Amount and procedure for calculating the long service bonus


What is a long service bonus?


photo 800_1The bonus for length of service is provided for at the legislative level. It is received by employees who have worked in the organization for a certain period of time .
It is logical that the work of 2 citizens who work in the same position, but have different length of service, is paid differently. Having reached the established work experience, a citizen has the right to count on an additional bonus, but not on an increase in wages.

Attention! The exact interest rates of such premiums for Russians are not established by law.
The amounts of additional payments are prescribed in local regulations of organizations and statutory documentation. It doesn’t matter whether it’s a commercial company or a budget company.

Regulations on allowances: structure

The regulation on bonuses (those for length of service may not be the only ones that are fixed in it) consists of sections in which:

  • A definition of the premium is given and a description of the cases in which it is accrued is given.

In the case under consideration, an allowance in the Regulations may mean a payment that is established for the employee in addition to the basic salary and is accrued for length of service in the organization. The stated purpose of paying a bonus may be to stimulate an employee to improve his qualifications, skills, and mastery over the course of subsequent work in his place.

Many enterprises refer to additional accruals for length of service as additional payments. It's not a mistake. We can only note that traditionally the word “bonus” is used in the context of merit (long experience is also merit), and “additional payment” is used for work as such (under certain conditions and at a certain intensity). But this is completely unprincipled. “Additional payment” in the Regulations may be called an incentive payment for length of service, and the Labor Inspectorate will have no complaints about this.

  • The principles for calculating the allowance are given.

It can be accrued as a fixed percentage of the salary (which increases with length of service), less often - in a fixed amount, taking into account other factors or regardless of them. So, if a person works in harmful or dangerous conditions, then the percentage may be higher (the bonus is multiplied by an additional coefficient), just as the “speed” of his growth will be higher in relation to his length of service.

  • The principles for calculating length of service for bonuses are given.

Often, enterprises have a rule according to which length of service includes the time of continuous work in the organization (calculated from the first day of employment in it). Continuity criteria are also determined.

Benefits and allowances

The following long service benefits are provided for Russian pensioners:

  1. Tax. A person who has length of service has the right to be completely exempt from paying property taxes. The benefits apply to apartments, country houses, rooms, and garages. If a citizen owns several dwellings or outbuildings at once, the benefit can be applied for only 1 object.
  2. For medical care and treatment in sanatoriums and resorts . If a citizen has medical indications for undergoing a course of treatment, he has the right to use the services of departmental hospitals free of charge. There he will be provided with medications. Private medical centers and pharmacies are not covered by the benefit.

Benefits regarding treatment in sanatoriums and resorts do not mean that the citizen is completely exempt from paying for the voucher. Only 75 percent of the ticket price is reimbursed. In addition, the citizen is paid for travel to the destination and a return ticket.

  1. Medical for relatives. The benefit for medical care and hospital treatment can be used not only by the recipient of the pension, but also by his relatives, for example, a spouse, son/daughter. In this case, relatives must live in the same house with the pensioner, that is, they must be members of his family.
  2. Transport . Pensioners with length of service are not provided with transport benefits at the federal level. However, many constituent entities of the Russian Federation allow you to apply for benefits for free use of public transport. For example, in Moscow and the Moscow region, pensioners do not pay for travel on city and suburban transport. In St. Petersburg, pension recipients have the right to buy tickets at a reduced price.
  3. Housing. Pensioners with length of service have the right to apply for improved housing conditions by issuing a one-time payment. It is provided to those who do not own their own apartment or live in a dilapidated building. Payments are also provided to those who live in a communal apartment or in a dormitory.

First of all, military pensioners and former employees of the Ministry of Internal Affairs receive benefits for length of service.

Reference! For former health care workers, government employees and educators, the list of benefits will be much shorter.

To employees of the Ministry of Internal Affairs

Now it’s worth talking a little about what payments employees in the Ministry of Internal Affairs are entitled to. Of course, your position plays an important role here. And the monthly salary too. Nevertheless, as in all past situations, there are some limitations and principles of calculations.

additional pay for length of service for public sector employees

They will not immediately give you any specifics regarding additional payments for length of service to employees of the Ministry of Internal Affairs. They always say that such workers can count on payments ranging from 5 to 75% of the total salary. It all depends again on your position. This can also include some personal achievements and financial situation in general. Most often, a surcharge of 50% is established. There may be more. This is done to increase the number of employees in this area. A good trick that's worth paying attention to.

Categories of workers

For which professions are seniority bonuses provided? Please see the following list of the following employees who are eligible for additional pay:

  • army employees;
  • employees of the Ministry of Internal Affairs;
  • federal government employees;
  • astronauts;
  • medical workers;
  • municipal employees;
  • teachers;
  • pilots;
  • any other professions.

