An employee's salary is subject to indexation, that is, an increase in accordance with the rising cost of living. What will be the specifics of the procedure in public and private enterprises, the general procedure, as well as which payments are subject to it and which are not. How salary indexation is carried out: calculation of coefficients and payments.
As Article 134 of the Labor Code states, employers should increase wages along with the rise in consumer prices. This is called indexing. Letter of Rostrud No. 1073-6-1 indicates that the regulations of the employing organization must establish the procedure for its implementation, which each such organization is free to establish independently.
And although the legislation clearly indicates that indexation is mandatory, it does not provide specific instructions on how often the procedure should be carried out, or how to calculate the amount of indexation. Thus, this is left to employers, which allows unscrupulous management not to take this norm into account and not carry out indexation for 2-3 years in a row.
The absence of a unified regulation gives rise to many ambiguities and conflicts between employers and employees or regulatory authorities. In particular, the following questions often arise:
As for the latter, if you rely on , it is worth considering price increases as the best guideline. In addition to it, indicators such as inflation and the cost of living for the working population can be used as a criterion for indexation. Both federal and regional indicators can be taken.
In them, salaries are indexed according to the orders of government bodies. Thus, in 2017, indexation is simply not carried out, however, starting from January 1, 2018, it will be carried out at a rate of 4%. In general, the Federal Law “On the State Civil Service of the Russian Federation” states that it should be carried out annually, and the inflation rate is taken as a basis.
Wage indexation, as already noted, is not regulated very clearly; in particular, the Labor Code does this only in general terms. Therefore, in a commercial organization, the employer himself determines how often it should be performed (but if this is done less than once a year, then he may have problems), and what indicators to tie it to. The main nuances of indexation should be determined by the internal regulations of the enterprise.
If there are no mechanisms for indexing at the enterprise, and as a result it is not carried out, this is a violation of the law and should entail fines.
Employees have the right, within three months from the moment the violation was discovered, to file a lawsuit and demand indexation and payment of the amounts that the organization underpaid them.
Sometimes the management of commercial organizations assures their employees that indexation is carried out only for those who work at state-owned enterprises. This is incorrect, and if a company does not have a clearly regulated indexation procedure, then this is considered a violation of labor laws. According to Article 5.27 of the Code of Administrative Offenses, the following fines are imposed: for an official or private entrepreneur - 1,000-5,000 rubles, for a legal entity - 30,000-50,000 rubles. In addition, if a violation of the law has already been recorded in a company, it will be checked more often in the future.
It must be set out in a document that guides the enterprise when carrying out indexation. When it is carried out for the first time, a corresponding normative act is adopted. Employees must review the document and sign to confirm this.
If an employee is just being hired, then he must be familiarized with the indexation document immediately so that he has an idea of the procedure for its implementation. The Employment Agreement also records information about it, and when wages change, the corresponding changes in it are recorded in an additional agreement.
That is, the order of indexing will be as follows:
There are two main methods of indexation; it can be either retrospective, that is, taking into account the rise in prices or inflation over the past period, or expected, that is, carried out in advance, taking into account the expected rise in prices.
It is necessary to index only the constant part of the salary - that is, the salary or tariff rate. But the obligation to index additional payments, such as food and financial assistance, is not imposed on the employer.
Various ones are often tied to wages and are paid as a percentage of it, that is, they change along with it, which does not require separate calculations.
However, those that are indicated in regulatory documents in the format of exact numbers will not be indexed. Therefore, it is advisable to carry out indexation separately for such payments, also including them in the document according to which it is carried out.
It is worth noting an important point: employers sometimes believe that if they increase employee wages, then indexation is not necessary. But this is not true, since salary increases and indexation are carried out in different ways and have different goals: the salary can be increased for one employee or part of it, for some it can be increased by 10%, for others by 30%, and so on. Here, everything depends solely on the will of the employer and his considerations regarding the need for this or that employee for the company. That is, the salary increase is intended to interest the employee in continuing to work for the company and benefit it. Indexation is needed to bring the wages of all employees in accordance with changes in consumer prices over the period and maintain their quality of life at the same level. Therefore, it provides for a simultaneous increase in wages by the same percentage for all employees of the enterprise.
