A fairly vast territory of the Russian Federation is located in harsh climate conditions. Living and working in such an area is quite difficult. Hence, there are not so many people who want to work in the areas of the Far North. To stimulate citizens to connect their place of work and residence with this locality, the state has introduced a system of financial incentives since the days of the Soviet Union. Let's look at how the accrual of northern premiums in the areas of the Far North is currently being done. How much do the northerners pay? What conditions affect the amount of the premium?
What is the Far North?
Before proceeding directly to the topic of accruing northern allowances in the regions of the Far North, let us consider which territories belong, are equated to this locality.
It is worth noting that their list has changed recently - 6/12/2018. The list of such areas has been adjusted by the Government of the Russian Federation. The amendments affected the following areas:
- Tuva.
- Karelia.
- Buryatia.
- Komi.
- Transbaikal region.
- Yakutia.
- Khabarovsk region.
- Murmansk region.
- Perm region.
- Khanty-Mansi Autonomous Okrug.
- Amurskaya Oblast.
2018 Legislative Amendments
We list the most important legislative changes:
- The village of Yakutia was excluded from the list. Leninsky and N. Kuranakh (Aldan district), the cities of Tommot, Aldan and Neryungri. This is due to the fact that at present transport networks allow the import of fuel into these areas year-round.
- The territory of the Russian Federation is considered the Far North, if it is not connected year-round transport infrastructure with the "big land". Or roads are only available during certain seasons of the year.
- A new list was compiled to formulate a government support program: the early import of food, medicine, clothing, industrial products, as well as to regulate the prices of oil products.
- As for the accrual of northern allowances in the Far North, they were untouched. Also, the benefits relying on the northerners were not revised - additional leave, early retirement and others.
Legislative regulation
The accrual of northern allowances in the Far North is regulated by the Customs Code and Law No. 450-1. These regulations define that residents of northern regions who work in the same area have a legal right to charge a number of allowances to their wages.
The following employees are entitled to allowances under Russian law:
- Workers on a permanent job.
- Concurrently employed.
- Workers remotely (while in the Far North).
- Working on a watch.
The size of the allowance for work in the Far North depends primarily on the duration and length of service. The rules for calculating these material incentives were developed back in 1990. Initially, they were spelled out in the instructions of the Ministry of Labor of the RSFSR.
Governing Rules
Let us analyze the main rules for the formation of allowances for work in the Far North:
- The bonus will be accrued only on labor payments - this is the percentage of the employee's salary. It is important to remember that the calculations do not take into account the following: the northern coefficient, travel allowances, material assistance, vacation allowances and various single payments.
- The length of service for calculating the allowance is taken into account, without taking into account breaks in activities in another locality. We give an example. Man worked in the Far North for 3 years. Then he moved to another locality, worked there for 5 years. And he decided to return to the north again. With repeated employment in this case, his northern work experience will not start from scratch. When calculating the size of the allowance, the accountant must take into account those 3 years.
- The duty to accrue bonuses in the Far North is assigned to all employers in this area, without exception. The situation also applies to those employers who are legally located in a different area, but in fact their employees work in the Far North.
- The amount of the premium depends on two conditions: the length of service in the Far North and the severity of the climatic conditions of the working area.
- Starting to work in the Far North, a citizen automatically receives a bonus of 10% of his first salary. This financial incentive increases by 10% every six months until it reaches the maximum established for the region of its work. The next summer, the employee will receive a salary with this maximum allowance.
What is the highest salary supplement in each of the regions of the Far North? There are four groups for which their values are established. We consider them further in detail.
The first group of localities (up to 100%)
We will analyze in detail the size of premiums in the Far North. The largest maximum value here is 100% of the citizen’s salary. It is received by workers in the following areas:
- Koryak Autonomous Okrug.
- Chukotka Autonomous Okrug.
- Aleutsky district, located in the Kamchatka region.
- North Evenki region (Magadan region).
- Islands of the Arctic Ocean and adjacent seas (except those located in the White Sea).
The second group of localities (up to 80%)
The maximum northern allowance in the Far North regions of 80% of the salary of a worker is laid by workers in the following places:
- Evenk Autonomous Okrug.
- Yamal-Nenets Autonomous Okrug.
- Khabarovsk region.
- Saha.
- Kamchatka Krai.
- Komi.
- Vorkuta.
- Magadan Region.
Third group of localities (up to 50%)
A 50 percent allowance in the Far North (from the salary of a citizen) is calculated by workers in the following places:
- Republic of Karelia.
- Amurskaya Oblast.
- Komi.
- Arhangelsk region.
- Primorsky Krai.
- Khanty-Mansi Autonomous Okrug.
- Sakhalin region.
- Khabarovsk region.
- Tomsk region.
- Krasnoyarsk region.
- Chita region.
- Amurskaya Oblast.
- Buryatia.
- Irkutsk region.
Fourth group of localities (up to 30%)
30% is the highest allowance in the Far North of the last, fourth group of harsh climatic regions of the Russian Federation:
- Chita region.
- Buryatia.
- Irkutsk region.
- Komi Republic.
- Southern territories of the Far East.
- Republic of Tuva.
