Additional agreement on changing the employee’s salary


Key points when changing salary

Salary is the unchangeable part of the salary. Usually for different categories of employees it is established by a separate order of the director of the company, fixed in the staffing table and then remains unchanged for a certain period of time.

However, due to any circumstances, the management of the enterprise may decide to increase or decrease the salary - the law does not limit the employer’s right in any way.

The only condition that must be met is to notify those employees who are affected by the salary change in advance and in writing.

If the employee agrees with the proposed salary, it is necessary to conclude an additional agreement with him.

The salary can be changed as often as you like, the main thing is that it is not lower than the minimum wage established by law. A change in salary can affect both a group of employees and a particularly distinguished employee, while the size of the change is also strictly individual.

Salary reduction

The need to reduce employee salaries can arise in almost any organization. The reasons for this may be different. Most often, a downward revision of salaries may be required if:

  • unstable financial situation;
  • the need to change the technological process.

But regardless of which reason it is necessary to reduce employees’ wages, it is mandatory to sign an additional agreement to the employment contract.

The exception is one of the grounds prescribed in Art. 74 Labor Code of the Russian Federation:

  • change or introduction of new technologies used in production;
  • change or emergence of new technology;
  • changing the structure of the enterprise (including management);
  • improvement of workplaces;
  • change in workload between departments.

In these cases, it is not necessary to obtain the employee’s consent to reduce the permanent salary.

In addition, a reduction in salary is considered a change in the terms of the employment contract, which means that the employer must notify the employee in advance in writing two months before the event occurs.

If, after notifying the employee of the salary reduction, he refuses to continue to perform his duties under the new conditions, then he can be fired. If an employee expresses a desire to continue working on the terms proposed by the employer, it is necessary to conclude an additional agreement to the employment contract.

Please note that an employer cannot simply reduce an employee's earnings. If there is a reduction in salary, then not only working hours, but also the employee’s work responsibilities must be proportionally reduced.

Let us add that any agreement that acts as an addition to the employment contract and contains a condition for reducing wages, while not changing the working conditions, is obviously unlawful. If, in the event of an inspection of an organization by a labor inspectorate, it is revealed that the employee’s working conditions have not changed and the salary has been reduced, then this will be classified as a gross violation of the employee’s rights and the requirements of the Labor Code of the Russian Federation.

In the supplement to the employment contract, it is necessary to indicate the date from which changes to the employment contract come into force.

The procedure for changing salary

In most cases, a proposal to increase the salary of a particular employee of an enterprise is made by his immediate superior, who writes a memo to the director of the company indicating the reasons for such a recommendation.

Further, on the basis of this note, the manager issues an order to change the salary, which reflects all the conditions for increasing or decreasing the salary, indicates the employee who is affected by this change, and also appoints the persons responsible for the execution of this order (as a rule, this is a personnel officer and an accountant).

Then adjustments are made to the current staffing table and an additional agreement is concluded with the employee.

For what purpose is an additional agreement to change the salary drawn up?

An employment contract is a document that regulates the working relationship between an employer and an employee.
It specifies the conditions under which the employee begins work and the obligations regarding the provision of a workplace and payment for work by the employer. The requirement to indicate in the contract the size of the employee’s salary is mandatory (Article 57 of the Labor Code of the Russian Federation). If its size changes (up or down), the change in salary in the employment contract must be accompanied by the signing of a separate document indicating the current amount of remuneration for labor. For this purpose, an additional agreement to the employment contract on changing the salary for 2019 is being drawn up. We provide a sample of what the additional agreement to the employment contract on changing the salary looks like below. Most often, we are talking about salary as a constant part of earnings. A documented and signed addition to the employment contract regarding the change in salary means that the amendment occurred by agreement of the parties, that is, with the consent of the employer and employee.

Main nuances when drawing up an agreement

The agreement form does not have a unified form and, like an employment contract, can be formed in any form or according to a template developed for this type of paper within the company and approved in its accounting policies. However, at the same time, in form and structure it must comply with certain standards of office work, and in text and content - with the rules of the Russian language.

In addition, there is a number of information that must be indicated in the document:

  • The form must include the name of the employing company, position, full name of the employee, number and date of the employment contract to which this additional agreement relates.
  • Further in the text of the document, you should indicate the fact of reaching an agreement, the reasons for changing the salary (if desired or as necessary), and also reflect point by point all the changed conditions (here you must enter the new salary amount).
  • You should also be sure to write down the date on which these changes come into force, and also note that this agreement serves as part of the employment contract.

Is it necessary to draw up an additional agreement and why?