The calculation will depend on the parameter to which it is linked. Minimum indexation usually corresponds to the level of core inflation and is carried out either quarterly or semi-annually.
Let us give an example of wage indexation carried out at the end of the quarter for the second quarter of 2017. Inflation in April was 0.33%, in May 0.37%, and in June 0.61%. If the employee’s salary was 35,000 rubles, then for April it should be 100.33% of this amount, that is, 35,000 x 1.0033 = 35,115.5 rubles. For May 35,115.5 x 1.0037 = 35,245.43 rubles. For June 35,245.43 x 1.0061 = 35,460.42 rubles.
As a result, wages should rise by a little more than 460 rubles. It is worth noting that inflation in 2017 is low, and at the end of the year it will probably be in the range of 2–2.5%, but if calculated for some previous years, when it was 4–5 times higher, the figures would be significantly more impressive .
This is retrospective indexation, now we will give an example of what is expected: for example, the consumer price index from the Federal Statistics Service is used for calculation. Thus, the forecast for 2017 was 3.2%, which means that the expected indexation should have been carried out as follows: at the end of 2016, perform a recalculation and, if the employee’s salary was the same 35,000 rubles, raise it by 3.2%: 35 000 x 1.032 = 36,120 would be wages from the beginning of 2017.
An important nuance is taking into account indexing in . If it was carried out during the billing period, then all payments should be increased in accordance with the conversion factor. So, if wages are raised by 3.2% from the previous example, then the conversion factor will be the same (1.032). All payments made during the billing period must be adjusted to the indexed one. This means that if the calculation period included 6 months of 2016 and six months of 2017, then the coefficient should be applied to those relating to 2016.
If indexation takes place directly on , then only payments for days starting from the date of its implementation will be indexed.
For example, if an employee is on vacation from June 1 to June 30, and indexation took place on June 21, then for the period June 1-20 he will receive regular payments, and for June 21-30 - with the coefficient applied to them. Salary indexation can also be approximately calculated if you use an online calculator, of which you can now find many on the Internet.
Good afternoon, Alexandra.
According to Art. 134 Labor Code of the Russian Federation
Ensuring an increase in the level of real wages includes indexation of wages in connection with rising consumer prices for goods and services. State bodies, local government bodies, state and municipal institutions carry out wage indexation in the manner established by labor legislation and other regulatory legal acts containing labor law norms, other employers - in the manner established by the collective agreement, agreements, local regulations.
Thus, the Labor Code does not stipulate the procedure for carrying out indexation in non-budgetary organizations.
However, there are several clarifications on this matter. For example, Letter of Rostrud dated April 19, 2010 No. 1073-6-1:
1) the current legislation does not establish the indexation procedure;
2) the legislator establishes only the employer’s obligation to carry out indexation;
3) if the local regulations of the organization do not provide for such a procedure, then, given that wage indexation is the responsibility of the employer, it is necessary to make appropriate changes (additions) to the local regulations in force in the organization.
Determination of the Constitutional Court of the Russian Federation dated June 17, 2010 No. 913-О-О:
Wage indexation is aimed at ensuring an increase in the level of real wages, its purchasing power and, by its legal nature, represents a state guarantee for the remuneration of workers, provided for in Art. 130 Labor Code of the Russian Federation. Paragraph 4 of this article includes “measures to ensure an increase in the level of real wages” in the system of state guarantees for employee remuneration. In addition, para. 7 tbsp. 2 of the Labor Code of the Russian Federation, as one of the principles of labor legislation, ensures the right of every employee to fair wages. Based on the analysis of Articles 2, 130 and 134 of the Labor Code of the Russian Federation, the Constitutional Court of the Russian Federation concludes that wage indexation should be provided to all persons working under an employment contract. Regulatory provisions that provide employers who do not receive budget funding with the right to independently establish the procedure for wage indexation provide them (unlike employers financed from the relevant budgets) with the opportunity to take into account the entire set of circumstances that are significant for both employees and the employer, and cannot be considered as vague and violative of their constitutional rights.
If the employer refuses to carry out indexation, you have the right to appeal to the State Labor Inspectorate or to court.
I draw your attention to the fact that you have the right to go to court to resolve an individual labor dispute within three months from the day you learned or should have learned about a violation of your right (Part 1 of Article 392 of the Labor Code of the Russian Federation).