Bonuses for beginners
If we look at the recent past, we will see that even before 2005 there was a privilege for young specialists who began their careers in the Far North. Namely, for citizens under the age of 30 who have secondary or higher specialized education.
After 2005, the benefit was canceled. However, instead, the Government of the Russian Federation developed an accelerated bonus calculation algorithm for young specialists:
- Workers in the area belonging to the first and second groups begin their activity not with the standard 10 percent, but with a 20 percent increase in salary. Moreover, in the future it increases every six months, again not by 10%, but by 20%. Until 80% for the first group of localities and 60% for the second group of localities. The bonus reaches its maximum (100% and 80% for the 1st and 2nd groups, respectively) after a year of work of a young specialist in the Far North.
- Workers in the areas belonging to the third and fourth groups begin their activity with a standard 10 percent increase in salary. Moreover, it increases every six months by 10% until it reaches its maximum size. This is 50% for the 3rd group and 30% for the 4th group.
Benefits for the natives of the Far North
Speaking of wage increases in the Far North, we also pay attention to the letter of the Ministry of Social Development and Health of the Russian Federation No. 697-13 (2005). It noted that additional benefits are introduced for those citizens who were born and lived in the Far North for at least 5 years on December 31, 2004.
These citizens, getting a job in the regions of the Far North (or regions equivalent in law to them), are entitled to receive a full percentage of the salary bonus from the first day of their work. Provided that the labor contract was concluded after December 31, 2004. That is, for example, getting a job in the area of the 1st group, such a citizen already with the first salary receives a 100 percent increase in salary.
As for the young specialists (up to 30 years old) who began to build their careers in the Far North no later than December 31, 2004 and lived in this area for at least one year, they have every right to accrue the accelerated northern allowance indicated above. The reason for this: Decree No. 458 (1998) "On Compensation to Citizens Living in the Districts of the North".
Employee Benefits Over 30
We recall once again that the maximum polar allowance in the Far North (the first climatic group) is 100% of the worker’s salary.
Let us examine in detail in what order the allowance is calculated for citizens over 30 years of age who have found work in the regions of the Far North or equivalent regions.
- The first group of localities. The first 6 months. labor - a bonus of 10% of salary. For each subsequent six months, another 10% is added. Until the premium reaches its limit - 100%.
- The second group of localities. The first six months of work - 10% of the salary of the employee’s salary. For each subsequent six months of work - another 10%. Until then, until the premium reaches a maximum - 80%.
- The third group of localities. The first six months of work - 10% of the salary of the worker. For each next 6 months. work - another 10%. Up to the highest size - 50%.
- The fourth group of localities. In the first 6 months. labor - 10% increase in salary. For every next six months of work, it grows by another 10%. Accordingly, to achieve 30% of the salary.
Military allowances
In the Russian regions of the Far North, not only civilians work. Various military units are also located in these areas. Is there any allowance for the monetary allowance of military personnel?
The calculations and rules here are exactly the same as for civilians. The only thing is that the premium is calculated based not on the size of the salary, but on the basis of the monetary allowance. Its size depends on the following conditions:
- The amount of cash allowance (excluding district coefficients).
- Region of service.
- Duration of service.
And another important thing about premiums for service in the Far North. For young military personnel (under 30 years old) the same conditions for accelerated accrual of surcharges apply as for young civilian specialists.
District odds
Do not confuse the northern wage increases and such a measure of material incentives as the district coefficient. These are completely different concepts.
The district coefficient is also a measure of additional financial support for workers in the conditions of both the Far North and the regions legally equivalent to it. It was introduced by the state for the reason that the cost of food, household goods and other products for personal use in such areas is slightly higher than the average for the Russian Federation.
The value of the district coefficient, respectively, depends on the region of employment of the citizen. It is regulated by the labor legislation of the Russian Federation.
The maximum size of this ratio is 2. It is set for the following regions:
- Seas and islands of the Arctic Ocean (with the exception of the islands located in the White Sea).
- Republic of Sakha: in relation to enterprises and construction sites related to diamond mining. In particular, these are the Udachnaya and Aikhal deposits, as well as the Kular and Deputatsky mines.
- Separate areas of the Sakhalin region.
- Chukotka Autonomous Okrug.
- Aleutsky district (Kamchatka region).
The regional coefficient according to the legislation of the Russian Federation is charged on the following:
- Wage.
- Surcharges directly related to salary. For example, for the length of service.
- Salary-related allowances. For example, tariff, for academic degrees, classiness of a profession, skill and so on.
- Compensation for unhealthy and life-threatening working conditions.
- The so-called "thirteenth salary" (annual bonuses for conscientious work).
- Salary for seasonal and temporary workers.
- Disability payouts.
- Compensation for persons working part-time or part-time.
- Local minimum wage.
Moreover, district coefficients are not taken into account when calculating the following:
- The northern premiums mentioned above.
- Holiday Payments.
- One-time and temporary increases, bonuses and rewards.
Work and permanent residence in the Far North is complicated by the influence of harsh climatic conditions. Therefore, to stimulate workers in such areas, the Russian government introduced special northern allowances. You know now their size, order and conditions of accrual.