Some organizations reward their employees with additional monetary rewards - the so-called 13th salary. What is it and how is this payment calculated, who is entitled to it, whether the employer is obliged to issue it according to the Labor Code at the end of 2021, and other important nuances you will learn from our article.
Also see: “Salary payment deadline for December 2021“.
Legal basis
Labor legislation does not contain information about such payments. Including how the 13th salary is calculated. But Article 191 of the Labor Code of the Russian Federation stipulates the possibility of encouraging labor in any of the following ways:
- declare gratitude;
- issue a diploma or certificate;
- give a valuable gift;
- award a cash prize.
Moreover, the rights of the organization (IP) are not limited to the listed points. It is possible to introduce other forms of incentives. For more information, see “Types of bonuses and rewards: making a choice.” In this regard, we can say that 13 salaries can be paid at the employer’s discretion to anyone: a pensioner, someone resigning of their own free will, or anyone else.
Mandatory bonus at the end of the year
The employer pays 13 salaries on a voluntary basis. Whether there will be progress in its direction or not depends not only on the performance of employees, but also:
- organization capabilities;
- current remuneration system.
If the company suffered losses at the end of 2021, additional remuneration is usually not paid. And this is not a violation.
A different situation arises if there is a clause on annual bonuses in the company’s internal documents. Do they have the right to deprive 13 of their salaries in this case? The answer is clear: no. After all, this rule was established by the enterprise itself. It has undertaken to encourage high-quality work with monetary rewards, for which a special financial reserve must be created. If an employee deserved a bonus but did not receive it, when he goes to court, he will be able to restore justice.
The thirteenth salary is the annual payment to employees of the enterprise at the end of the calendar year. They are paid during the New Year holidays and are an unregulated form of incentives and bonuses.
13th salary. What Kazakhstanis need to know December 26, 2021, 09:30
At the end of the year, many employees receive a bonus, or the so-called 13th salary. A Tengrinews.kz correspondent found out who is entitled to it and whether it is possible to demand it from the employer.
According to lawyer Maxim Mostovich, the Labor Code of Kazakhstan does not contain the concept of “13th salary.” But there are terms such as “bonus” and “incentive payments”. Part 3 of Article 107 of the Code states that “the employer may introduce bonus systems and other forms of labor incentives to increase the interest of employees in increasing production efficiency and the quality of work performed.”
The lawyer also noted that by law the employer is not required to pay an annual bonus, but there are some subtleties.
“If the “13th salary” or other bonuses are included in the bonus system and this is secured by an employment contract or an act of the employer, then when the employee fulfills all duties and achieves the required indicators, bonuses are the responsibility of the employer,” said the specialist.
He added that if this clause is not spelled out in the employment contract, then the employer himself decides whether to reward the employee or not.
Lawyer Stanislav Lopatin shares the same opinion. According to him, if a company managed to save money from the budget during the year, then it can selectively distribute it to employees as a bonus. Bonuses are usually given to those who have worked in the company for a long time and make a great contribution to its development.
“The code says that people holding the same position and performing the same work for the same period of time cannot receive different salaries. Otherwise, it is called wage discrimination.
For example, if out of two mechanics who worked the same way, only one received a bonus, the second can contact the labor inspectorate. Then there will be a check. If he is not satisfied with the inspector’s decision, he can sue,” he concluded.
Source: https://tengrinews.kz/private_finance/13-ya-zarplata-chto-nujno-znat-kazahstantsam-387361/
How the 13th salary is calculated in Russia
The concept of “thirteenth salary” is used mainly only by staff in everyday life. Labor legislation does not regulate such a payment, so the accounting department does not have the right to register it as the employee’s next salary based on the results of a month that does not exist.
The enterprise independently determines:
- How are 13 salaries calculated?
- What indicators does it depend on?
All nuances must be spelled out in internal documents: collective agreement, bonus regulations, labor regulations, charter. Some innovations from 2021 in this regard will only affect small businesses. Management sets a budget for such payments, and the accountant distributes the funds.
