The nuances of payroll are useful not only to an accountant or HR specialist. First of all, such knowledge is necessary for the employees themselves. It is important to understand what the final amount is made up to protect your rights. The district coefficient is one of the surcharges that is guaranteed to the employee under the law.
Such a benefit is a wage condition applied by the employer. The district coefficient is valid if the employee works in severe climatic conditions. For many Russians living in a large country with different climatic zones, such assistance is especially relevant. The coefficient mentioned by us is primarily applied in areas of the
Far North. But there are other regions in which surcharge also applies. The main objective of this benefit is to increase wages.
Surcharge amount
The regional coefficient to the wages of those who work in manufacturing industries in the Far North, according to separate regulatory acts, is established for each region and the districts included in its composition. Depending on the working and living conditions, the coefficient can be from 1.5 to 2.
According to the Labor Code, companies have the right to apply coefficients that are determined at the federal or regional level, while fixing them in an employment contract, as well as various agreements. It is important to note that local authorities can set an additional regional coefficient, but not higher than established by federal law.
How are they charged?
This supplement is issued to the employee at the actual place of work, even if the employer is in another region. For example, when the main office is in the capital, and the employee works in a separate unit in the Far North.
The same applies to traveling work. For example, if an employee visits the Far North from time to time, then the district coefficient is calculated in proportion to the days that he spent on a business trip. In this case, the coefficient should be charged on the entire amount of the salary, taking into account all payments, bonuses and various rewards.
It is charged on compensation payments and benefits. These include such allowances:
for continuous work experience or title;
for length of service;
the so-called "annual" bonuses based on the results of work for a quarter or a year;
for access to state secrets in connection with work;
for work at night, combining several professions and positions.
But at the same time there is also a part of the salary, on which the coefficient is not charged. Namely:
material help;
various types of payments that are calculated according to the average amount of earnings (vacation pay, advanced training or employee training related to vocational training);
interest on wages for work in the Far North and the Far East, as well as in the south of Eastern Siberia;
incentive payments that are issued at a time and are not officially included in the remuneration system.
Many people are wondering if the capital of Russia is included in the list of subjects where the regional coefficient operates . Moscow is not equal in climate to the regions of the Far North; therefore, such a premium is not paid here.