was carried out during the billing period, then all payments should be increased in accordance with the conversion factor. So, if wages are raised by 3.2% from the previous example, then the conversion factor will be the same (1.032). All payments made during the billing period must be adjusted to the indexed one. This means that if the calculation period included 6 months of 2016 and six months of 2017, then the coefficient should be applied to those relating to 2016.

If indexation takes place directly on , then only payments for days starting from the date of its implementation will be indexed.

For example, if an employee is on vacation from June 1 to June 30, and indexation took place on June 21, then for the period June 1-20 he will receive regular payments, and for June 21-30 - with the coefficient applied to them. Salary indexation can also be approximately calculated if you use an online calculator, of which you can now find many on the Internet.

From the Determination of the Constitutional Court dated June 17, 2010 No. 913-О-О:
“...wage indexation must be ensured for all persons working under an employment contract.”

Remember the phrase of the Black Queen from “Alice Through the Looking Glass”: “Well, here, you know, you have to run as fast as you can just to stay in the same place!”? It illustrates the situation with our salaries in conditions of inflation as accurately as possible: in order for salaries to remain at the same level and not depreciate, they must be regularly indexed.

However, in many companies, salary indexation is either not carried out at all, or is carried out so rarely that employees do not even remember the last time it happened. The question arises: are employers required to index wages and, if so, how often?

Indexation is mandatory, but it doesn’t make it any easier for workers

Salary indexation is one of the main state guarantees on employee remuneration Art. 130 Labor Code of the Russian Federation.

Two years ago, the Constitutional Court indicated that the employer is obliged to carry out indexation Determination of the Constitutional Court dated June 17, 2010 No. 913-О -О. This position is shared by Rostrud.

FROM AUTHENTIC SOURCES

Deputy Head of the Federal Service for Labor and Employment

“An employer’s evasion of wage indexation due to rising consumer prices for goods and services may be regarded as a violation of labor legislation, in particular Art. 134 Labor Code of the Russian Federation. And for violation of labor legislation, administrative liability may be applied to the employer.”

Indexing- 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 the cash incomes... of citizens in accordance with rising prices... Thus, purchasing power is maintained population and average real incomes of people.

Modern economic dictionary

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 Art. 134 Labor Code of the Russian Federation:

  • V 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 of various levels are indexed only according to a special signal - an order of either the Government of the Russian Federation Government Order No. 957-r dated May 31, 2011, or the executive body of a constituent entity of the Russian Federation see, for example, Resolution of the Governor of the Leningrad Region dated September 28, 2011 No. 90-pg or municipality a see, for example, Decree of the administration of the Skovorodinsky district of the Amur region dated May 18, 2011 No. 490;
  • V 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, which directly stipulate the obligation to index salaries see, for example, clause 3.8 of the Federal Industry Agreement on Construction and the Construction Materials Industry of the Russian Federation for 2011-2013. ; clause 3.2.4 of the Federal Industry Agreement on the Coal Industry of the Russian Federation for 2010-2012..

WE WARN THE MANAGER

If in the collective agreement or agreement there is a condition about indexing salaries, but it is not complied with, the labor inspectorate may fine you employer for 3000-5000 rubles. or issue a warning Art. 5.31, part 1 art. 23.12 Code of Administrative Offenses of the Russian Federation. Even citing the difficult financial situation of the company will not save you from liability.

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, and the workers will be left with nothing...

It also happens that organizations simply include in employment contracts a phrase like: “If there are financial opportunities, the Employee’s salary Maybe indexed in accordance with the orders (instructions) of the Employer.”

That is, it is prescribed right, and not the obligation of the employer to index the salaries of employees.

FROM AUTHENTIC SOURCES

YAKOVLEV Robert Andreevich

Chief Researcher at the Institute of Labor and Social Insurance of the Russian Ministry of Labor

“ Since currently the Labor Code does not stipulate the mechanism for indexing wages, in essence it turns out that the decision to carry out indexation is left to employers. And most of them are not eager to do this.

