Northern allowance in the Far North 2021-2022

Supplement for citizens under 30 years of age

Until 2005, there was an additional benefit for young professionals. This category included citizens who came to work in the North before reaching the age of 30, while having a specialized higher or secondary education.

After 2005, this benefit was abolished, but an accelerated procedure for calculating bonuses for young specialists under 30 years of age was developed and approved. The allowance is calculated as follows:

• those working in areas belonging to the 1st and 2nd groups of climatic conditions begin their working career with a 20% bonus to their salary. Then it increases every six months by another 20% until it becomes 80% (60%) of the salary. The premium will reach its maximum of 100% and 80%, respectively, only after a year;
• those working in the 3rd and 4th groups of climatic conditions begin their working career with a 10% increase in salary. Every six months it increases by another 10% until it reaches a maximum of 50% and 30%, respectively.

The Letter of the Ministry of Health and Social Development of the Russian Federation dated August 17, 2005 No. 697-13 states that there are additional benefits for citizens who were born and lived in the Far North for at least 5 years as of December 31, 2004. Such citizens who get a job in the regions of the Far North or in regions that have a similar status have the right to receive a percentage increase in wages in full from the first day of work in these regions (including when concluding an employment contract after 12/31/2004).

As for young specialists who have not yet turned 30 years old, but who began their working career in the north after December 31, 2004 and have lived in the specified areas and localities for at least one year, they have the right to accrue the northern allowance on an accelerated basis in in accordance with paragraphs. “e” clause 1 of the Resolution of the Council of Ministers of the RSFSR dated October 22, 1998 No. 458 “On the streamlining of compensation to citizens living in the Northern regions.”

Conditions for the emergence of the right to the northern allowance

The right to receive a northern bonus for workers directly depends on the duration of their work in difficult natural conditions (Article 317 of the Labor Code of the Russian Federation).

The main documents regulating the procedure for establishing this guarantee are the instructions approved by orders of the Ministry of Labor of the RSFSR dated November 22, 1990 No. 2 (hereinafter referred to as Instruction No. 2) and No. 3 (hereinafter referred to as Instruction No. 3), resolutions of the Central Committee of the CPSU, the Council of Ministers of the USSR and the All-Union Central Council of Trade Unions dated 04/06/1972 No. 255 and dated 01/09/1986 No. 53.

According to these documents, the employee’s northern bonus depends on:

• from the region where the citizen lives and works;
• age of the worker;
• the length of his work experience in the regions of the North;
• the period of his residence in difficult climatic conditions.

The maximum amount of the allowance established by law depends on the region where the work is performed:

• regions of the Far North – up to 100% ;
• other regions of the Far North – up to 80% ;
• areas equated to the Far North - up to 50% ;
• other regions of southern Siberia and the Far East - up to 30% .

IMPORTANT!

In order to determine the required northern charges, the actual place of performance of labor functions is taken into account, and not the territory where the employer is located.

The length of service taken into account when calculating bonuses includes both the time spent performing official duties and some other periods. Namely:

• advanced training with a break from work for up to 6 months;
• periods of study in educational institutions;
• time of military service, including alternative;
• periods of maternity and childcare leave.

entire working time is taken into account , regardless of the presence and duration of breaks in his work activity, as well as the reasons for dismissal. Moreover, if an employee is sent on a business trip to a region where there are no allowances, this period is not removed from the length of service for their accrual.

IMPORTANT!

does not take into account the entrepreneurial activity of a citizen (IP) and his employment under civil contracts, as well as periods of correctional labor and stay in places of detention.

During a business trip to the North, citizens living and working in areas without difficult climatic conditions are not awarded .

