Fines for wages below the minimum wage
Violation is punishable by a fine under clause 6 of Art. 5.27 Code of Administrative Offenses of the Russian Federation:
- the head of the legal entity will be punished in the amount of 10 to 20 thousand rubles;
- entrepreneur - from 1 to 5 thousand rubles;
- organization - from 30 to 50 thousand rubles.
In case of repeated violation, the punishment will be more significant:
- the head of the legal entity will be punished in the amount of 20 to 30 thousand rubles or disqualified for a period of 1 to 3 years;
- entrepreneur - from 10 to 30 thousand rubles;
- organization - from 50 to 100 thousand rubles.
How is the regional minimum wage coefficient calculated?
The Ministry of Labor sets the minimum wage and regional coefficient for work in the Far North. The wages of workers who work in an unfavorable climate should not be less than the minimum wage. After it is determined, bonuses for length of service and the regional coefficient are added to the salary. This provision follows from the definition of the RF Armed Forces of 2012 No. 7212-b, as well as from other documents issued by the RF Armed Forces.
Example: An employee of an enterprise receives a salary. Its size is 20,000 rubles. The amount of bonuses and incentives fixed in the employment agreement is 5,000 rubles. The coefficient that applies in the area where he works is 20%. If the employee has worked a calendar month in full, the calculation is as follows: salary 20,000 + bonuses 5,000. Amount 25,000 X coefficient 20%, it turns out 500. This is the amount that in monetary terms is the size of the coefficient for working conditions in unfavorable conditions. terrain. The salary and bonuses are added to the amount, resulting in 30,000 rubles. From 30,000 we subtract 13% income tax and advance payment. Thus, it turns out that it is not the minimum wage that increases by the regional coefficient, but the employee’s salary.
How to apply for a salary increase at an enterprise
A salary increase to the minimum wage is documented by the following documents:
- An order from the head of the organization indicating the list of positions for which salaries are increased.
- Additional agreements to employment contracts with employees.
- Order from the manager to make changes to the organization’s staffing table.
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Exclusion from the minimum wage of compensation, incentives and other payments
According to Art. 133 of the Labor Code of the Russian Federation (hereinafter referred to as the Labor Code of the Russian Federation), the monthly salary of an employee who has fully worked the standard working hours during this period and fulfilled labor standards (labor duties) cannot be lower than the minimum wage (hereinafter referred to as the minimum wage). In accordance with Art. 315–317 of the Labor Code of the Russian Federation, wages in the regions of the Far North and equivalent areas are carried out using regional coefficients and percentage increases in wages.
This was confirmed by the Constitutional Court of the Russian Federation in Resolution No. 38-P dated December 7, 2017, by which the provisions of Art. 129, hh. 1 and 3 tbsp. 133, hh. 1–4, 11 tbsp. 133.1 of the Labor Code of the Russian Federation are recognized as not contradicting the Constitution of the Russian Federation, since in their constitutional and legal meaning they do not imply the inclusion in the minimum wage of regional coefficients (coefficients) and percentage bonuses accrued in connection with work in areas with special climatic conditions.
Taking into account the calculation of regional coefficients and percentage bonuses to wages, the minimum wage level from January 1, 2019 ranges from 11,280 rubles in the central and southern regions of Russia to 33,840 rubles in the Chukotka Autonomous Okrug (regional coefficient - 2 and percentage bonus to wages fee - 100%).
Based on the provisions of Art. 135 of the Labor Code of the Russian Federation, wage systems include:
• sizes of tariff rates, salaries (official salaries);
• additional payments and allowances of a compensatory nature, including for work in conditions deviating from normal;
• systems of additional payments and bonuses of an incentive nature;
• bonus systems.
At the same time, the rules for determining an employee’s salary and the remuneration system, including the salary structure, are determined by the organization independently.
Thus, labor legislation allows the establishment of salaries (official salaries), tariff rates as components of wages in an amount less than the minimum wage, provided that the monthly wage, which includes all elements, will not be less than the minimum wage established by federal law [1].