Our businesses, especially small and medium-sized ones, will definitely not part with their money voluntarily. Meanwhile, when inflation in European countries was as high as ours, it was the law that obliged businessmen to increase the salaries of their employees!”

In turn, Rostrud believes that if the indexation procedure is not provided for in the local regulations of the organization, then they need to be supplemented with relevant provisions and Letter of Rostrud dated April 19, 2010 No. 1073-6-1.

At the same time, we were able to find a court decision that 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 was not a normative act.

The question arises: can a labor inspector who has come to inspect a worker’s complaint fine an employer who has not established an indexation procedure and, as a result, has not indexed wages for a long time? This is what the Rostrud specialist explained to us.

FROM AUTHENTIC SOURCES

Head of the Legal Department of the Federal Service for Labor and Employment

“I believe that in this situation, the labor inspector has the right to issue an order to the employer obliging him to make appropriate changes (additions) to the local acts of the organization or to employment contracts within a certain period of time.

If the order is not fulfilled by the appointed date, then the head of the organization and the employing organization may be fined for failure to comply with the labor inspector’s order under Art. 5.27 Code of Administrative Offenses for violation of labor laws.”

It is possible that the labor inspectorate may also fine the company and its manager under Part 1 of Art. 19.5 of the Code of Administrative Offenses of the Russian Federation for failure to comply with an order within the prescribed period.

If the decision is made to index

Then the first thing you need to do is decide on the procedure for carrying it out and enshrine it in a local regulatory act, for example, in the regulation on employee remuneration. Let's see what should be written in it.

Which payments are indexed and which are not. For example, you can index salaries, but not index bonuses in a fixed amount. Also, no one bothers the employer to set a threshold amount within which the employees’ income will be indexed in full. Here's how to phrase it:

2.2. The following employee payments are subject to indexation:
- salary within an amount not exceeding 20,000 rubles;
- tariff rates;
- piecework and time rates.

2.3 The following are not subject to indexation:
- part of the salary exceeding 20,000 rubles;
- additional payments, allowances, bonuses established in a fixed amount;
- earnings retained by dismissed employees for the period of employment.

A Rostrud specialist shared his opinion with us on what principle to adhere to when indexing additional payments, allowances and bonuses.

FROM AUTHENTIC SOURCES

“I believe that the aforementioned payments, set as a percentage of the salary, do not need to be indexed, since after indexation they will be calculated from the already indexed salary. These same payments, established in a fixed amount, should ideally be indexed along with the tariff part of the salary (salary, tariff rate) so that there is no real reduction in the level of wages.

At the same time, employers not related to the public sector independently determine which components of wages to index.”

Rostrud

Indexing frequency. It can be done at least every month. But it is more convenient to do this less often: quarterly, once every six months or annually.

3.1. Employee income is indexed once every six months in accordance with the indexation coefficient.

How to calculate the indexation coefficient. The Labor Code links indexation to the increase in consumer prices for goods and services and Art. 134 Labor Code of the Russian Federation. But in the absence of a unified indexation procedure, the employer is free to choose his own benchmark for indexation. The Rostrud specialist also agrees with this.

FROM AUTHENTIC SOURCES

“Based on the provisions of Art. 134 of the Labor Code of the Russian Federation, the employer has the opportunity to provide in the relevant acts any procedure for indexing wages. Thus, the indexation value can be determined, in particular:

  • <или>based on the officially established consumer price index for Russia or the region based on the results of a certain period (for example, a quarter, half a year, a year);
  • <или>the amount of inflation recorded in the annual federal law on the federal budget or the budget of the corresponding region see, for example, paragraph 1 of Art. 1 of the Law of the Kamchatka Territory of November 14, 2011 No. 676; clause 1 art. 1 of the Law of the Kabardino-Balkarian Republic of December 30, 2011 No. 129-RZ; clause 1 art. 1 of the Law of the Astrakhan Region dated December 1, 2011 No. 97/2011-OZ;
  • <или>growth of the living wage of the working population (in Russia or in a specific region).”

Rostrud

Let's go over each of the listed indicators.