To whom and for what: regulatory framework
Labor legislation requires the employer to pay wages on time. If desired and possible, organizations can reward their employees for achieving special results - high sales, a large number of clients, success in production, completing a project ahead of schedule. One way to thank someone for their work is to award a bonus (Article 191 of the Labor Code of the Russian Federation).
The procedure for paying monetary remuneration, including the criteria and conditions for selecting its recipients, must be spelled out in detail in the internal documents of the organization, for example:
- in the regulations on wages and bonuses;
- in a collective agreement;
- in the employment contract with the employee.
Who gets the 13th salary?
Year-end bonuses are usually given out on an ongoing basis in large companies or government agencies. To issue them, you need well-organized work of personnel specialists and competent execution of documents. The introduction of such an incentive system should not cause any particular difficulties.
Who exactly the funds will be credited to depends on the manager. Since the 13th salary is a method of encouragement, employees who have shown good results during the year and have not violated labor discipline will be able to count on it.
What to follow regarding how the 13th salary is calculated:
- Labor Code, art. 191 – incentives for work activities;
- Tax Code, art. 255 – funds included in labor costs.
Payment of cash benefits
The money that the mother is entitled to is taken from the Social Insurance Fund (abbreviated as SIF). But the final amount comes directly from the employer. Payments can be issued in the form of cash or transferred to a bank card.
Rules regarding maternity leave:
- the calculation is made within 10 days from the moment the employer receives the relevant documents and application from the pregnant employee;
- payments are also transferred within 10 calendar days;
- the employer must transfer the amount in a lump sum; sending funds in parts is not allowed.
The manager sends funds from his account and replenishes the costs through the Social Insurance Fund.
Expert opinion
Sokolov Vladimir Timofeevich
Lawyer with 8 years of experience. Specializes in family law. Has experience in protecting legal interests.
Thus, the maternity leave will not receive wages. But she will be paid a cash benefit for pregnancy and childbirth until the child turns 3 years old.
The question of who is entitled to the 13th salary worries many categories of workers. In essence, it acts as an incentive payment or reward for productive work performance.
Contents of this article:
- 13 salary - what is it?
- Who is it intended for?
- What influences the amount of money allowance?
- Is there a bonus for women on maternity leave?
- Awards for education workers
- Payment of annual bonus upon dismissal
- How is the bonus awarded?
- Legal consultation (Khabarovsk). Who is entitled to the 13th salary?
In this article, we will analyze whether the 13th salary is due, and which categories of workers can apply for it.
How to apply
In accounting, the “thirteenth salary” is issued under a different name. According to the organization’s documents, it can go like this:
- Year-end bonus for all employees of the enterprise.
- Cash rewards for individual employees for achieving excellent results.
- Bonuses for specialists due to their high level of qualifications.
It is important to make a choice before calculating the 13th salary.
The next step is issuing an order to provide a bonus on form T-11 or T-11a. The text provides reasons for the decision: exceeding the norm, increasing labor productivity, making proposals for savings, etc.
Reasons for reducing payments may be violation of safety regulations, non-compliance with labor discipline, etc.
You can download the forms of these standard orders on our website using the link.
The source of payment of 13 salaries may be a material fund created by management in order to reward good employees.
Some owners issue funds from retained earnings from previous years (JSC and LLC). Information about this should be in the charter. It is needed to process accounting transactions.
How is the 13th salary calculated?
The calculation procedure differs depending on the payment method.
Fixed amount
Used in cases where a bonus is assigned to some employees. The size of the bonus can be set in different ways at the discretion of the employer.
EXAMPLE Management has established in internal regulations how salaries for 2021 are paid to certain categories of employees. At the beginning of 2021, fixed amounts will be issued, which are:
- for management staff - 60,000 rubles each;
- for sales agents – 25,000 rubles each;
- for employees of the financial department - 32,000 rubles each.
Percentage of salary or calculation coefficient
Bonus payments can be differentiated according to certain criteria. For example, length of service, number of sales made, etc. Then the formula for calculating the 13th salary based on salary will be as follows:
- PREMIUMmax. – the largest amount of money that an employee can receive, according to the internal bonus rules;
- Drab. – number of working days per year;
- Dr. – the number of days actually worked per year.