Information on the amount of remuneration in an employment contract is one of the most important terms of the agreement, without which the contract may be considered inappropriately executed.

Important! Simply issuing an order to change employee benefits in a company is not enough. First, you need to reflect changes to the employment contract regarding salary changes in an additional agreement or draw up a new contract with the employee.

What exactly needs to be done is decided by the company administration in consultation with the employee. If you only need to change the salary, and all other conditions remain the same, it is recommended to draw up an additional agreement to the contract previously concluded with the employee.

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When changes involve making significant adjustments to the old contract, it would be best to renew the new employment contract.

Only after this can management issue an order to increase wages, and the accountant will be able to accrue remuneration based on the new wages for employees.

What to pay attention to when registering

The law does not impose any special requirements on the content of the document or its execution, so an additional agreement can be drawn up on an ordinary A4 sheet or on company letterhead. It is permissible to write the agreement either by hand or print it on a computer (the second option, of course, is much more convenient).

The main condition is that the document bear “live” signatures of both parties (the use of facsimile autographs, i.e. printed in any way, is completely unacceptable).

It is necessary to certify the form with a seal or stamp only if this norm is established in the internal regulations of the company (since 2016, legal entities may not use stamps when endorsing their documentation).

The agreement is always printed in two copies , one of which is handed over to the employee, the second remains with the employer.

How to draw up an additional agreement to an employment contract on salary changes

When drawing up an additional agreement, three parts are conventionally distinguished: introduction, text part and conclusion. In this case, the text part can include not only information that the employee’s salary will change from a certain date, but also any other information necessary for the change. This will make it possible not to draw up several additional agreements for the same employment contract with different changes.

The introductory part briefly, but at the same time succinctly, sets out all the necessary conditions under which the additional agreement is signed. In particular, it is in this part of the document that it is necessary to indicate the legal grounds upon which the contract is changed.

Mandatory for use in the introductory part are:

  1. Place and date of execution of the agreement;
  2. Full details of the parties - full name. employee and manager, or entrepreneur;
  3. Their exact positions.

The additional agreement always indicates exactly the same number of parties as there are in the main agreement. If the quantity differs, then the additional agreement can be declared invalid and the changes made to it illegal.

Also in this section it is necessary to indicate the date from which the additional agreement comes into force. When the salary changes, it can be either the 1st day of the current month or the next. This item actually determines from what month the employee will actually have a new salary.

At the end of the introductory part, you also need to indicate information about the order or other document that serves as the basis for the changes, as well as information on the concluded employment agreement.

The next part is the main text of the agreement. The conditions that need to be changed, supplemented or deleted are indicated here. When describing the conditions, it is necessary to describe in as much detail as possible where the data to be replaced is located, and what exactly it needs to be replaced with.

In particular, reference must be made to the number of the item in which the information being replaced is located. When specifying numerical expressions, only Arabic characters must be used.

If the salary is changed, it is necessary to indicate the number of the item being changed, as well as its new content.

The final part contains the details of each party to the agreement:

  • For an organization, its name, TIN, KPP, OGRN codes, and location address are indicated;
  • For the employee, his full name, information about the identity document, and address of residence are entered.

Attention! In addition to the required signatures, a seal is placed on the agreement if it is used by the organization. Also on the form there should be a reference to the fact that there is a second copy of the document, and that the employee received it in person.

Additional agreement on salary increases

Conditions relating to employee remuneration, according to Art. 57 of the Labor Code of the Russian Federation (hereinafter referred to as the Labor Code of the Russian Federation) are necessarily fixed in the employment contract (hereinafter referred to as the TD). If any of its mandatory conditions change, an additional agreement to the TD must be drawn up, containing a new version of its relevant provisions (Article 72 of the Labor Code of the Russian Federation).

An increase in the level of wages, although it does not infringe on the interests of workers (Articles 8, 135 of the Labor Code of the Russian Federation), nevertheless must be formalized by an additional agreement, since the Labor Code of the Russian Federation does not contain exceptions in this regard.

The general scheme of actions of the employer is as follows:

  • publication of an administrative document on changes to the staffing table;
  • notifying an employee about a change in the terms of the TD, in this case about an increase in salary, mandatory bonus part, tariff rate, etc. (for information about the procedure for informing an employee about a change in such conditions, read our article at the link Notification of a change in conditions employment contract);
  • preparation and signing of an additional agreement with the employee on an increase in salary (with the employee’s consent);
  • publication of an administrative document on changes in salaries for specific employees (who signed the additional agreement mentioned above).
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