You will find all-Russian consumer price indices both by year and by month: Rosstat website→ Prices → Consumer prices Regional consumer price indices, both by year and by month, can be found on the websites of the territorial bodies of Rosstat. For example, indexes for Moscow can be found: Mosgorstat website→ Prices and tariffs → Operational information → Consumer prices

1. Consumer price index is officially established both for the country as a whole and for a specific region. It is published monthly by Rosstat and its territorial bodies for the constituent entities of the Russian Federation, respectively. Thus, in 2011, the consumer price index in Russia amounted to 106.1%.

2. Projected inflation rate in the Russian Federation, provided for, for example, by the Law on the Federal Budget for 2012 - no higher than 6% clause 1 art. 1 of the Law of November 30, 2011 No. 371-FZ.

3. The cost of living determined for the Russian Federation as a whole by the Government 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 subject of the Russian Federation pp. 1, 2 tbsp. 4 of the Law of October 24, 1997 No. 134-FZ.

You will find the cost of living in Russia and for a number of regions: section “Reference Information” of the ConsultantPlus system

So, for example, increase in the cost of living working-age population for the first quarter of 2012 compared to the fourth quarter of 2011 amounted to:

  • in Russia - 1.74% (RUB 6,827). Government Decree No. 613 dated June 19, 2012/ 6710 rub. Government Decree No. 247 dated March 28, 2012 x 100 – 100);
  • in Moscow - 1.39% (RUB 10,490) Decree of the Moscow Government dated 06/05/2012 No. 258-PP/ RUB 10,346 Decree of the Moscow Government dated March 20, 2012 No. 94-PP x 100 – 100).

We repeat: all of the above values ​​are optional. In principle, for wage indexation, the employer can choose any other benchmark that takes into account the rising cost of living.

Actually indexing order. Here's how you can formulate it, linking indexation, for example, to the consumer price growth index for Russia as a whole:

3.2. The value of the indexation coefficient is calculated based on official data on the growth of the consumer price index in Russia for the previous half of the year.

3.3. The value of the indexation coefficient is calculated by the chief accountant at the end of the first month of the current half-year by multiplying the monthly consumer price growth indices for Russia for the previous half-year. In this case, official data from the Federal State Statistics Service on the level of inflation in Russia for the previous six months are used. The resulting coefficient is applied from January 1 and July 1.

When carrying out each indexation, it is advisable to issue an order signed by the manager, in which you need to indicate the specific value of the indexation coefficient and the date from which it is applied. The order will be the basis for the accounting department to accrue wages to employees in an increased amount. Here is a sample of it.

LLC "Trading company "Azimut""

ORDER No. 23
on wage indexation

Moscow

In order to ensure an increase in the level of real wages in accordance with Articles 130, 134 of the Labor Code of the Russian Federation and the Regulations on the indexation of income of employees of Azimut Trading Company LLC

I ORDER:

2. Senior accountant M.I. Osechkina to calculate wages taking into account indexation from July 1, 2012.

Control over the implementation of this order is assigned to the chief accountant N.S. Maslova.

I have read the order:

Indexation = salary increase?

Is indexation of wages an increase and a change in the mandatory conditions of the employment contract on remuneration? Art. 57 Labor Code of the Russian Federation?

Rostrud believes that it is.

FROM AUTHENTIC SOURCES

“ Indexation of wages entails a change in its size or the size of its components (salary, bonuses, additional payments). The terms of remuneration (including the size of the tariff rate or salary (official salary)) of the employee are mandatory terms of the employment contract and must be included in it Art. 57 Labor Code of the Russian Federation.

Thus, changes in wages are reflected in employment contracts with employees and Art. 72 Labor Code of the Russian Federation” .

Rostrud

But so that the employer does not have to prepare a huge number of documents before each indexation, it is possible to stipulate in the employment contract with each employee that the employee’s salary is a salary taking into account indexation. And also indicate that salary indexation is carried out in accordance with the Regulations on remuneration of employees of the organization.

4.3. The employee has a salary of 20,000 rubles, which is indexed once every six months in accordance with the Regulations on remuneration of Azimut Trading Company LLC dated 01.06.2005 No. 23-/06-11, with which the Employee was familiarized with before signing this labor contract agreement.

