The likely abolition of the northern allowances today worries many Russians who have been living and working under the difficult conditions of their domestic northern cities for years. And only increased salaries and privileges allow them to continue to remain in such conditions. But if they are now canceled, there will be no additional incentive to stay in these cities.
Difficulty allowances
The news of the possible abolition of the northern allowances was taken by many very painfully. After all, people who live in the northern regions of Russia have to work and exist in difficult natural conditions. All this negatively affects health.
In addition, a significant distance from the center of Russia stimulates an increase in the cost of many goods and services. The difference compared with the central and southern regions of the country is significant. In order to somehow balance this situation, even under the Soviet Union, additional payments to wages were established for residents of the Far North, as well as territories and regions equated to it. These payments included a bonus for the so-called northern length of service in this area and the notorious district coefficient. Today, everyone is convinced that if the abolition of the northern allowances takes place, many residents may decide to change their place of permanent residence.
How to calculate the northern allowance?
Currently, the regular accrual of northern allowances is provided for by the Labor Code. As well as the law on state guarantees and compensations. Many even call it the law on northern allowances.
The more people work in the northern regions, the greater the salary bonus they receive. In this case, the maximum possible value is set.
This surcharge is charged only on salary. It does not apply to long service pay, material assistance, and individual monetary incentives. At the same time, the length of service is considered in total, it is not required that it be continuous. All employers, without exception, are obligated to charge the premium, including private entrepreneurs. However, this surcharge does not apply when working part-time.
The size of the northern allowances
The size of the northern allowances depends on the region in which the person decided to move. For example, in Chukotka, the Kamchatka Territory, as well as in parts of the Magadan Region and on the islands belonging to the Arctic Ocean, a 10% salary supplement is due six months after the start of work. After that, it increases every six months by another 10%, until it reaches the limit of 100%.
In other regions of the Far North, the surcharge is calculated according to the same rules, only after reaching the mark of 60%. After that, it increases by 10% for each year of work in this area. And its maximum size is limited to 80%.
In areas that are only equated to the Far North, a 10% surcharge can be obtained after a year of work. Then it rises by 10% for each subsequent year, until it reaches the limit of 50%.
This allowance also exists in some other regions, for example, in the south of the Far East. There its limit value is 30%. At the regional level, individual surcharges may be established at the expense of entities.
Payments for young professionals
Separately, incentive payments are provided for young professionals to attract them to work in these difficult conditions. For them, preferential rules for calculating premiums are established.
For example, until 2005, there was a norm in the law, according to which a bonus to an employee up to 30 years old was supposed from the first day of work. True, to obtain it required at least five years to live in the North. In 2005, it was canceled.
Currently, young employees have established an accelerated procedure for accruing benefits in comparison with other residents of the North. Six months after employment, they are entitled to a 20% bonus, and for each subsequent 20% is charged, until it reaches the 60% mark. After that, it increases by 20% once a year until it reaches the limit mark. Therefore, young employees are seriously concerned about the question of whether the North will remain without northern allowances.
Why do they want to remove the allowances?
The abolition of the northern allowances has been discussed in society since 2014. This topic has become relevant for two main reasons.
Firstly, the federal Ministry of Labor considered it necessary to review the northern coefficients and the methodology for their calculation. This is explained by the fact that payments were established back in Soviet times, since then they have not been revised.
In addition, it is believed that in the non-budgetary sphere, allowances became only an unnecessary burden on accounting, since initially the employer agrees with the employee about a certain salary, and then the accountant has to calculate the salary, allowance and increasing coefficient from this amount .
The Minister of Labor of the Russian Federation advocates the abolition of the northern allowances, even initiated the creation of a commission for a detailed study of this issue. So, the ministry’s plans today have a plan to change the accrual rules and the size of the premiums, but no concrete bill has yet been adopted to abolish the northern premiums.
Top Zone
Another factor that could lead to such changes was the discussion in the Russian government of draft laws on territories of priority development, the so-called TOR.
They are created in order to provide various benefits (tax, pension and insurance benefits) to enterprises that are residents of this zone. It is assumed that such a preferential regime will contribute to the development of the economy.
One of the components of this bill is the elimination of the northern allowances. True, in the final version of the bill, these provisions were not preserved, but nevertheless separate amendments were made to the Labor Code of the Russian Federation, a number of other key documents that directly related to the benefits provided to northerners.
The law on the creation of territories of priority development was signed by the President of Russia on the eve of the new 2015.
Accountancy burden
The desire to facilitate financial and business accounting, private companies explain in the first place the desire to eliminate the northern allowances. In 2014, such an initiative was also launched by the head of the Ministry of Labor, Maxim Topilin. He noted that in the regions a decent level of wages is being maintained.
Nevertheless, many fear that the abolition of the northern allowances will cause social tension. Topilin defended his position at a meeting of the General Council of the All-Russian Federation of Independent Trade Unions. At the same time, he noted that the bill on the abolition of the northern allowances is almost ready.
Union representatives opposed such changes. They noted the excitement in society, the frequent questions of residents about whether it is true that they cancel the northern allowances. After all, it is obvious that this initiative can lead to the elimination of regional ratios, lower social insurance rates . Residents of the northern regions may begin to feel socially vulnerable in these conditions.
Northern allowances and TOP
Will the "polar" and the northern allowances be canceled? Today, many northerners are asking this question. It is worth noting that when Topilin spoke of a practically finished bill on this initiative, he had in mind, first of all, the law on the creation of the ASEZ. But the latter has already been adopted, and the provisions on northern allowances have been removed from it. So now you should exhale with relief at least for a while.
Changes to the Labor Code
It is worth worrying only about the changes made to the Labor Code. One of the articles regulates the peculiarities of work in enterprises and organizations located in territories of advanced development. In particular, agreements between employees and employers may provide for the replacement of northern benefits and other payments with monetary compensation. Its size must be determined by the same agreement. Such a replacement is possible only with the written consent of the employee, while his salary should not remain below the subsistence level for this subject of the Russian Federation. It turns out that this norm can be adopted, but only with the consent of the employee. Therefore, a large-scale abolition of the northern allowances, at least for now, is not expected.
It should be emphasized that even this measure applies only to those who work in commercial enterprises, as well as for individual entrepreneurs. For state-owned companies and institutions, such a rule is not provided. Indeed, the law on territories of priority development will not apply to municipal and state organizations.