What is a time-bonus wage system?

In practice, organizations have developed various remuneration systems. One of them is time-based bonus, which is a remuneration for work based on actual time worked and bonus amounts based on the results of work performed. Wages are often tied to the minimum wage, which is the basis for calculations subject to the condition of not violating labor laws. The source of remuneration and bonuses is the wage fund.

Let's consider how calculations are made using this wage system.

Regulatory regulation of bonuses for employees

Section VI. The Labor Code of the Russian Federation is dedicated to wages

Part 3 art. 37 of the Constitution of the Russian Federation guarantees the right to remuneration of an employee without discrimination and not lower than the minimum wage

Local regulations regarding wage and bonus systems: Employment contract, Collective agreement, Regulations on wages, Regulations on bonuses, etc.

The size of the bonus can be set as a fixed amount or as a percentage of the rate (salary). The bonus is paid if the employee fulfills (or exceeds) the production task.

Deputy Director of the Department of Education and Human Resources of the Russian Ministry of Health Nina Kovyazina

For a full month - salary

With a time-based wage system, wages are calculated based on the salary. Salary is a fixed amount of remuneration for an employee for the performance of labor (official) duties of a certain complexity for a calendar month, excluding compensation, incentives and social payments (Article 129 of the Labor Code of the Russian Federation). The employer can set not a monthly salary, but an hourly rate, which is especially convenient for employees with a flexible schedule or part-time workers. We discussed the specifics of calculating earnings for hourly wages in a separate consultation.

Let's look at an example of calculating wages using a time-based wage system. The employee is given a salary of 80,000 rubles for a five-day working week. In September, the employee, with a standard working time of 22 working days, actually worked 20 days (he was on vacation at his own expense for 2 working days). Therefore, his salary for September based on his salary will be 72,727.27 (RUB 80,000 / 22 days * 20 days)

The basis for establishing a time-based bonus system

The employee receives wages and bonuses based on the following documents:

1. Labor Code of the Russian Federation
2. Employment contract
3. Collective agreement
4. Wage regulations
5. Regulations on bonuses
6. Report card
7. Staffing table or tariff schedule

At the same time, the provisions established by local acts may be changed based on the following characteristics:

• organizational or technological changes in working conditions
• reflection of these conditions in the additional agreement
• impossibility of maintaining the existing terms of the contract on the basis of their change

Important! The deterioration of the financial situation or the difficult economic situation are not grounds for making changes to the basic provisions of salary payment.

Specifics of this system

When a time system is in place, employees are paid for the hours (days) they actually work. The level of additional payments is related to the established salary (tariff rate). A more flexible approach seems to be one in which employees are additionally rewarded for reaching the level of agreed results, quantitative and/or qualitative.

This procedure takes into account not only the time worked, but also:

• volume of completed;
• how well it is done.

Minimum wage as a basis for determining wages

The minimum wage is used to regulate the amount of wages, which should be less than this indicator, provided that the employee has worked the full time limit and fulfilled the plan requirement.

The size of the minimum wage is reflected in Federal Law No. 82-FZ of June 19, 2000 and is necessarily indexed annually.

Art. 133 of the Labor Code of the Russian Federation establishes the minimum wage in force in the country.

If the cost of living for the 2nd quarter turns out to be lower, then the minimum wage remains at the amount established on January 1. The minimum wage for the constituent entities of the Russian Federation cannot be lower than the minimum wage. If its size for the constituent entities of the Russian Federation is not established, then the minimum wage is used. If a regional coefficient is established in the region, then the minimum wage increases by this percentage.

Regulations on remuneration and bonuses

1. General provisions.
2. The procedure for calculating the salaries of employees whose work is paid according to a time-bonus wage system (accounting department employees, housekeeping department employees, secretarial and technical employees).
3. The procedure for calculating the salaries of employees whose work is paid according to the commission system of remuneration (managers for working with customer orders).
4. The procedure for calculating the salaries of employees whose work is paid according to the commission-progressive wage system (sales department employees).
5. The procedure for calculating the salary of the head of the sales department, whose work is paid according to a mixed remuneration system, including elements of commission-progressive and time-based remuneration systems.
6. The procedure for calculating wages for employees whose work is paid according to a simple piece-rate wage system.
7. Mentoring bonus.
8. The procedure for calculating wages in abnormal working conditions.
9. Bonus based on work results for the year.