This period cannot be restored.
From the Determination of the Constitutional Court dated June 17, 2010 No. 913-О-О:
“...wage indexation must be ensured for all persons working under an employment contract.”
Remember the phrase of the Black Queen from “Alice Through the Looking Glass”: “Well, here, you know, you have to run as fast as you can just to stay in the same place!”? It illustrates the situation with our salaries in conditions of inflation as accurately as possible: in order for salaries to remain at the same level and not depreciate, they must be regularly indexed.
However, in many companies, salary indexation is either not carried out at all, or is carried out so rarely that employees do not even remember the last time it happened. The question arises: are employers required to index wages and, if so, how often?
Salary indexation is one of the main state guarantees on employee remuneration Art. 130 Labor Code of the Russian Federation.
Two years ago, the Constitutional Court indicated that the employer is obliged to carry out indexation Determination of the Constitutional Court dated June 17, 2010 No. 913-О -О. This position is shared by Rostrud.
Deputy Head of the Federal Service for Labor and Employment
“An employer’s evasion of wage indexation due to rising consumer prices for goods and services may be regarded as a violation of labor legislation, in particular Art. 134 Labor Code of the Russian Federation. And for violation of labor legislation, administrative liability may be applied to the employer.”
Indexing- one of the ways to protect the population... from inflation, which consists in the fact that the state and other entities [for example, employers]... increase the cash incomes... of citizens in accordance with rising prices... Thus, purchasing power is maintained population and average real incomes of people.
Modern economic dictionary
This is all good, of course. But we do not have a single indexing mechanism. The Labor Code only states that indexation is carried out Art. 134 Labor Code of the Russian Federation:
If in the collective agreement or agreement there is a condition about indexing salaries, but it is not complied with, the labor inspectorate may fine you employer for 3000-5000 rubles. or issue a warning Art. 5.31, part 1 art. 23.12 Code of Administrative Offenses of the Russian Federation. Even citing the difficult financial situation of the company will not save you from liability.
It turns out that the indexation procedure (including its frequency) is entirely left to the discretion of the employer. And, taking advantage of this, unscrupulous employers may well stipulate in their local regulations that the organization carries out indexation... once every 20 years. And what? Is there order? Eat. How often indexing is carried out is a personal matter for the organization. The labor inspectorate will no longer be able to find fault with the employer, and the workers will be left with nothing...
It also happens that organizations simply include in employment contracts a phrase like: “If there are financial opportunities, the Employee’s salary Maybe indexed according to the orders (instructions) of the Employer.”
That is, it is prescribed right, and not the obligation of the employer to index the salaries of employees.
YAKOVLEV Robert Andreevich
Chief Researcher at the Institute of Labor and Social Insurance of the Russian Ministry of Labor
“ Since currently the Labor Code does not stipulate the mechanism for indexing wages, in essence it turns out that the decision to carry out indexation is left to employers. And most of them are not eager to do this.
Our businesses, especially small and medium-sized ones, will definitely not part with their money voluntarily. Meanwhile, when inflation in European countries was as high as ours, it was the law that obliged businessmen to increase the salaries of their employees!”
In turn, Rostrud believes that if the indexation procedure is not provided for in the local regulations of the organization, then they need to be supplemented with relevant provisions and Letter of Rostrud dated April 19, 2010 No. 1073-6-1.
At the same time, we were able to find a court decision that states that if the conditions and procedure for indexation are not stipulated by collective or labor agreements or local acts, then the employer is not obliged to index wages at all. Cassation ruling of the Perm Regional Court dated August 10, 2011 No. 33-8127. At the same time, the court did not take into account the position of Rostrud, saying that its letter was not a normative act.
The question arises: can a labor inspector who has come to inspect a worker’s complaint fine an employer who has not established an indexation procedure and, as a result, has not indexed wages for a long time? This is what the Rostrud specialist explained to us.
Head of the Legal Department of the Federal Service for Labor and Employment
“I believe that in this situation, the labor inspector has the right to issue an order to the employer obliging him to make appropriate changes (additions) to the local acts of the organization or to employment contracts within a certain period of time.