Resolution No. 17-P dated April 11, 2019 “In the case of verifying the constitutionality of the provisions of Article 129, parts one and three of Article 133, as well as parts one to four and eleven of Article 133.1 of the Labor Code of the Russian Federation in connection with the complaint of citizen S. F. Zharov "(hereinafter referred to as Resolution No. 17-P) The Constitutional Court of the Russian Federation recognized the interrelated provisions of Art. 129, hh. 1 and 3 tbsp. 133, part 1–4, 11 art. 133.1 do not contradict the Constitution of the Russian Federation, since according to their constitutional and legal meaning in the system of current legal regulation they do not imply the inclusion in the salary (part of the salary) of an employee not exceeding the minimum wage, increased payment for overtime work, night work, weekends and non-working days holidays .
Thus, from the content of Resolution No. 17-P it directly follows that starting from April 13, 2022, increased payment for overtime work, night work, weekends and non-working holidays is not included in the salary (part of the salary) of the employee, not exceeding the minimum wage.
In accordance with Art. 16 of the Labor Code of the Russian Federation, labor relations arise between an employee and an employer on the basis of an employment contract concluded by them in accordance with the Labor Code of the Russian Federation.
Article 57 of the Labor Code of the Russian Federation provides that the terms 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 an employment contract.
When concluding an employment contract with an employee, it is necessary to provide him with a monthly salary in an amount not lower than the minimum wage (taking into account Resolution No. 17-P), in the regions of the Far North and equivalent areas - not lower than the minimum wage (taking into account Resolution No. 17-P) with accrued above the minimum wage by the regional coefficient and percentage bonus.
If the employee is subsequently offered a change in working conditions (transfer to work with harmful and (or) dangerous working conditions, combination of professions (positions), expansion of service areas, etc.), it is necessary to establish an additional payment in addition to the salary established by the employment contract.
[1] Ruling of the Supreme Court of the Russian Federation dated 08.08.2016 No. 72-KG16-4.
How does the minimum wage affect vacation pay?
To calculate vacation pay, the employee's average daily earnings for the previous 12 months are used. The result obtained cannot be less than the average daily earnings based on the minimum wage.
Example : An employee takes full vacation (28 days) in March 2022. His average daily earnings for the previous 12 months are 427 rubles.
Let's determine the average daily earnings taking into account the minimum wage: 12,792 / 29.3 = 436.59 rubles.
436.59 > 427. This means that we calculate vacation pay based on the minimum wage: 436.59 * 28 = 12,224.52 rubles.
How does the Labor Code of the Russian Federation interpret the concept of wages?
In Art. 129 of the Labor Code of the Russian Federation states that earnings include, in addition to the basic remuneration, compensation and incentive payments. The regional coefficient acts as a kind of compensation for working in an area with a special climate, so it is taken into account as part of labor costs and is part of earnings. However, there is no clear answer in the Labor Code as to whether such an additional payment is included in the minimum wage. We wrote more about what payments are included in the minimum wage here.
How does the minimum wage affect sick leave?
When calculating sick leave benefits, the minimum wage is applied if:
- the employee’s average earnings for the previous 2 years are less than the minimum wage;
- the employee has not worked for the last 2 years and has had no actual earnings;
- the employee's insurance experience is less than six months;
- there are grounds for reducing benefits: injury while intoxicated, failure to appear at the doctor without good reason, violation of the treatment regimen.
Since in 2022 all subjects of the Russian Federation switched to direct payments from the Social Insurance Fund, employers pay only the first three days of sick leave.
Example: employee’s work experience is 5 months. He brought sick leave for 10 days. We will calculate the amount of benefits for three days of sick leave based on the minimum wage. The average daily earnings will be: 12,792 * 24 / 730 = 420.56 rubles. Benefit amount: 420.56 * 3 = 1,261.68 rubles.
How to calculate salary taking into account coefficients
It is not difficult to determine the amount that the employer is obliged to pay, knowing whether the regional coefficient and the northern bonus are added to the minimum wage. To do this, the accrued salary must be multiplied by both additional payments, and then added up all the amounts. If you intend to find out the amount in hand, then do not forget to subtract 13% of personal income tax.