Supplement after 30 years

Citizens who are already 30 years old and who work in the north receive a bonus according to the general rules:

• for regions belonging to the 1st group - in the first 6 months of work, 10% of earnings are accrued, for each subsequent six months another 10% is accrued. And so on until it reaches its maximum - 100%;
• for regions belonging to the 2nd group - in the first 6 months of work, 10% of earnings are accrued, for each subsequent six months another 10% is accrued. And so on until it reaches its maximum - 80%;
• for regions belonging to the 3rd group - in the first 6 months of work, 10% of earnings are accrued, for each subsequent year of work another 10% is accrued. And so on until it reaches its maximum - 50%;
• for regions belonging to the 4th group - in the first 6 months of work, 10% of earnings are accrued, for each subsequent 2 years of work another 10% is accrued. And so on until it reaches its maximum - 30%.

Allowance for military personnel

But not only the civilian population works in the Far North. There are many military units that are located in places with such a difficult climate. How is the allowance calculated for military personnel?

Military personnel do not receive wages, but monetary allowances. The allowance is awarded to them in the same way as to the civilian population:

• for monetary allowance without taking into account the regional coefficient;
• depending on the region of service;
• depending on length of service.

If a serviceman is not yet 30 years old, then the rules for accelerated calculation of bonuses also apply to him.

Relocation allowance

The amount of the bonus depends on the length of service in such climate conditions. The amount of experience is taken into account cumulatively. Therefore, when an employee moves to another area, it is worth following this rule.

For example, a citizen worked in an area where the premium percentage is 80%, and then he moved to another area with less harsh climatic conditions. Now his bonus is a maximum of 30% of wages. But in terms of experience, he already has 80%! Therefore, he can count on the maximum salary increase - 100%.

Another situation. The citizen worked in the Far North for 5 years. Then he moved to a warmer climate and stopped giving raises. Then he returned to the North again. His northern experience has already been 5 years, and it is based on this experience that the accounting department will give him a bonus upon re-employment.

The essence of the allowance for work in the North

Citizens carrying out labor activities in the territories of the Far North of the Russian Federation (KS) and equivalent to them, in cases established by law, receive a salary:

• increased by a certain percentage in the form of a surcharge;
• multiplied by the regional coefficient (Article 315 of the Labor Code of the Russian Federation).

The bonus and coefficient are applied when calculating wages based on the fact that the person actually works in the North: the location of his employer (company head office) does not matter.

The territories of Russia related to the Far North and equated to it are determined mainly by Resolution of the USSR Council of Ministers dated January 3, 1983 No. 12. You will find the full list here.

ATTENTION! From 2022, the list of northern regions will be changed. See this post for details.

The amount of the “northern” premium depends on:

• length of work experience in the North;
• the length of time a person has lived in the North;
• employee age;
• places where work is performed - at the compressor station itself or in regions equivalent to it. It also matters in which specific northern regions of the Russian Federation labor activity is carried out.

Let's study what the value of the premium in question could be.

How is the northern allowance calculated?

In order to correctly understand how the northern allowance is calculated, you need to give several examples.

Example 1. For example, citizen R. is already over 30 years old, he has been working for 8 months in the Republic of Sakha. What amount will he receive in person if his salary is 37,000 rubles. Calculation: after 8 months he will receive a 20% increase in salary, and in hand 37,000 + (37,000 * 20%) = 44,400 rubles

Example 2. Citizen R. is a young specialist, he has not yet turned 30 years old. He has been working in the Komi Republic for 1 year and 6 months. His salary is 40,000 rubles. How much money will he receive? Calculation: since the employee is not yet 30 years old, accrual occurs according to an accelerated scheme. Komi is the 3rd climate zone, the maximum here is 50% of the salary. After 1.5 years he will have a 30% increase in salary. That is, in hand 40,000 + (40,000 * 30%) = 52,000 rubles.

If an employee receives a bonus, then it must be taken into account in the salary, and a bonus percentage must be added to it.

Is it necessary to include it in an employment contract?

Since an allowance (of any nature), according to the Labor Code, is considered an integral part of wages, it will need to be reflected in the employment contract. This applies to both collective agreements and individual employee agreements.

But there are certain nuances here. The specific amount of the bonus may not be reflected in the employment contract. You just need to provide a link to one of the company’s local regulations that discusses this point in detail. This may be a signed and entered into force Regulation on Remuneration.

