The high motivational component of work in private companies is provided by various methods of financial and intangible incentives (bonuses, bonuses, permits, personal discounts, etc.). Against this background, the public service, even having a certain special prestige, is still considered the most inconvenient for the development of the employee’s potential. To correct the system of material incentives in the public sector, the concept of a personal raising coefficient was developed. This is a method of rewarding employees for conscientious performance of duties, for an innovative approach to work or for combining jobs.
What is a personal boost coefficient (PPC)?
The Labor Code of the Russian Federation guarantees employees of budget enterprises the same working conditions and accrual of equal salaries to employees at the same level. But, such a point to some extent demotivates the staff, neutralize financial incentives to work efficiently and diligently.
In order to implement the possibility of financial incentives for employees for the quality performance of their duties, it was decided to develop a personal bonus system taking into account the increasing salary ratio. This increase in wages not only stimulates the growth of professional skill and quality of work, but also provides additional socio-economic protection.
In some cases, PPC is accrued to staff not only as a motivating component, but also as a reward for working in high intensity mode (working at night, on weekends, etc.).
The raising coefficient is a personal salary increase, which can be set for a certain period (month, quarter or year). The accrual of this personal allowance must be included in the clause of the employment contract with the employee and established in the regulations on remuneration of state-owned companies. This provision is developed in cooperation with the representative body of workers (trade union, etc.)
In what areas is accrual of PEP to employees common?
Increasing salary ratio is accrued mainly to employees of budgetary institutions. This type of incentive is intensively used in enterprises in the field of education and health care, and especially in military units of federal or local importance, for financial incentives for mid-level employees for high-quality work and additional duties (extra-curricular activities, additional lessons, night shifts).
But, state institutions in various fields can resort to accrual of PEP for employees: in state museums, libraries, foundations, scientific institutes.
What laws and regulations govern the appointment and abolition of CPD?
The approximate provision approved by order of the Ministry of Health and Social Development of the Russian Federation No. 463 n dated 08.28.2008 is a subordinate act that establishes the right of employers to calculate a personal increase coefficient for salaries.
Also, the nuances of the appointment of the PPK are stipulated in a number of articles of the Labor Code of the Russian Federation: Art. 72, Art. 57, Art. 135.
In turn, the calculation of the increasing coefficient does not contradict the requirements of Art. 22 of the Labor Code.
The size of the PPK is calculated for the employee in accordance with article 152 of the Labor Code.
In the field of education, the right of workers to PPC is also considered in Presidential Decree dated 05/04/2015 No. 597 “On measures for the implementation of social policy”.
Conditions for the application of PPC salary to employees
The personal coefficient for the position can be accrued to all employees who occupy positions providing for categorization within the same salary.
The salary apportionment committee is appointed as an employee to emphasize the level of their professional skills, the uniqueness of skills, the importance of the work performed, the degree of independence and professional experience in the company.
KPK for length of service is recommended to appoint employees who occupy a position, depending on the total number of years that they have worked in federal state bodies or their territorial divisions.
PPK size recommended by law
It is considered legitimate to establish the maximum personal increase coefficient for the employee's salary up to 2.0 units equal to the salary itself. A completely objective norm of the Regulation leaves the employer with the right to calculate the size of the increase for each specific employee within this range stipulated by law.
For employees of universities and premium research institutes, the maximum size of the faculty can be 3.0 in absolute size for specialists and senior professors.
Also, for the heads of organizations whose activities are directly dependent on state subsidies and revenues, it is strongly recommended that you refuse fixed rates of PPC for employees. Because budget financing is a very unstable income category, it can be cut, delayed, and sometimes canceled. And employers do not have the right to unilaterally change the size of the PPC, unless otherwise specified in the employment contract.
The state makes it possible for heads of state institutions to reward staff very generously, almost twice the salary (200% more), but the employer decides on the size of the coefficient for each employee based on the size of the wage fund.
What are the most widespread calculation schemes for industrial enterprises?
In the field of education and healthcare, it has been established that motivational payments, which include a raising coefficient, should be set as a percentage of salary. Given that these payments are calculated for the complexity of the work performed, seniority, the presence of the highest category, they are calculated by evaluating the employee according to these criteria based on the accepted points system.