The employer has the right to establish additional payments for any positions. The difference between a long service bonus for a military personnel and, for example, an accountant in a private company is that the first is considered mandatory, while the second is provided solely at the request of the employer.

To find out what kind of salary supplements you can count on, an employee should study:

  • employment contract;
  • decisions on bonuses;
  • other regulatory acts of the organization related to remuneration.

Civil servants, in addition to bonuses for length of service, are provided with other material incentives, for example, for the type of work activity or position held. At the same time , additional payments do not exclude each other, therefore, the total amount of additional payments based on the results of work for the month can be 3-4 times more than the salary.

If we talk about employees of law enforcement agencies, what matters here is the place of service and its nature. For example, army pilots who participated in testing flight equipment, jumped with a parachute and ejected, are provided with benefits when calculating their length of service, that is, 1 month is counted as 2.

Civil servants

The next category of citizens are government employees. There are more interesting and non-standard points here that relate to payments. For example, an additional payment to the pension of civil servants for length of service can reach 200%. An impressive amount, isn't it? But such cases are quite rare. Nevertheless, they do exist. It all depends on your position and the place you occupy. For example, the lowest level can count on an increase of up to 60% of the salary, and the highest level - by 200%. In cases where a citizen carries out activities related to some secret or important information, the additional payment for length of service can range from 5 to 75%, and the protection of state-important data is “rewarded” from 10 to 20%. It all depends on your work experience.

However, these are quite rare cases. And civil servants are most often interested in more general points. What are the general allowances? Additional pay for length of service for civil servants is established based on the amount of length of service itself.

If your work experience in this field does not exceed 5 years, but you have more than 1 year, you can only count on 10% of the total salary. In principle, not so bad. After all, most civil servants receive good wages. For periods up to 10 years of service, this limit increases to 15%. If your “experience” is from 10 to 15 years, according to calculations, 20% of the total salary for your position will be added to your pension. But that is not all. As soon as you “step over” this bar, that is, you have 16 years of service or more, the additional payment will be 30%. And it won't rise anymore.

surcharge for length of service for municipal employees

How to calculate the payment

photo 800_2
Additional payment to public sector employees for work experience is provided for by the Labor Code of Russia, legislative acts of the regions of the Russian Federation, decrees and other resolutions of ministries and departments.

Any budget institution has its own methods of rewarding employees. Based on the basic norms of the Labor Code of the Russian Federation, such organizations develop special provisions that relate to remuneration.

In addition, additional payment for length of service to public sector employees should be provided for in the wage regulations or decree on bonuses. At the same time, the legislation almost does not limit the employer in assigning incentive payments.

If we talk about civil servants, then we need to take into account the norms of the legislative act “On the State Civil Service of the Russian Federation”. In accordance with the norms of this document, the additional payment for length of service to a civil servant is equal to:

  • 10 percent of the salary – with 1-5 years of experience;
  • 15 percent of the salary – with 5-10 years of experience;
  • 20 percent of the salary - with 10-15 years of experience.

If a citizen has held the corresponding position for more than 15 years, then the amount of the additional payment will be equal to 30 percent.

As in the case of civil servants, the Ministry of Internal Affairs of the Russian Federation rewards its own employees for their accumulated experience with additional pay, which depends on the salary. The positions of employees who are entitled to receive additional payment are listed in Decree of the Ministry of Internal Affairs of Russia number 1259.

In accordance with this legislative act, additional payments are provided for service by employees of the Ministry of Internal Affairs in:

  • the central apparatus of the Ministry of Internal Affairs of the Russian Federation;
  • Migration Service of Moscow and Moscow Region;
  • duty units;
  • temporary accommodation centers for citizens under 18 years of age;
  • cavalry units.

The bonus for length of service for army employees is calculated in accordance with the federal law “On monetary allowances for military personnel.” The amounts of additional payments are as follows:

  • length of service is 2-5 years - a ten percent increase in salary;
  • 5-10 years - fifteen percent;
  • 10-15 years - twenty percent;
  • 15-20 years old - twenty-five percent;
  • 20-25 years old – thirty percent;
  • more than 25 years – forty percent.

photo 800_3

Definition of the term and legal regulation

Article 135 of the Labor Code of the Russian Federation, which regulates the procedure for remuneration, establishes recommendations for ensuring a uniform procedure in the formation of wages for public sector employees. Decree of the President of the Russian Federation No. 1152, as amended on January 16, 2017, determines the procedure for calculating length of service to establish compensatory payments for length of service for state and municipal employees.

The amount and procedure for payments are regulated by their own regulations in each field of activity, but the unifying indicator is length of service. What is this – a parameter of quantity or quality of service? The indicator combines the impeccable performance of official duties, takes into account the period of exposure to extreme conditions, the arithmetic calculation begins immediately from the moment of registration for the corresponding position and ends with the moment of termination of the relationship. When resuming after a break, regardless of the duration, it continues to be calculated on a cumulative basis.