True, there is another point of view, according to which indexation of wages due to inflation is not an increase, because the real content of wages remains unchanged. In addition, the employer’s obligation to index employees’ wages in connection with rising consumer prices is expressly provided for in the Labor Code of the Russian Federation. However, if you agree with this approach, then the indexation of wages, in particular salaries, cannot be taken into account when calculating average earnings for paying for business trips, vacation pay, etc. clause 16 of the Regulations, approved. Government Decree No. 922 dated December 24, 2007

It is with regret that we have to state that currently the obligation to index is of a declarative nature. However, in our opinion, periodic salary indexation is beneficial to the employer, if only because it significantly increases the motivation and loyalty of employees. After all, by indexing wages, the employer demonstrates to employees that he cares about them.

Consumer prices for goods and services are constantly rising. Therefore, the provisions of the labor code oblige employers to index workers' wages.

What is wage indexation, is indexation of wages for public sector employees mandatory in 2016, how to establish wage indexation in the wage regulations?

What is wage indexation?

Wage indexation in 2016 is a guarantee established by Article 134 of the Labor Code of increasing the level of real wages. In other words, this is a procedure for increasing employee pay. This is an increase in workers' wages in accordance with the level of growth in consumer prices for goods and services. The consumer price index is calculated every month according to the methodology determined by the State Statistics Committee (Resolution of the State Statistics Committee of Russia No. 23). However, it is worth remembering that the Labor Code contains the wording “in connection with the increase in consumer prices for goods and services”, but does not establish the amount of indexation. Accordingly, there is no need to increase employee salaries every month in accordance with the increase in consumer prices.

Wage indexation: right or obligation?

Wage indexation in 2016 is a guarantee that the employer must provide to their employees, but the courts still do not have a consensus on whether it is necessary to index wages.

So, for example, the appeal ruling of the Moscow City Court dated December 12, 2013 No. 11-36261/13 states that since the indexation of wages is established by local regulations, the adoption of which is not an obligation, but the right of the employer, therefore, it is not necessary to index wages. However, in such matters it is better to rely on the opinion of higher courts.

Thus, the Constitutional Court of the Russian Federation in its rulings dated July 17, 2014 No. 1707-O and November 19, 2015 No. 2618-O indicated that all employers, regardless of the field of activity (budgetary or non-budgetary) obliged carry out wage indexation, since this is a state guarantee for the remuneration of employees, and therefore must be unconditionally ensured.

At the same time, Rostrud, in a letter dated April 19, 2010 No. 1073-6-1, notes that the employer is obliged to carry out indexation, and if it is not provided for by the relevant acts, then it is necessary to develop them.

Indexation of wages for public sector employees in 2016

The Labor Code (Article 134) distinguishes between “state bodies, local governments, state and municipal institutions” and “other employers”. If the former, in matters of indexation, should be guided by regulatory legal acts containing labor law norms, then the latter should be guided by collective agreements, agreements and local regulations. For public sector workers, indexation issues have traditionally been resolved by the Government of the Russian Federation (for example, order No. 1641-r dated September 27, 2011), but there have also been proposals to abolish wage indexation for them.

Wage indexation in commercial organizations

Thus, for commercial organizations, wage indexation in 2016 is this is an absolute obligation.

In order to carry it out, it is necessary, first of all, to establish this procedure in local regulations (for example, the Regulations on remuneration or a separate regulation on wage indexation), familiarize employees with the changes, and then issue a corresponding order from the manager at each indexation, make changes to the staffing table (it is necessary to familiarize employees with the changes against signature), as well as employment contracts with employees (in accordance with the established procedure).

Please note: a unified formula for calculating the amount of wage indexation has not been developed, despite numerous bills. The employer has the right to determine the amount of indexation himself, taking as a basis, for example, the amount of inflation from the federal budget or statistical data from Rosstat.

Wage indexation is the responsibility of every employer. If you ignore this legal requirement, you may face serious fines. Find out how often it should be carried out, how to calculate and prepare documents.