Chapter 1. General provisions

1.1. This Regulation on remuneration and bonuses (hereinafter referred to as the Regulation) applies to employees of _______________________________________________ (hereinafter referred to as the Organization).

(name of company)

1.2. These Regulations have been developed in accordance with the current labor and tax legislation of the Russian Federation, the charter and internal documents of the organization, and the collective agreement concluded between the organization and its employees.

1.3. These Regulations are aimed at increasing the motivation to work of the organization’s employees, ensuring the material interest of employees in improving the qualitative and quantitative results of work: fulfilling planned targets, reducing the cost of producing a unit of product (work, services), improving technological processes, creative and responsible attitude to work, manifestation of initiative, discipline, responsibility of employees.

1.4. The most important element of the system of material incentives for employees is the organization of wages.

The organization of wages is based on the following general principles:

— remuneration (including all bonus components) is carried out taking into account the differentiation of labor depending on the complexity and responsibility of the work performed, the level of general and special knowledge and skills of the employee, the significance of his profession (specialty), the position he occupies, the degree of independence and responsibility of the employee when fulfillment of assigned tasks,

- equal pay is made for equal work,

— any discrimination is prohibited in setting and changing wages and other conditions of remuneration.

The implementation of these principles is achieved by establishing clear criteria and rules for determining wages for workers, taking into account the qualifications of workers, complexity, quality and quantity of labor expended.

1.5. The conditions for remuneration of employees, including the size of the tariff rate or salary of the organization, are determined by the employment contract and the organization’s staffing table.

The monthly wage, including that of an unskilled employee of an organization who has worked his or her normal working hours, cannot be lower than the minimum wage established in the Russian Federation.

1.6. The organization uses the following remuneration systems:

— time-bonus,

- simple piecework,

- commission,

— commission-progressive.

1.7. With a time-bonus wage system

employees are paid for the time they actually worked, as well as bonuses. Thus, the amount of wages under a time-bonus wage system is determined by the formula:

1.11. With a commission-progressive wage system

the amount of wages is set as a percentage of the revenue that the organization receives as a result of the employee’s activities, but taking into account the increase in percentage when revenue grows above the norm established for the employee using the same formula that is used when calculating wages according to the commission system of remuneration.

1.12. The source of remuneration and bonuses for employees is the wage fund.

1.13. The salary of the organization’s employees includes (depending on the remuneration system established in relation to the position):

- salary (or rate),

- bonus payments (or commissions),

- bonuses for mentoring, for complexity, for tension, for secrecy of work,

— remuneration based on the results of work for the year;

- additional payments (allowances) provided for by labor legislation for special working conditions (harmful, dangerous, hard work and other special working conditions), as well as for working conditions deviating from normal (when performing work of various qualifications, combining professions, work outside normal duration of working hours, at night, weekends and non-working holidays and others);

— other incentive bonuses and additional payments of a compensatory nature provided for by the collective agreement and local regulations of the organization.

1.14. The amounts of the components of employees' wages for the month are determined on the basis of employee reports and submissions of heads of structural divisions and deputy heads of the organization

1.15. The employee clarifies all issues related to the calculation and amount of wages (including bonuses and allowances) with his immediate supervisor, and in his absence, with the personnel manager and deputy director, whose powers include supervision of employee wage issues. If it is impossible to resolve the employee’s issues with these persons, the employee has the right to contact the head of the organization.

1.16. Wages are paid to the organization's employees in cash at least every half month on the days stipulated by the collective agreement, internal labor regulations, and employment contracts.

If the payment day coincides with a weekend or non-working holiday, wages are paid on the eve of this day.

Wages are paid to the employee, as a rule, at the place where he performs work as a cashier of the organization or is transferred to the bank account specified by the employee in a written application, under the conditions determined by the collective agreement or employment contract.

Chapter 2.

The procedure for calculating wages of employees whose work is paid according to the time-bonus wage system

2.1. A time-based bonus wage system is established for employees occupying the following positions:

The amount of an employee’s salary under a time-bonus system consists of a salary in proportion to the time worked and bonuses and allowances.

2.2. The main indicators of employee bonuses are:

- profitability of the organization,

— the performance efficiency of the structural unit to which the employee belongs (and equally the performance efficiency of the employee himself in a specific area, if he does not belong to any of the structural units),

— quality of work performance, including effectiveness, efficiency, organization in the performance of job duties,

— compliance with labor discipline, proper performance of one’s job duties, compliance with deadlines for completing tasks,

— advanced training (courses, certifications, self-training),

- work experience in the organization,

— initiative in putting forward proposals and resolving issues to rationalize and improve the efficiency of the organization and its individual sections,

- business ethics,

- complexity of the work.