In accordance with acts of law enforcement agencies and civil regulations, in addition to the actual performance of duties during the period of service, the following is included:

  • time of treatment and rehabilitation after injury or occupational disease;
  • being in captivity or on the list of missing persons;
  • appointment to an elected position;
  • illegal dismissal with subsequent reinstatement by court decision;
  • training in the direction of management personnel for a period not exceeding five years.

Separately, the time spent in hot spots, places of accidents and disasters as liquidators, the period of service in the Far North and equivalent territories are taken into account.

In accordance with Law No. 306-FZ of November 7, 2011, length of service is considered according to certain parameters for military personnel:

  • pilots, parachutists and workers testing ejection devices – 1:2;
  • crew members of combat ships and oceanographic expeditions - 1: 1.5.

Additional payment for length of service, taking into account the special procedure for calculating length of service, is an obligation at the level of local, regional and federal budgets, under government control. Commercial organizations, when forming a remuneration mechanism, can indicate in local documents an increase for length of service, but this is only a right, and not an obligation, unlike state employees.

Is it possible to receive a pension and long-service bonus at the same time?

In fact, a long service bonus is provided to any citizens who have accumulated a certain length of service and retired. True, the cash payment after leaving work is transformed into a pension. This is clearly seen in the example of a labor pension. The more years a person works, the more pension points he earns. The amount of monthly payment provided depends on the number of pension points.

Important! Military personnel do not receive a labor pension, but a pension for long service upon retirement. The number of years a citizen spent in service also matters here. A similar rule applies to police officers and other law enforcement officers.

State employees

Let's start with, perhaps, one of the most common categories of working citizens. We are talking about the so-called state employees. It is for them that our current allowances play an important role. After all, as practice shows, the salary of such people is not too high. This means you can’t count on a good pension.

Of course, the additional payment for length of service to public sector employees is calculated based on how much citizens have worked. True, this moment is regulated in each institution somehow in its own way. For example, it is no secret that state employees are entitled to certain bonuses for their qualifications and their improvement. But now a little bit about that.

Additional pay for length of service is provided to public sector employees based on length of service, length of service and salary. Exactly the same as in all other cases. What do we end up with?

If a citizen has up to 3 years of service, then you can only count on an increase of 10% of the salary. Not too much, but it's better than nothing at all. In the period from 3 to 5 years, this figure doubles. And in this case, the additional payment will be 20% of the salary. As soon as the length of service “steps over” the five-year period, you will receive a 30% increase. Regardless of how much you worked overtime.

supplement to pensions for civil servants for length of service

How is work experience calculated?

How to calculate length of service and work experience? The main document for this purpose is the work book, from which information is taken to calculate work experience. What is included in the concept of “length of service” and what it is.

When calculating this indicator, in addition to working time, periods are taken into account when the employee:

  • studied,
  • was on social security (benefits),
  • was registered with the employment service,
  • was a civil servant
  • was a political or public figure,
  • was in prison
  • was a political prisoner.

After all the data has been collected, you can proceed to the calculation. As a rule, no one calculates length of service manually, although it is not at all difficult to do this, and in some cases it is necessary. Today there is special software that helps you quickly calculate - a calculator for calculating surcharges. The most popular calculation program is 1C.

Long service bonus
Monthly bonus for long service

Commercial organizations

When calculating additional payments in a commercial organization, you must carefully read the following documents:

  • labor agreement,
  • collective agreement,
  • regulations on the award,
  • other regulations (if any).

The main document that explains how to calculate possible additional payments and compensations is the concluded contract between the employer and the hired specialist. Commercial enterprises, as a rule, incentivize employees with rewards based on a percentage of their salary. If an employee was sent on a business trip or did not work due to illness, his seniority continued to accumulate, so additional payments would continue.

Attention! The employer determines the amount of remuneration at his own discretion. The value can vary from 5% to 30%.”

For commercial organizations, the following accrual procedure :

  1. Payments are made every month, and the amount cannot be strictly fixed.
  2. The calculation is made based on the amount of wages.
  3. If an employee replaces another, then a percentage of the salary of the employee whom he replaces is added to the bonus from the basic salary
  4. In case of career growth and subsequent increase in official salary, the amount of additional payment will be recalculated only after the salary increase.

Government agencies

For people who are state civil servants, the bonus for length of service is calculated in a special way. It is based on how long a person has been in the service, which should be his main job . The second criterion is the amount of salary received by the employee according to the tariff.

Additional payments for length of service to state civil servants are distributed depending on the length of their employment:

  • if a person has worked from 1 to 3 years, the bonus will be equal to 10%,
  • from 3 to 5 years – 15%,
  • from 5 years to 10 – 20%,
  • if the work experience exceeds 10 years – 30%

If a person works part-time, then he is not entitled to any bonuses due to state civil servants .