Using the example of citizen Klubtekaev K.K., who has been working at a research institution in Norilsk for 3 years, we will show how to calculate the minimum wage with the regional coefficient and the percentage increase due to him. Let’s say his salary is equal to the minimum wage: in the Krasnoyarsk Territory it is equal to the federal indicator and amounts to 12,792 rubles. According to the Decree of the State Committee for Labor of the USSR, All-Union Central Council of Trade Unions dated 09/04/1964 No. 380/P-18 in this area and for this work, the RK is 1.8. The city of Norilsk is classified among the “other regions” of the Far North, and on the basis of Decree of the Presidium of the USSR Armed Forces dated September 26, 1967 No. 1908-VII, the bonus for 3 years of experience is 60% of earnings. Let's calculate how much the employee will receive.
12,792 x 1.8 = 23,025.6 (rub.) - regional coefficient;
12,792 x 60% = 7675.2 (rub.) - percentage increase;
12,792 + 23,025.6 + 7675.2 = 43,492.8 (rub.) - accrued amount;
43,429.8 - 13% = 37,838.7 (rub.) - amount in hand.
IMPORTANT!
When making calculations, use the current regional minimum wage and the regional coefficient in 2022, otherwise you will get an incorrect figure. And if the employer calculated the salary incorrectly, then difficulties will arise: either he will have to prove the existence of a calculation error and withhold the overpayment, or pay additionally both the unpaid amount and interest for the delay.
Please note that both bonuses relate directly to wages, and when asked whether the regional coefficient applies to the minimum wage, salary or bonuses, the answer is yes. But they are not used for payments calculated from average earnings - sick leave, business trips, vacation pay (see Letter of the Ministry of Labor dated April 18, 2017 No. 11-4/OOG-718).
One more thing. To assign payments to the poor, two figures are compared - the applicant’s income and the cost of living in the region of residence. Income includes salary, which already includes allowances for working under special conditions. But neither the northern increase for length of service nor the regional coefficient has any effect on the cost of living; it is approved by the authorities of the subject, taking into account prices in the region. Please take this into account to help you determine whether you are entitled to benefits.
Is the regional coefficient included in the minimum wage?
Northern regional coefficients and bonuses due to workers in the Far North or in territories with a similar legal status should not be taken into account when analyzing the compliance of the level of remuneration of these persons with the requirements of the law.
This rule is confirmed in the current judicial practice (Resolution of the Constitutional Court of the Russian Federation of December 7, 2017 No. 38-P, clause 1 of the Review of Judicial Practice of the Supreme Court of the Russian Federation No. 2 (2018) (approved by the Presidium of the Supreme Court of the Russian Federation on July 4, 2018).
Let's summarize: the salary of an employee (meaning all its components in the sum: salary, tariff rate, bonuses, additional payments, etc. - see Article 129 of the Labor Code of the Russian Federation) who has worked full time is set at no less than the minimum wage (in including regional - in the cases specified in Article 133.1 of the Labor Code of the Russian Federation). And only then are regional coefficients applied to it. This information is current as of 2021.
The issues of remuneration for the work of persons working part-time are discussed in more detail in our other article: “In what cases is part-time work established?”
Minimum pension in the Sverdlovsk region in 2022
The minimum pension in the Sverdlovsk region will change from January 1, 2022 in accordance with the cost of living of a pensioner. The minimum pension amount as such is not determined by law. But Federal Law No. 178 states that a pensioner’s income (and most often this is one pension) cannot be lower than the pensioner’s subsistence level approved in the region. Thus, it turns out that the minimum pension in the Sverdlovsk region in 2022 is the Sverdlovsk pensioner’s minimum wage in 2022, that is, in accordance with the resolution of the regional Government, 9,969 rubles.
If a Sverdlovsk pensioner’s income is less than 9,969 rubles in 2022, he has the right to receive an additional payment up to this level. Only the application nature of the additional payment is assumed; it is not automatically assigned.
Regional minimum wage and regional coefficient: what does the salary include?
Now organizations acting as direct employers can be full participants in regional agreements on establishing a minimum wage level in a specific region of our country. At the same time, the mechanism for determining this level remains the same, without any additional changes. The only condition in this case will be the fact that the regional coefficients themselves, operating in a particular region, will not be applied here.
If we talk about the main differences of the above-described system for setting the level of wages, it can be noted that in this case the income of a particular employee will not be focused on the minimum wage established officially. However, here the level of wages can be focused on the minimum wage, which was established by authorized persons at the regional level.