Read in the article:

Salary indexation in 2020

Wage indexation is provided for in Article 134 of the Labor Code. However, only personnel with whom employment contracts have been drawn up can count on increased wages. For those employees who receive remuneration under civil law agreements, salary indexation is not provided.

Download documents from the article

Salary indexation is calculated depending on how and from what source the organization is financed. Budgetary enterprises index the earnings of their employees based on labor legislation and other regulatory documents. But private companies are guided by internal rules, which are described in local acts and collective agreements.

Despite the fact that the legislator tried to protect the rights of employees and stipulate regular increases in earnings in connection with the inflation processes occurring in the country, the mechanism for implementing these provisions has not been fully worked out. The laws say nothing about salary indexation periods and the calculation procedure, which gives unscrupulous management the opportunity to freely interpret legal norms. However, the emerging judicial practice in this area makes it possible to determine the basic principles that fill the gaps in the implementation mechanism.

The way companies now consider advance payments has been declared illegal by the Ministry of Labor. Do you think the HR department doesn't care about this? You are wrong. Your department must prepare the draft Regulations on Remuneration or make amendments thereto. From the article in the magazine "Human Resources Directory" you will learn how to now calculate an advance, why it is dangerous to do it in the old way, what to check and adjust in this regard in the documents.

Is wage indexation an obligation or a right of the employer?

All employers are required to index wages taking into account rising prices. This follows from Article 134 of the Labor Code of the Russian Federation and. The right of employees to indexation does not depend on whether the employer has included the relevant provisions in the company’s local acts, collective agreement, agreement or not. Articles 353 and 355 of the Labor Code of the Russian Federation say that an employee has the right to appeal to the State Labor Inspectorate if his rights are violated. Therefore, if management refuses to review wages in accordance with the economic situation, the employee can write about this to the state labor inspectorate or appeal against management’s inaction in court.

If the State Tax Inspectorate or the prosecutor's office come with an inspection and find that the employer does not index workers' wages, the company will be fined 50 thousand rubles, the manager - 5 thousand rubles. (Part 1 of Article 5.27 of the Administrative Code). If the company does not provide for a procedure for indexing wages, they will issue an order to make appropriate changes to local regulations. Failure to comply with this requirement will result in a fine of another 200 thousand rubles. (Part 24 of Article 19.5 of the Administrative Code).

Moreover, the fact that the employer does not index the salary is regarded by the inspectors as an incomplete payment of wages ( Rostrud classifies this violation as a high risk category - 7 points. If the company is caught with this violation, they will assign a high risk category, which means they will be inspected more often.

Salary indexation coefficient in 2019 and 2020

What coefficient should you choose to index employee salaries? The Labor Code links indexation to rising consumer prices for goods and services. The consumer price index is officially established both for the country as a whole and for a specific region. It is published monthly by Rosstat and its territorial bodies for the constituent entities of the Russian Federation, respectively.

Consumer price indices in 2019
Period In % to December of the previous year
(cumulative total from the beginning of the year)		 In % to the previous month In % to the corresponding month of the previous year
September 2019 102,3 99,8 104,0
August 2019 102,4 99,8 104,3
July 2019 102,7 100,2 104,6
June 2019 102,5 100,0 104,7
May 2019 102,4 100,3 105,1
April 2019 102,1 100,3 105,2
March 2019 101,8 100,3 105,3
February 2019 101,5 100,4 105,2
January 2019 101,0 - 105,0

However, it is not necessary to take the consumer price index as a salary indexation coefficient. Commercial companies can use other indicators of rising costs of living:

  • the projected inflation rate is 4.3% in 2019, and the budget for 2020 includes a level of 3%;
  • the cost of living;
  • another indicator that takes into account the rising cost of living.

How to prepare documents for salary indexation

In order to index employee wages, you will need the following documents:

Make changes or issue a special local act with indexing conditions.

2. Order on salary indexation.

Indicate from what date and by what factor you are increasing salaries.

3. Additional agreements.

Write down the indexation clause in employment contracts and refer to the local act.

