Do Tomsk employers have to index the salary annually: explains the lawyer

Raising wages is an obligation of all employers, which is enshrined in Article 134 of the Labor Code of the Russian Federation. “According to this article, all employers are divided into two categories: state organizations, which include state bodies, local governments, as well as state and municipal institutions, and all others, that is, non-state and commercial organizations,” the lawyer explains. For such a group, the indexation procedure should be prescribed in a separate document. This document will only apply to a specific organization. “For example, it can be an order or an order from a state body that directs or controls this organization,” says Alexander Yuzhalin. In business, there are no special rules for indexing. In Russia, employers decide how to conduct it in their firms. This does not mean that indexing is not necessary. It is necessary that the salary of employees does not decrease due to the increase in prices for goods and services. “Wage indexation can be carried out in different ways. The Supreme Court of the Russian Federation states that the Labor Code does not contain strict requirements for the indexation mechanism. Therefore, employers who do not receive budget financing can independently choose how and when to index, how much to increase payments and which payments to index, explains the lawyer. Will the prize go for indexing? Often employers solve the issue of indexation with the help of bonuses. This is also allowed by law, if the company has such an indexing procedure. According to Article 134 of the LC, indexation is not the only method of ensuring an increase in the real content of wages. The employer can increase the level of salaries of employees in other ways, for example, regularly increase salaries or pay bonuses, says the expert. However, to avoid possible risks and disputes, it is better not only to increase salaries and pay bonuses, but also to clearly prescribe the procedure for indexation. This will allow in the future to refer to the established procedure for the indexation of wages in the organization. Otherwise, bonuses or salary increments may be found to be unrelated to the indexation procedure. Tell the boss... To conduct indexation, you need to determine how it will pass and set its size. For example, you can set a percentage of salary or a fixed amount by which the salary will be increased. The employer has the right to choose any convenient method and describe it in a local act or collective agreement. The law does not give the employer the right to decide whether to index wages or not. It is mandatory for all employees who work under employment contracts. “The Supreme Court explained that the employee has the right to increase the level of real wages regardless of the decision of the employer. Even if the relevant provisions are not prescribed in the local acts of the organization, the employer is still obliged to ensure this increase. It cannot deprive employees of the opportunity guaranteed by law to receive higher real wages and to evade the establishment of procedures for raising them. This increase should be ensured regardless of the established order in the organization, the lawyer said. If the employer does not conduct indexation, he may be prosecuted under part 1 of article 5.27 of the administrative code of the Russian Federation. The inspection body may oblige the employer to establish the procedure for indexation and conduct it in accordance with the law.

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