If the order is not fulfilled by the appointed date, then the head of the organization and the employing organization may be fined for failure to comply with the labor inspector’s order under Art. 5.27 Code of Administrative Offenses for violation of labor laws.”
It is possible that the labor inspectorate may also fine the company and its manager under Part 1 of Art. 19.5 of the Code of Administrative Offenses of the Russian Federation for failure to comply with an order within the prescribed period.
Then the first thing you need to do is decide on the procedure for carrying it out and enshrine it in a local regulatory act, for example, in the regulation on employee remuneration. Let's see what should be written in it.
Which payments are indexed and which are not. For example, you can index salaries, but not index bonuses in a fixed amount. Also, no one bothers the employer to set a threshold amount within which the employees’ income will be indexed in full. Here's how to phrase it:
2.2. The following employee payments are subject to indexation:
- salary within an amount not exceeding 20,000 rubles;
- tariff rates;
- piecework and time rates.
2.3 The following are not subject to indexation:
- part of the salary exceeding 20,000 rubles;
- additional payments, allowances, bonuses established in a fixed amount;
- earnings retained by dismissed employees for the period of employment.
A Rostrud specialist shared his opinion with us on what principle to adhere to when indexing additional payments, allowances and bonuses.
“I believe that the aforementioned payments, set as a percentage of the salary, do not need to be indexed, since after indexation they will be calculated from the already indexed salary. These same payments, established in a fixed amount, should ideally be indexed along with the tariff part of the salary (salary, tariff rate) so that there is no real reduction in the level of wages.
At the same time, employers not related to the public sector independently determine which components of wages to index.”
Rostrud
Indexing frequency. It can be done at least every month. But it is more convenient to do this less often: quarterly, once every six months or annually.
3.1. Employee income is indexed once every six months in accordance with the indexation coefficient.
How to calculate the indexation coefficient. The Labor Code links indexation to the increase in consumer prices for goods and services and Art. 134 Labor Code of the Russian Federation. But in the absence of a unified indexation procedure, the employer is free to choose his own benchmark for indexation. The Rostrud specialist also agrees with this.
“Based on the provisions of Art. 134 of the Labor Code of the Russian Federation, the employer has the opportunity to provide in the relevant acts any procedure for indexing wages. Thus, the indexation value can be determined, in particular:
- <или>based on the officially established consumer price index for Russia or the region based on the results of a certain period (for example, a quarter, half a year, a year);
- <или>the amount of inflation recorded in the annual federal law on the federal budget or the budget of the corresponding region see, for example, paragraph 1 of Art. 1 of the Law of the Kamchatka Territory of November 14, 2011 No. 676; clause 1 art. 1 of the Law of the Kabardino-Balkarian Republic of December 30, 2011 No. 129-RZ; clause 1 art. 1 of the Law of the Astrakhan Region dated December 1, 2011 No. 97/2011-OZ;
- <или>growth of the living wage of the working population (in Russia or in a specific region).”
Rostrud
Let's go over each of the listed indicators.
You will find all-Russian consumer price indices both by year and by month: Rosstat website→ Prices → Consumer prices Regional consumer price indices, both by year and by month, can be found on the websites of the territorial bodies of Rosstat. For example, indexes for Moscow can be found: Mosgorstat website→ Prices and tariffs → Operational information → Consumer prices1. Consumer price index is officially established both for the country as a whole and for a specific region. It is published monthly by Rosstat and its territorial bodies for the constituent entities of the Russian Federation, respectively. Thus, in 2011, the consumer price index in Russia amounted to 106.1%.
2. Projected inflation rate in the Russian Federation, provided for, for example, by the Law on the Federal Budget for 2012 - no higher than 6% clause 1 art. 1 of the Law of November 30, 2011 No. 371-FZ.
3. The cost of living determined for the Russian Federation as a whole by the Government quarterly on the basis of the consumer basket and Rosstat data, and for a specific region - in the manner prescribed by the relevant law of the subject of the Russian Federation pp. 1, 2 tbsp. 4 of the Law of October 24, 1997 No. 134-FZ.
You will find the cost of living in Russia and for a number of regions: section “Reference Information” of the ConsultantPlus systemSo, for example, increase in the cost of living working-age population for the first quarter of 2012 compared to the fourth quarter of 2011 amounted to:
Let us repeat: all of the above values are optional. In principle, for indexing wages, the employer can choose any other benchmark that takes into account the rising cost of living.