PREMIUMmax. = SALARY × % Keep in mind: the amount may increase throughout the year, this must be taken into account.
In addition, the employer must not only inform in local documents how the 13th salary is calculated, but also deduct income tax from it to the budget. Example According to the bonus regulations, employees who have worked for a year in full (taking into account the main vacation) are given a bonus in the amount of 40% of the salary. Sales representative Topolev was on annual leave for 20 working days and 7 working days on vacation at his own expense. His salary is 36,700 rubles. How to calculate the 13th salary for an employee for 2021?
Solution
- Let us determine the maximum share of funds paid to Topolev subject to the conditions of the bonus provision: 36,700 × 40% = 14,680 rubles.
- Let's calculate the number of days actually worked by the employee. According to the production calendar, in 2021 the number of working days is 247. To receive the full bonus, you need to work 227 days (minus 20 days of required rest). Topolev worked: 3 – 27 = 220 working days.
- Here's how to calculate the 13th salary for Topolev, taking into account the time he worked:
Also see Bonuses and Income Tax: Taxation Rules.
Average annual earnings
The most labor-intensive process for calculating bonuses at the end of the year. The accountant will need certain information: the amount of the employee’s income for the year, the number of employees in the department, length of service, etc.
Now about how the 13th salary is calculated based on average annual earnings:
Salary.sr.g. + Pstage
- P salary average year – bonus from average annual income;
- Experience is cash payments provided for length of service.
Example
Construction calculates bonuses based on the average annual earnings of employees (indicated in the bonus regulations). How is the 13th salary of installer Larionov calculated if the bonus from the average annual income is 12,000 rubles, and additional payments for length of service are 6,300 rubles?
Solution
12,000 + 6,300 rub. = 18,300 rub. must pay Larionov 18,300 rubles.
How to calculate bonus salary
So, let’s determine the key points on how to calculate the 13th salary. First of all, the employer, together with the chief accountant, determines the amount of funds that are planned to be spent on bonuses for employees. Usually the bonus budget is formed from net profit or savings. The accountant then calculates individual bonus amounts in accordance with the rules approved by the organization.
The 13th salary should be paid before the New Year holidays - in December, unless otherwise provided by the company’s local regulations. For example, in some companies, bonuses are paid after the submission of annual financial statements or the deadlines are tied to other significant dates, for example, the day the company was founded.
The manager issued an order to reward the secretary at the end of the year in the amount of 45% of the official salary. The secretary's salary in accordance with the staffing table is 20,000.00 rubles.
Calculation of bonus payment: 20,000.00 × 45% = 9,000.00 rubles.
13 salary is subject to taxation in the usual manner. That is, income tax will be withheld from the accrued amount - personal income tax in the amount of 13%. The employer is also obliged to charge insurance premiums for the premium.
Is the 13th salary due on maternity leave?
Monetary remuneration is paid to an employee taking maternity leave, provided that she has fulfilled all points of the internal act entitling her to receive a bonus at the end of the year. When this fact is not stated in detail in the documents, the final decision remains with the employer.
Each employee of the organization must be familiar with the documents informing about the bonus procedure. They indicate how wages are calculated at a particular enterprise and for what reasons it may be reduced.
Who is entitled to bonuses?
Only management has the right to make decisions on salaries: who is entitled to the payment, and what is its maximum amount. Let us immediately note that the legislation does not establish any restrictions in these matters, and the employer independently determines who to give bonuses at the end of the year and who not.
Thus, the general director has the right to encourage all employees of the enterprise or issue an order in which specific specialists will be listed. It is worth noting that both the accrual and the refusal to accrue 13 salaries must be motivated. In simple words, a bonus can be denied for misconduct, failure to meet targets and other violations of internal labor regulations and discipline. You cannot simply deprive an employee of his 13th salary; there must be special grounds for this.
Also, the issue of assigning a bonus salary for “just like that” has not been resolved. Of course, the manager has the right to pay an incentive to the offending specialist, as if in advance, in order to motivate him to further exploits. However, such a situation can provoke unrest within the team. Therefore, when distributing bonus salaries among subordinates, you need to take into account their length of service, achievements, merits and quality of work performed.
