In what cases does the salary change?
An increase or decrease in wages of public sector employees occurs, as a rule, in connection with indexation, changes in the structure of the employer and are introduced by regulations of the relevant executive authorities. It can be:
- Orders of the Government of the Russian Federation (Ministry of Internal Affairs of Russia, Ministry of Health of Russia, etc.).
- Resolutions of the executive authorities of the constituent entities of the Federation.
- Resolutions of Municipal Administrations.
- Letters and memos from higher authorities of the company.
A wage reduction can be initiated on the basis of Article 74 of the Labor Code of the Russian Federation - only for reasons related to new organizational or technological working conditions. The list of grounds is closed.
The employer is obliged to notify the employee in writing of the upcoming changes, as well as the reasons that necessitated the need for innovation, no later than two months in advance. The size of the increase, its frequency, minimum and maximum wages are set by the relevant government body, local government or employer (however, it cannot be lower than the minimum wage).
Main nuances when drawing up an agreement
The agreement form does not have a unified form and, like an employment contract, can be formed in any form or according to a template developed for this type of paper within the company and approved in its accounting policies. However, at the same time, in form and structure it must comply with certain standards of office work, and in text and content - with the rules of the Russian language.
In addition, there is a number of information that must be indicated in the document:
- The form must include the name of the employing company, position, full name of the employee, number and date of the employment contract to which this additional agreement relates.
- Further in the text of the document, you should indicate the fact of reaching an agreement, the reasons for changing the salary (if desired or as necessary), and also reflect point by point all the changed conditions (here you must enter the new salary amount).
- You should also be sure to write down the date on which these changes come into force, and also note that this agreement serves as part of the employment contract.
Salary Guide: Responsibility for Violations
Wages (employee remuneration) - remuneration for work depending on the qualifications of the employee, complexity, quantity, quality and conditions of the work performed, as well as compensation payments (additional payments and allowances of a compensatory nature, including for work in conditions deviating from normal, work in special climatic conditions and in areas exposed to radioactive contamination, other compensation payments) and incentive payments (additional payments and incentive allowances, bonuses and other incentive payments). This definition is provided for in Part 1 of Art. 129 Labor Code of the Russian Federation.
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In most cases, if innovations concern all personnel, and the organization maintains a staffing table (SH), the employer formalizes the changes in the form of a SH. Amendments to it are made in accordance with the order of the head of the organization or a person authorized by him. You will find a sample SR below.
If the changes affect only part of the staff, it is more advisable for the employer to draw up an order to change salaries in free form. To do this, use our sample.
It should be remembered that if the organization has a ShR, a new salary is assigned to the position. Therefore, if a position is occupied by several employees, and only one of them needs to increase their salary, a new position will have to be introduced.
Contents of the order to change employee salaries
The legislator did not approve the order form. This means that each employer develops it himself.
The document contains the employer's company name, date and place of production. Next, the name is “order” and number (according to the employer’s accounting documents). The narrative must contain a rationale. In connection with this, an order was issued to change the salaries of employees. Financial crisis or, conversely, obtaining above-plan profit. Organizational and staffing measures or annual indexation, etc.
If an employer issues an order to change employee salaries in relation to several employees, it is advisable to devote a separate paragraph to each. In which to state that from a certain date (we indicate the date) the salary of the employee (position, surname, first name and patronymic) will be so much (in numbers and in words).
The employer appoints persons who monitor the execution of the order. Be sure to notify your accountant for proper payroll calculations. And personnel employees (if any) for familiarization with persons in respect of whom an order was issued to change employee salaries.
Compilation rules
Since the procedure and rules are not regulated by law, it can be drawn up in any form. At the same time, in institutions and organizations of the public sector, the document must contain a link to the main administrative document of the parent company (or central office), the legal basis.
The rules for execution are no different from any other management personnel document, namely: the order must contain all the necessary details - the date of preparation, the date of entry into force, describe in detail the circle of persons to whom it applies, have the necessary visas and approvals.
Justification for a mandatory salary increase - sample order
Document the salary increase in administrative documentation. Let's look at how to do this using an example.
From January 1, 2020, the minimum wage is 12,130 rubles. If we have employees whose wages are below the minimum wage, then we are obliged to increase it.
You can do this in two ways:
- establishing a new monthly salary;
- establishing an additional payment up to the minimum wage.
To set a new salary amount, issue an order to increase it. The order is drawn up in any form indicating the reasons for the salary increase and new payment amounts.
You can download the order to increase the salary to the minimum wage using the link below.
Based on the order, make changes to the staffing table, and also conclude additional agreements to employment contracts with employees, since the condition on remuneration is an essential point of the employment contract (Part 2 of Article 57 of the Labor Code of the Russian Federation).
However, it is not at all necessary to increase the salary each time in connection with an increase in the minimum wage. You can include in the wage regulations a condition for additional payment up to the minimum wage, specifying the conditions for its appointment and the procedure for calculation.