Actually indexing order. Here's how you can formulate it, linking indexation, for example, to the consumer price growth index for Russia as a whole:
3.2. The value of the indexation coefficient is calculated based on official data on the growth of the consumer price index in Russia for the previous half of the year.
3.3. The value of the indexation coefficient is calculated by the chief accountant at the end of the first month of the current half-year by multiplying the monthly consumer price growth indices for Russia for the previous half-year. In this case, official data from the Federal State Statistics Service on the level of inflation in Russia for the previous six months are used. The resulting coefficient is applied from January 1 and July 1.
When carrying out each indexation, it is advisable to issue an order signed by the manager, in which you need to indicate the specific value of the indexation coefficient and the date from which it applies. The order will be the basis for the accounting department to accrue wages to employees in an increased amount. Here is a sample of it.
Moscow
In order to ensure an increase in the level of real wages in accordance with Articles 130, 134 of the Labor Code of the Russian Federation and the Regulations on the indexation of income of employees of Azimut Trading Company LLC
I ORDER:
2. Senior accountant M.I. Osechkina to calculate wages taking into account indexation from July 1, 2012.
Control over the implementation of this order is assigned to the chief accountant N.S. Maslova.
I have read the order:
Is indexation of wages an increase and a change in the mandatory conditions of the employment contract on remuneration? Art. 57 Labor Code of the Russian Federation?
Rostrud believes that it is.
“ Indexation of wages entails a change in its size or the size of its components (salary, bonuses, additional payments). The terms of remuneration (including the size of the tariff rate or salary (official salary)) of the employee are mandatory terms of the employment contract and must be included in it Art. 57 Labor Code of the Russian Federation.
Thus, changes in wages are reflected in employment contracts with employees and Art. 72 Labor Code of the Russian Federation” .
Rostrud
But in order for the employer not to prepare a huge number of documents before each indexation, it is possible to stipulate in the employment contract with each employee that the employee’s salary is a salary taking into account indexation. And also indicate that salary indexation is carried out in accordance with the Regulations on the remuneration of employees of the organization.
4.3. The employee has a salary of 20,000 rubles, which is indexed once every six months in accordance with the Regulations on remuneration of Azimut Trading Company LLC dated 01.06.2005 No. 23-/06-11, with which the Employee was familiarized with before signing this labor contract agreement.
True, there is another point of view, according to which indexation of wages due to inflation is not an increase, because the real content of wages remains unchanged. In addition, the employer’s obligation to index employees’ wages in connection with rising consumer prices is expressly provided for in the Labor Code of the Russian Federation. However, if you agree with this approach, then the indexation of wages, in particular salaries, cannot be taken into account when calculating average earnings for paying for business trips, vacation pay, etc. clause 16 of the Regulations, approved. Government Decree No. 922 dated December 24, 2007
It is with regret that we have to state that currently the obligation to index is of a declarative nature. However, in our opinion, periodic salary indexation is beneficial to the employer, if only because it significantly increases the motivation and loyalty of employees. After all, by indexing wages, the employer demonstrates to employees that he cares about them.
The economic crisis has a negative impact on the well-being of the population. Wage indexation in 2019 will make it possible to at least slightly increase the real level of income of people working in the public sector. We are talking about municipal and government employees, whose managers, in accordance with the Labor Code of the Russian Federation, are required to carry out indexation. But is it necessary to index wages in 2019 in commercial organizations? Or should only budgetary organizations increase wages? Is indexation a right or an obligation of an employer? What is the latest news on this indexation for public sector employees? Let's figure it out.
The Labor Code contains norms that define possible and mandatory ways to improve people's living standards. Indexation of the minimum wage is one way.
If an employee works in a company that is not financed by the state budget, then it is still necessary to carry out indexation, but on the basis of the following documents:
Remember that ensuring indexation is the direct responsibility of the employer! Moreover, it should immediately affect all employees of the enterprise. Regulatory provisions on wage indexation provide for its mandatory implementation in organizations not only of the budgetary, but also of the extra-budgetary sphere. The difference lies only in some procedural points.
