Salary calculation by minimum wage category and rank
The minimum wage is a value established at the legislative level. It is used as a guide when calculating the minimum allowable wage, as well as some benefits. Can the salary be less than the minimum wage and under what conditions? In general, an employee’s monthly income should not be below this level. But, as always, there are many nuances. The minimum wage and the subject's minimum wage The size of the minimum wage in 2021 is 7,800 rubles, and from next year it will increase to 9,489 rubles. From 2021, the minimum wage will be increased to the subsistence level. Now this equality is not respected, although the Labor Code directly states that this is unacceptable.
- Arouse workers' interest in the wage system;
- Payment for identical work is equivalent;
- Divide rates not only depending on the skill of the staff, but also on the results, complexity, and intensity of the activity;
- Create interest in replenishing the workforce;
- Provide bonuses and salary increases to highly qualified specialists who show significant results for production;
- Raise prices for work performed above standards.
New changes to the minimum wage: prerequisites
- The Federal Tax Service pays attention to understated incomes in forms 6-NDFL, “Calculation of insurance premiums” (special control ratios have been developed for this purpose, comparing indicators with the minimum wage and industry average wages in the region);
- inspectors will send a demand to the employer to explain the low salary figures;
- tax officials send information about violations to the labor inspectorate, so employers who underestimate wages may be called to the labor commission;
- the payer also risks being included in the plan of on-site tax audits (clause 5 of Appendix 2 to the Federal Tax Service order No. MM-3-06/333 dated May 30, 2007).
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Introduction of a new hourly minimum wage
Legislators are concerned that understatement of wages allows entities to receive unreasonably inflated profits and illegally reduce payments on taxes and contributions. At the same time, subordinates are forced to agree to payments “in envelopes”, for fear of being left without work, especially during the COVID-19 pandemic.
From 2021, the rules for calculating wages will change. It will be useful to know how salaries are calculated not only for accountants, but also for ordinary workers, in order to make sure that the correct amounts were accrued to them. Let's look at the changes for 2021.
The tariff rate of the first category may be lower than the minimum wage
The tariff rate has its own economic significance and is an important stimulator of professional growth of employees. Why was the tariff system of remuneration invented? With the transition of our country to market economic conditions, the tariff system of wages played a fairly significant role. In the context of a protracted economic crisis, continuous rise in prices and inflation, such a system became a guarantor of the stability of income received and, as a result, helped maintain the standard of living of certain segments of the population at the proper level.
What threatens the employer if the salary is less than the minimum wage? The competent authority will check whether it was possible to pay the salary less than the minimum wage. And yet, can the salary or salary be less than the minimum wage? What threatens the employer if the salary is less than the minimum wage? The minimum wage (minimum wage) is a constantly changing value , so it needs to be tracked. Its size is established by amending the Law “On Minimum Wages” dated June 19, 2021 No. 82-FZ. As of 07/01/2021 it was 7,800 rubles. from 01/01/2021 it is equal to 9,489 rubles, and from 05/01/2021 it will be 11,163 rubles (see more about this in our article “The size of the minimum wage from January 1, 2021 in Russia”). From 05/01/2021 its size will reach the subsistence level, which will also comply with the obligations of the Russian Federation to the Council of Europe. The obligation to adhere to the minimum wage is laid down in the Constitution of the Russian Federation (Articles 7, 27), the Labor Code of the Russian Federation (Articles 133, 133.1) and Law No. 82-FZ (Articles 2, 3).
Monthly, daily, hourly - what's the difference?
It is convenient to use the rate where it is possible to clearly standardize the amount of work and the time required to complete it. In this case, it is permissible to say that the minimum tariff rate is applied, which is the ratio of one unit of product and the minimum time period required for its production.
Definition of the concept
The answer to the question of what a tariff rate is is contained in the third part of Article 129 of the Labor Code - this is a fixed amount of remuneration for an employee for fulfilling a standard of work of a certain complexity (qualification) per unit of time (Article 129 of the Labor Code of the Russian Federation).