IMPORTANT! By choosing this method, you will have to ensure that the total amount of payments to the employee is not lower than the minimum wage every month.
How to commit a change
If a decision is made to change an employee’s salary, it must be recorded in several documents at once:
- An order to change the salary is the main document for the enterprise, which states which employee and what salary should be set. Here it is determined from what date this change begins to take effect. The order may also contain instructions to change other documents.
- Staffing table - the document indicates the name and number of employee positions, as well as the salaries associated with them. In the event that an employee’s salary changes, the salary must also be changed in the staffing table. This step can be carried out by ordering changes, or by developing and introducing a new staffing table (if a large number of salaries are changing).
- Employment agreement with an employee - the Labor Code determines that the amount of an employee’s salary is necessarily fixed in the employment agreement with him. If the salary changes, then it is best to draw up an additional agreement to the employment contract on the salary change. Thanks to this document, the old provision of the contract changes to a new one.
Due to the increase
The salary increase procedure occurs at the same moment when an employee is transferred to a new position. And in this case, you cannot do without an additional agreement. It describes the new position along with the amount of remuneration for the work.
Once the parties sign the agreement, a final order is issued. For this, forms T-5 or T-5a are used. It is necessary to indicate the exact size of the bet after the increase. Information on the transfer is entered into the work book.
Watch the seminar on wages, minimum wage, salary and indexation:
The procedure for changing salaries in 2020
The procedure for increasing salaries may be caused by annual indexation, or the manager may decide to reward an employee. This can be documented as follows:
Step 1. Drawing up a memo
An employee’s immediate supervisor can send a note to the company’s management with a request to increase the salary of a subordinate for success at work.
In the case of annual indexation, the responsible employee (usually the chief accountant) draws up a memo informing management about the need to comply with the requirements of the law. The director reviews the document and, based on it, gives orders to prepare the necessary forms.
Step 2. Determining the new salary amount
If annual indexation of wages is carried out, then it is necessary to recalculate the accruals by the established coefficient in order to determine new earnings.
Step 3. Registration of the staffing table
It is necessary to reflect future salary changes in the document. Depending on the scope of the corrections, you can formalize changes to the current form (if the salary changes for only a few employees), or develop a new staffing table.
Step 4. Issuing an order to increase wages
It is necessary to issue an order to increase the salary. This must be done both for a single change and for indexing. This order can also approve a new staffing table, or change the existing one, give instructions for drawing up additional agreements, etc.
Step 5. Drawing up an additional agreement
Each employee affected by the promotion must enter into an additional agreement to their employment contract. This document will fix the new salary amount and determine from what date it will be effective.
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Procedure for applying the order
An employee’s salary can be changed either down or up; let’s consider these two cases.
Salary increase
An increase in employee salaries may be due to various reasons. The main examples are: an employee constantly exceeds the set plan and shows fairly high performance indicators; this can also be advanced training, the result of certification, long work experience in the organization, etc. This can also happen as a result of a change in job responsibilities or as a result of being assigned new functionality.
To initiate this process, the immediate supervisor of the subordinate must draw up a memo containing information about the reasons for increasing the salary of the specified person, and also provides a general description of the employee. The document can then be signed by an authorized person or director.
After the salary increase has been agreed upon, the HR department employee prepares an order to change the salary and an order to make changes to the staffing table. At the same time, it is necessary to reflect changes in working conditions in the employment contract - for this, an additional agreement is drawn up and signed by both the employee and the employer.
Salary reduction
Reducing an employee’s salary may cause some difficulties; the main rule is to be guided by current labor legislation. The main condition for the implementation of this procedure is the mandatory notification of the employee about this against signature two months before the occurrence of this event. This period is given to the employee so that he can decide for himself whether to continue working under these conditions or to write a letter of resignation and find a more acceptable job offer.
If, after this period, the employee decides to continue working in the organization, then it is necessary to draw up an additional agreement to the employment contract , which specifies new conditions of remuneration, as well as a corresponding order from the manager to reduce the amount of the salary.
Documents must be signed by both parties. In addition, the employee’s list of responsibilities specified in the job description may be reduced. He should also be informed about this against signature. Important! The employee must be notified of a reduction in his salary by signature, and the organization must do this 2 months in advance; if the employer is an individual, 14 days in advance; for a religious organization, the period is 7 days (Labor Code of the Russian Federation, Article 344).
If the employee refuses to accept the new conditions, the employer must offer him another option in writing, for example:
- Move to a lower rank position.
- Another job or vacancy that matches the qualifications of this employee.
- A job with less pay that is acceptable to the employee’s health level.
Alternative jobs and vacancies must also be provided to the employee against signature; upon reaching an agreement, additions (changes) to the employment contract and an order to change the salary portion are drawn up.