Private firms and individual entrepreneurs themselves determine how to carry out indexation. This gives business owners the opportunity to take into account the interests of not only their subordinates, but also their own benefits.
If they ignore the need for indexation, employers may face unpleasant consequences if labor inspectors come. By the way, further decisions of controllers may be different:
Note that the second point is controversial. And in case of disagreement with the fine, the employer can go to court. Current judicial practice shows that decisions in such a case can be made both in favor of the employer who applied and in favor of the inspectors.
If an organization has a provision on wage indexation, but the employer does not comply with it, then during an inspection the company may most likely be fined.
As noted by the Constitutional Court of the Russian Federation in Determination No. 2618-O dated November 19, 2015, the wages of all persons working under an employment contract must be indexed.
Wage indexation is a way to protect earnings from inflation due to rising consumer prices.
The amount of wage indexation in 2019 may correspond to:
Ensuring an increase in the level of real wages includes indexation of wages in connection with rising consumer prices for goods and services. State bodies, local government bodies, state and municipal institutions carry out wage indexation in the manner established by labor legislation and other regulatory legal acts containing labor law norms, other employers - in the manner established by the collective agreement, agreements, local regulations.
The mechanism for indexing workers' wages is determined taking into account the order of its establishment: for budget financing - centrally, for other employers - through collective agreement and locally (see commentary to Article 135 of the Labor Code of the Russian Federation).
1. The article has undergone only editorial changes. Its content has not changed.
An increase in the level of real wages in connection with rising consumer prices for goods and services should be guaranteed by securing at the federal level an appropriate legal mechanism for wage indexation.
In the Labor Code, such a mechanism is not enshrined, unlike the Labor Code of the Russian Federation (Article 81.1), which provided that the indexation of wages for employees of organizations is carried out in the manner established by the Law of the RSFSR “On the indexation of cash income and savings of citizens in the RSFSR.”
The Law of the RSFSR “On Indexation of Cash Income and Savings of Citizens in the RSFSR” of October 24, 1991 (Vedomosti of the Congress of People's Deputies of the RSFSR and the Supreme Soviet of the RSFSR. 1991. N 45. Art. 1488) defined indexation as a state-established mechanism for increasing cash income and savings citizens due to rising consumer prices. The purpose of indexation is to maintain the purchasing power of citizens' cash income and savings. The law also provided for the possibility of combining, and in some cases replacing, indexation with other methods of state regulation of household incomes (revision of wage levels, pensions, social benefits, etc.). The objects of indexation also included wages for employees of organizations, except for employees of enterprises that independently determine prices for the goods they produce and services they provide. The indexation threshold (i.e., the consumer price index from which the indexation of cash income and savings of citizens begins) was recognized as an index of 6%.
The law of October 24, 1991 provided for the following procedure for indexing wages, pensions, scholarships, and social benefits: the first part of income, equal to one and a half times the minimum monthly wage, was indexed to the full consumer price index; the second and subsequent parts of income, also equal to one and a half times the minimum wage, are 50% of the consumer price index. Income exceeding three times the minimum monthly wage was not subject to indexation. For persons living in regions and localities where regional coefficients for wages are applied in accordance with the established procedure, the amount of the minimum wage subject to indexation was determined taking into account these coefficients. This Law has been repealed, and a new indexation mechanism is not provided.
2. Since the Law of October 24, 1991 was not applied in practice, it was only until January 1, 2005 that another method of state regulation of the population’s income was used - in order to maintain their purchasing power, the level of minimum wages, pensions, and social benefits was periodically revised in a centralized manner. benefits.
3. The problem of wage indexation is particularly acute for public sector workers. The lag in the revision of the level of wages for their labor, on the one hand, and the incomplete consideration of the real consumer price growth index when making decisions on increasing the minimum wage, salaries (rates), on the other hand, clearly revealed a tendency for the level of wages in the public sector to sharply lag behind compared with the growth rate of average wages in industry and other non-budgetary areas.
Article 134 of the Labor Code of the Russian Federation provides that in organizations financed from the relevant budgets, wages are indexed in the manner established by labor legislation and other regulatory legal acts containing labor law norms. Since in this case the Law of the RSFSR “On Indexation of Cash Income and Savings of Citizens in the RSFSR” was repealed, obviously, this means the adoption of relevant laws and other regulatory legal acts. Until their adoption, there will be a gap in solving such an acute problem as wage indexation.