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The Regulations should contain the following information:

  • payments that need to be increased;
  • frequency;
  • calculation order;
  • How will wages be calculated after recalculation?

The amounts that need to be indexed are, as a rule, salaries or tariff rates established by the enterprise. Additional payments, which are calculated as a percentage of basic earnings, are not indexed.

The frequency of salary indexation is left to the discretion of the employer. Recalculation can be carried out once a month, quarter, six months, year or other periods. But the established practice is to increase earnings at least once a year.

Example

From July 1, 2019, the company indexes salaries of all employees by the amount of inflation, that is, by 4.3%. Ivanova has an official salary of 25 thousand rubles. The employer increased her salary by 1,075 rubles. = 25 thousand rubles. x 4.3%.

Order for wage indexation in 2020

To recalculate payments, you need to draw up an order. The legislator has not provided a uniform form for such a document, so it is drawn up arbitrarily, with reference to a normative act. Such an order usually displays the following information:

  • the amount of salary indexation;
  • basis for calculating the coefficient;
  • employee who is made responsible for recalculations;
  • details (date, number);
  • notes on familiarization with the order of the employees mentioned in it.

The recalculation automatically changes the terms of employment agreements with people. Therefore, it is necessary to conclude additional agreements with employees to employment contracts. They indicate information about the amount of new earnings and the date from which the increased payment will be paid. It is worth considering that such additional agreements will have to be signed every time, because the size of the salary (or tariff rate) will change each time.

It will also be necessary to make changes to the staffing table, because this document reflects the salaries of employees. Since wage indexation affects all employees, it is advisable to adopt the staffing table in a new form and set a date from which it will come into effect.

The economic crisis has a negative impact on the well-being of the population. Wage indexation in 2019 will make it possible to at least slightly increase the real level of income of people working in the public sector. We are talking about municipal and government employees, whose managers, in accordance with the Labor Code of the Russian Federation, are required to carry out indexation. But is it necessary to index wages in 2019 in commercial organizations? Or should only budgetary organizations increase wages? Is indexation a right or an obligation of an employer? What is the latest news on this indexation for public sector employees? Let's figure it out.

Delicate duty of the employer

The Labor Code contains norms that define possible and mandatory ways to improve people's living standards. Indexation of the minimum wage is one way.

If an employee works in a company that is not financed by the state budget, then it is still necessary to carry out indexation, but on the basis of the following documents:

  • internal company rules;
  • collective agreement;
  • agreements.

Remember that ensuring indexation is the direct responsibility of the employer! Moreover, it should immediately affect all employees of the enterprise. Regulatory provisions on wage indexation provide for its mandatory implementation in organizations not only of the budgetary, but also of the extra-budgetary sphere. The difference lies only in some procedural points.

Private firms and individual entrepreneurs themselves determine how to carry out indexation. This gives business owners the opportunity to take into account the interests of not only their subordinates, but also their own benefits.

For whom is it required?

If they ignore the need for indexation, employers may face unpleasant consequences if labor inspectors come. By the way, further decisions of controllers may be different:

  1. will be required to enter information about the procedure for indexing wages at the enterprise into a current internal document or to adopt a new act on this in the organization;
  2. the responsible persons will be held administratively liable in the form of a fine (Article 5.27 of the Code of Administrative Offenses of the Russian Federation).

Note that the second point is controversial. And in case of disagreement with the fine, the employer can go to court. Current judicial practice shows that decisions in such a case can be made both in favor of the employer who applied and in favor of the inspectors.

If an organization has a provision on wage indexation, but the employer does not comply with it, then during an inspection the company may most likely be fined.

As noted by the Constitutional Court of the Russian Federation in Determination No. 2618-O dated November 19, 2015, the wages of all persons working under an employment contract must be indexed.

Wage indexation is a way to protect earnings from inflation due to rising consumer prices.

The amount of wage indexation in 2019 may correspond to:

  • the official consumer price index for the country or in a particular region (based on the results of a certain period, for example a quarter, half a year, year);
  • the amount of inflation established in the annual federal law or the law of the region in which the organization operates;
  • growth of the living wage of the working population.