Northern allowances and regional coefficient

The regional coefficient is also a measure of additional support for citizens who work in the Far North or in an area that has a similar status. This measure was introduced in order to further support citizens due to the fact that the cost of food and household services in the north is slightly higher than in the central region.

The regional coefficient is calculated depending on the region of residence and employment, and is also fully regulated by labor legislation.

The maximum coefficient is 2. It is set for:

• islands and seas of the Arctic Ocean, except for the islands of the White Sea;
• the Republic of Sakha, where enterprises and construction sites of the diamond mining industry are located, at the Aikhal and Udachnaya deposits, the Deputatsky and Kular mines;
• some districts of the Sakhalin region;
• Aleutsky district of Kamchatka region;
• Chukotka Autonomous Okrug.

In other regions, the regional coefficient is slightly lower.

The regional coefficient is calculated for the following payments:

• wage;
• directly related to wages. For example, additional payments for length of service;
• allowances that are related to wages. We are talking about tariff allowances, as well as allowances for an academic degree, skill and class of profession;
• compensation for harmful and dangerous working conditions;
• “thirteenth salary”;
• seasonal work and temporary employment relationships;
• on certificates of incapacity for work;
• persons who work part-time or part-time;
• Minimum wage.

The regional coefficient is not calculated for:

• vacation pay;
• remunerations and payments that are temporary or one-time in nature;
• northern allowances.

The effect of the district coefficient in 2016-2018 applies to pensions and benefits only at the time when a person lives in a given region. If you change your place of residence to a more favorable one, the premium will be reduced (or completely canceled).

What is the premium calculated for?

A percentage bonus must be accrued on all payments that have the nature of a salary, including payments for length of service (clarification of the Ministry of Labor of the Russian Federation dated September 11, 1995 No. 3). These include wages (including for night and overtime work, downtime, etc.) and bonuses from the salary fund.

Supplements are not awarded:

• on average earnings and payments calculated on its basis, since when calculating it, the amount of the bonus is already taken into account (clause 2 of the regulation, approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922);
• regional coefficient (subparagraph “e” of paragraph 1 of the resolution of the Council of Ministers of the RSFSR dated October 22, 1990 No. 458);
• one-time payments made not from the salary fund and not provided for by the remuneration system (for example, dedicated to memorable dates or holidays), since they are not in the nature of wages, are not related to working conditions and working hours, and are not recognized as reducing the income tax base (Part 1 of Article 255 of the Tax Code of the Russian Federation);
• material assistance (letter of the Ministry of Labor of Russia dated July 22, 1999 No. 716-7);
• field allowance (part 1 of article 168 of the Labor Code of the Russian Federation, it is classified as compensation);
• remuneration for rationalization proposals and inventions, if they are not provided for in the employment contract (letter of the Ministry of Health and Social Development of the Russian Federation dated March 12, 2010 No. 559-19).

The accrual of bonuses begins when the employee becomes entitled to them, after which payments must be made monthly.

Will northern surcharges be abolished in the future?

Several years ago, the Government proposed to completely abolish or change the procedure for applying and calculating northern allowances and regional coefficients. But since this is an additional measure designed to compensate for difficult climatic conditions, such an initiative did not find support.

However, there are prerequisites for changing the accrual rules. These include:

• all regulations governing the procedure for applying and calculating allowances, developed and adopted back in Soviet times;
• for commercial enterprises this is an additional burden on accounting.

The unrest about the abolition of premiums and the coefficient is caused by the fact that the Government is going to pass a bill on the introduction of priority development areas. But in this law there is not a word about bonuses for northerners!

There is a possibility that amendments will be adopted to the Labor Code of the Russian Federation, which will allow replacing the amount and coefficient with monetary compensation, but only with the written consent of the employee.

Table of regional coefficients and northern surcharges

Allowances in 2015-2016

Regional coefficient in 2015-2016