In the case of the employee fulfilling the duties of a temporarily absent second employee without relieving himself of his duties, the surcharge shall be paid to him with the use of a raising coefficient as agreed by the parties in the annex to the employment contract.
Ratios for length of service is recommended to be assigned in this amount:
- If the length of service becomes from 1 to 3 years - the premium is 0.05% of the monthly salary;
- For length of service from 3 to 5 years - the premium is 0.2% of the monthly salary;
- With a length of service of more than 5 years - PPC becomes 0.3%
Objectively, for the period of vacation, sick leave, maternity leave or parental leave, there are no CPD for employee salaries. After the employee returns from vacation to labor duties, a new increase factor can be calculated for him only after the release of the new position of the employer.
The procedure for establishing an increase factor
If the head of a state organization intends or is obliged to establish a PPK for his employees, he needs to include in the General Meeting with the presence of a trade union organization a norm in which the rate increases for a number of employees is introduced, and each employee needs to sign an annex to the employment contract or a contract on the accrual of the PPK, its amount and period of validity.
Example of the order on accrual of PPC
It is also necessary for the head to issue an interdepartmental order on the calculation of a personal raising coefficient.
The order must be of the following form:
Name, address and details of state institution
ORDER
No. _______ on the calculation of a personal increase coefficient to the official salary from (the date of signing the order) in order to stimulate the work of the employee (or another reason: the acquisition of an increased category, combination of posts, etc.).
In accordance with article 135 of the Labor Code of the Russian Federation, accrue ___________________, ( F. I. O. of the employee) holding the post _________________ (full name of the post) personal increase coefficient to the official salary for the period from ___ _________ ____ to ___ "_________ ____ g. In the amount of ______.
Director: ______________________ (Signature, initials)
Chief Accountant: _________________ (Signature, initials)
The principles of accrual of PEP to employees for night and overtime hours
In situations where the employee performs labor duties at night, he is also entitled to a supplement for each hour of additional work. The calculation of the increasing coefficient recommended by the Labor Code is 20% of the hourly salary in the daytime. To calculate the size of the employee’s hourly salary, it is necessary to divide the amount of his monthly salary by the number of hours worked.
Also, an employee of state institutions is entitled to pay for work on weekends and holidays in the amount of at least one daily rate in excess of salary, if such completion does not exceed the size of the fixed monthly number of working hours. And, if work on weekends is carried out in excess of the monthly norm of labor time, then it is paid in the amount of not less than 200% of the daily salary.
In what cases can an employer cancel a payroll calculation?
Although PPC belongs to the category of incentive rather than obligatory payments, the employer still cannot unilaterally cancel the calculation of the personal coefficient for an employee if the order for assigning payments has not yet expired.
Since this category of payments does not belong to the list of direct and urgent expenses of the enterprise, the manager may include in the wage regulations a clause on the possibility of changing the size of the payroll plan, even if the validity period of the allowance has not yet expired. There must be a good reason for such a step, for example, cuts in government subsidies and funding.
In order to avoid potential conflicts with staff, the manager must also include in the Regulation a clause on the possibility of canceling the raising coefficient for an employee in case of non-compliance by the employee with the internal rules, labor discipline, delay, unfair performance of duties.
How does the Labor Code guarantee employees the right to retain PEP to their salary?
If the employer did not include a similar clause of the Regulation, and the possibility of canceling or cutting down the CPD was not stipulated in the employment contract with the employee at the time of signing this contract, then the employer has no legal right to cut the bonus to employees. This is contrary to Art. 72. The Labor Code. The size of wages is prescribed in the labor contract in the column “mandatory conditions” and it cannot be changed without agreement with the employee.
To prevent conflicts on the basis of cutbacks in premiums for employees in the CPD, the employer must take a responsible approach to drafting an employment contract. The size of the raising coefficient is impractical to register in a fixed form (rate), it is much more reasonable to indicate it as a percentage of the salary. If the employer, without good reason, intends to cut or cancel the employee’s CPD, this citizen has the full legal right to maintain his allowance and appeal against its cancellation in court.