For employees of the Ministry of Internal Affairs

Additional payments for employees in the Ministry of Internal Affairs can be divided into several parts. They are awarded for length of service, level of qualifications, special working conditions, for working with documents classified as “Secret”, and special distinctions.

The bonus for length of service is defined in Decree of the Government of the Russian Federation No. 1158 of December 27, 2011 and applies to all employees of the Ministry of Internal Affairs .

The document says:

  • if an employee has served from 2 to 5 years, then he is entitled to an additional payment equal to 10% of the salary,
  • those who have served from 5 to 10 years are entitled to an additional payment equal to 15% of the salary,
  • with a service life of 10 to 15 years, the surcharge increases to 20%,
  • from 15 to 20 years – 25%,
  • from 20 to 25 years – 30%,
  • if the service life exceeds 25 years – 40%.

There are other motivational payments, but length of service does not play a determining role for them. To make a calculation and determine how much the length of service bonus for an employee of the Ministry of Internal Affairs will be, you can use a special calculator (1C).

Long service bonus
Long service bonus for employees of the Ministry of Internal Affairs up to 40%

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Additional payments to military personnel

The percentage bonus for length of service for military personnel has its own characteristics. It is calculated in the same way as for employees of the Ministry of Internal Affairs. For this incentive to take effect, you must serve at least 2 years. The longer a person remains in military service, the greater the reward becomes.

For those whose work involves flying helicopters and airplanes, provided that they take part in tests, 1 month of service is equivalent to 2 months of work experience.

In 2020, the percentage bonus for length of service for military personnel was changed.

The procedure for calculating additional payments, in accordance with these changes, became as follows:

  • if a person serves from 0.5 to 1 year, he is paid an additional 5%,
  • 1-2 years – 10%,
  • 2 - 5 years - 25%,
  • 5 - 10 years - 40%,
  • from 10 to 15 years – 45%,
  • from 15 to 20 years – 50%,
  • 20 – 22 years – 55%,
  • from 22 to 25 years – 65%,
  • if more than 25 years – 70%.

Those who have served longer than 25 years receive an additional payment equal to 25% of their salary, instead of the pension they would have already received.

Long service bonus
Long service bonus for military personnel up to 70%

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Budget institutions

The bonus for length of service for people employed in a budgetary institution is calculated quite simply.

Depending on how many years a person has worked in a particular budget organization, the amount of payment will increase:

  • an employee who holds his position for 1 to 5 years will receive a fixed payment equal to 10% of the salary. He will receive it every month,
  • an employee whose work experience is from 5 to 10 years will receive an additional 15% of his salary every month,
  • a person who has worked for 10 to 15 years in a budget organization can count on a 20% additional payment every month,
  • If the work experience exceeds 15 years, the additional payment becomes equal to 30%.

In addition to bonuses for length of service, there are a number of others. As a result, in a month you can accumulate an amount that exceeds the salary portion several times.

The concept of bonus for experience

Amount of bonus for length of service

Fulfillment of the work plan involves a bonus, promotion - an increased salary, and for long work - financial incentives. Experience bonus is a monthly monetary remuneration for long service. The amount of the bonus is calculated by the accounting department as a percentage of the bare salary and depends on the number of years worked and working conditions. The remuneration amount varies from 4 to 100%.

Who is entitled to

Categories of employees who are guaranteed an increase:

  • teachers;
  • medical personnel;
  • military personnel and law enforcement officers;
  • civil servants and cultural workers;
  • employees of the Ministry of Emergency Situations and the fire service.

Employees of private commercial enterprises receive additional payment for production. The Labor Code does not oblige the employer to increase the wages of subordinates who have been working in one place for several years: the decision on bonuses is made by the management of the enterprise. When hired, the candidate signs a collective labor agreement, which specifies the possibility of payment for work experience and its amount.

Conditions of receipt

When calculating the bonus, only dates from the work book are taken into account. For example, a kindergarten teacher has been working since November 12, 2020, but the official entry into service was made only on January 1, 2016. This means that the length of service is counted from 01/01/16.

When calculating the service life, all the time while the employee was not performing duties and retaining his position is taken into account:

  • sick leave and vacation;
  • decree;
  • travel time;
  • military service;
  • serving a sentence in prison for political crimes after rehabilitation.

Years worked are taken into account only at the main place of employment - there will be no payments for combined employment. For some professions, 1 month of actual experience can be equivalent to 1.5 or 2 months.

How is it calculated

Calculation of allowance

Payments for long-term work are a percentage of the current official salary. The monthly salary increase is accrued from the next month after the conditions occur. For example, if a civil servant was hired on November 23, 2017, an additional payment of 5% for work over 1 year is accrued along with the basic salary on December 1, 2020.

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