4. Indexation of wages in other organizations not financed from the budget is carried out in the manner established by the collective agreement, agreements or local regulations of the organization.
On the inclusion in the content of collective agreements and agreements of a mechanism for regulating wages taking into account rising prices and the level of inflation, see the comments to Art. 41, 45 Labor Code of the Russian Federation.
5. The provision for indexation of wages may also be provided for in the employment contract with the employee. This condition, like other terms of the employment contract, can be subsequently changed only by agreement of the parties and in writing (see).
6. Due to the fact that the Labor Code does not provide for a wage indexation mechanism, and the issue related to the resolution of relevant disputes is extremely relevant, it is important to turn to judicial practice.
The Supreme Court of the Russian Federation, summarizing the practice of courts considering civil cases on wage disputes, stated that an increase in the number of civil cases on wage disputes has been observed absolutely throughout Russia. Of particular interest in the practice of courts is the question of indexation of amounts of money when satisfying claims for the recovery of wages. In many cases, the requirement to index the amount recovered is contained in statements of claim. If such a requirement is not contained, then the court has the right to go beyond the requirements stated by the plaintiff, if it finds this necessary to protect his legitimate interests, and index the amount recovered on its own initiative.
When considering cases of this category, the courts were guided by Art. 81.1 of the Labor Code, according to which the indexation of wages for employees of organizations was to be carried out in the manner established by the Law of the RSFSR “On the indexation of cash income and savings of citizens in the RSFSR” dated October 24, 1991 (as amended on December 24, 1993).
In accordance with Art. 1 of this Law, indexation could be combined (and in some cases replaced) with other methods of state regulation of household incomes, in particular a revision of the level of wages. Based on this provision, the courts applied the index of growth of the minimum wage when satisfying the claim in cases where, during the period of delay in payment of wages, the minimum wage was increased centrally. If during this period the minimum wage did not change, the courts, when collecting timely unpaid wages, applied the consumer price index, determined in accordance with Art. 3 of the above Law.
Article 2 of the RSFSR Law “On Indexation of Cash Income and Savings of Citizens in the RSFSR” included among the objects of indexation the wages of employees of enterprises, institutions, and organizations, except for employees of enterprises who independently determine prices for the goods they produce and services they provide. When indexing the amounts of unpaid wages to employees of such enterprises, according to the Department for Generalization of Judicial Practice of the Supreme Court of the Russian Federation, it is apparently necessary to take into account the growth index of the minimum wage, since by virtue of Part 3 of Art. 37 of the Constitution of the Russian Federation, everyone has the right to remuneration for work not lower than the amount of remuneration established by federal law.
When satisfying claims for the recovery of unpaid wages on time, the courts also took into account the provisions on indexation of wages contained in collective agreements and agreements, since Art. 21, 13 of the Law of the Russian Federation “On Collective Bargains and Agreements” as amended on November 24, 1995 allow for the possibility of establishing a mechanism for regulating wages based on rising prices, inflation levels, fulfillment of indicators established in collective bargaining agreements and agreements, along with wage indexation carried out in a centralized manner.
The courts applied wage indexation, also provided for by industry agreements, when considering claims by employees of enterprises in certain industries: miners, power engineers.
The question arises: for what period should wage arrears be indexed? For the entire period, including the time from the date of issuance of the court order to collect wages until the actual payment by the defendant (see Review of judicial practice of the Supreme Court of the Russian Federation for the IV quarter of 1999 // Bulletin of the Supreme Court of the Russian Federation. 2000. N 7. P. 19).
In some cases, courts began to apply, when satisfying a claim for the recovery of wages not paid to an employee on time, along with the indexation of monetary amounts (based on an increase in the minimum wage or the consumer price growth index) and Art. 395 of the Civil Code of the Russian Federation, which provides for liability for failure to fulfill a monetary obligation. The Department for Generalizing Judicial Practice of the Supreme Court of the Russian Federation does not agree with this position of the courts, since relations between an employee and an employer regarding remuneration are labor relations and should be regulated by labor legislation (see Bulletin of the Supreme Court of the Russian Federation. 1997. No. 2. P. 22).