The second option is preferable, because it is enough to fix the compensatory additional payment only once. Accrual will occur automatically. That is, the employer will only need to look at the table of minimum wages by region of Russia, find the required indicator, and calculate the amount.
On January 1, a new minimum wage was introduced. Its value was 12,792 rubles monthly. It was assumed that this figure would be less. However, Russian President Vladimir Putin opposed it. He recalled that wages below the minimum wage are unconstitutional, so this should not be allowed.
What salary should employees have taking into account the new minimum wage in 2021?
Individual industries have their own payment standards. They are indicated in the corresponding agreement. The texts of the latter are published on the website of the Ministry of Labor of the Russian Federation and in a number of official publications. It is advisable to keep track of all this.
- the number of working hours in each month is different, and a monthly change in the hourly rate is not convenient or advisable;
- the hourly rate determined on the basis of the minimum wage is considered too low. For example, if the minimum wage is 12,130 rubles, then the cost of an hour in May with 135 working hours will be 89.85 rubles. (12,130 / 135), and in July with 176 working hours - 68.92 rubles. (12,130 / 176).
Until 2021, the size of the annual federal minimum wage was determined on the basis of information on the cost of living of able-bodied citizens for the 2nd quarter. the previous year. In 2021, the minimum wage was 12,130 rubles. (Federal Law No. 463-FZ dated December 27, 2019).
Changing the rules for calculating the minimum wage
But starting from 2021, the minimum wage will be calculated differently, since State Duma deputies adopted bill No. 1027748-7 in the third reading. For the calculation, the median salary will be used - this is an indicator that conditionally divides the population into two parts. One part has a salary above this value, and the other part has a salary below this value.
The bill clarifies that starting from 2021, the ratio of the minimum wage to the median salary will be set at 42%. This ratio will be reviewed at least once every 5 years, taking into account socio-economic circumstances.
The rate of a 1st category worker may be lower than the minimum wage
The obligation to adhere to the minimum wage is laid down in the Constitution of the Russian Federation (Articles 7, 27), the Labor Code of the Russian Federation (Articles 133, 133.1) and Law No. 82-FZ (Articles 2, 3). Failure to comply will result in administrative liability under Part 6 of Art. 5.27 of the Code of Administrative Offenses of the Russian Federation, which determines the elements of the offense: setting a salary in an amount less than that provided for by labor legislation.
The minimum wage (SMW) is a constantly changing value, so it needs to be monitored. Its size is established by amending the Law “On Minimum Wages” dated June 19, 2021 No. 82-FZ. As of 01/01/2021 it was 9,489 rubles, and as of 05/01/2021 it is equal to 11,163 rubles. (see more about this in our article “The size of the minimum wage from January 1, 2021 in Russia”). From 05/01/2021 its size reached the subsistence level, which also corresponds to the obligations of the Russian Federation to the Council of Europe.
We recommend reading: Http//zhkh.fas.gov/calc-jkh.
Introduction of a new hourly minimum wage
The minimum wage is set annually and is equal to the subsistence level of the working-age population for the 2nd quarter of last year. In 2020, this figure is 12,130 rubles. (Federal Law dated December 27, 2019 No. 463-FZ). Regions can set their own minimum wage, which cannot be lower than the federal one, i.e. 12,130 rubles.
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Minimum wage (minimum wage) is a guideline used when paying wages and calculating benefits. In 2021, a new indicator is expected to appear - the minimum hourly wage rate. Let's talk about the upcoming innovation.
Until 2021, the minimum wage was determined based on the cost of the consumer basket. According to the new rules, there will no longer be such a link - now the minimum wage is determined by the median salary. This is the salary at which half of the country’s citizens have an income above this value (median), and half - below.
The procedure for determining the minimum wage (minimum wage) has changed, which directly affects wages and many other payments - benefits, allowances, etc. The minimum wage is the amount below which an employee’s salary cannot be, however, this amount is calculated without taking into account taxes and fees.