Taking into account these indicators, bonus coefficients are determined and the final bonus coefficient is calculated by adding them. Thus, the amount of an employee’s bonus is determined by multiplying the employee’s salary by the final bonus coefficient. The amount of wages is determined by adding the employee’s salary and bonus, as well as allowances and additional payments, if any.

The calculation of wages for employees whose work is paid according to the time-bonus wage system is determined using the following table.

Where:

The coefficient for the overall profitability of the organization for the month is established:

0.2 - when the organization receives a profit for the billing period from ____________ to _______________ rubles.

0.1 - when the organization receives a profit for the billing period from ____________ to _______________ rubles.

0 - if the organization receives a profit for the billing period of less than _______________ rubles.

The coefficients for the performance of a structural unit for a month are established:

0,2 — ___________________________________________________

0,1 — ___________________________________________________

0 — _____________________________________________________

Coefficients for efficiency and compliance with deadlines for completing tasks per month are established:

0,4 — ___________________________________________________

0,2 — ___________________________________________________

0 — _____________________________________________________

etc.

2.3. The amount of bonuses to employees for the month is determined on the basis of employee reports, received reports and memos, other documents and data that make it possible to characterize the employee’s work, by their immediate supervisors (heads of structural divisions, deputy directors) according to the vertical chain of command established in the organization and approved by the director and representations and deputy directors.

2.4 Bonuses are awarded for actual time worked. For the time during which the employee was absent from work due to illness, the bonus is not paid.

Employees who terminate their employment relationship before the end of the bonus period at the initiative of the employer for violation of labor discipline are not awarded a bonus for hours worked.

2.5. The following reasons (grounds) are established, in the presence of which the bonus is not accrued and is not paid to employees:

a) gross failure or improper performance by the employee of his duties, including:

- absenteeism,

- appearing at work in a state of alcohol, drug or other toxic intoxication,

- systematic lateness to work place,

— non-compliance with commercial and official secrets,

— disclosure of confidential information,

— gross violation by the employee of labor protection, industrial sanitation and fire safety requirements;

- committing guilty actions by an employee directly servicing monetary or commodity assets, if these actions give rise to a loss of confidence in him by the employer,

— failure to comply with the instructions of state bodies on time in cases where responsibility for their implementation lies with the employee;

b) gross untimely or poor-quality execution of the manager’s orders, organizational orders and other organizational and administrative documents;

c) failure to pass certification;

G)

2.6. The severity of the offense committed by the employee is determined on the recommendation of the immediate supervisor by the deputy head of the organization, whose powers include supervision of wage issues.

2.7. The bonus is not accrued for the billing period in which the grounds specified in clause 2.5 of these Regulations occurred.

2.8. Employees whose work is paid according to a time-bonus system are given bonuses: for complexity, for secrecy, for tension in the following amounts:

2.9…

Chapter 3.

The procedure for calculating the salaries of employees whose work is paid according to the commission system of remuneration

3.1. The commission system of remuneration is established for employees holding the following positions:

3.2. The amount of wages of employees holding positions specified in clause 3.1. is determined as follows.

First, the amount of remuneration of the employee is determined for:

- transactions concluded by him for the sale of goods of the organization to clients who independently contacted the organization for the purpose of purchasing these goods,

- transactions concluded by him for the provision of services to the organization to clients who independently contacted the organization in order to receive these services,

- transactions concluded by him to perform work by the organization for clients who independently contacted the organization to order these works.

The amount of remuneration of an employee for a concluded transaction is determined by multiplying the amount of revenue received from the transaction by the organization by the commission percentage assigned to the employee for this transaction.

The amount of the employee’s wages for the billing period is determined by adding up the amounts of the employee’s wages for all concluded transactions for which payment was received from clients for the billing period, as well as allowances and additional payments, if any.

3.3. The amounts of wages of employees whose work is paid according to the commission system of remuneration are determined on the basis of employee reports, contracts drawn up for transactions concluded by the employee, checklists for recording concluded transactions, documents confirming payment for transactions concluded by the employee and other documents and data that allow determining the number of transactions concluded by the employee and the amount of payment received for them.

The amounts of wages of employees whose work is paid on a commission system of remuneration are determined by their immediate supervisors and approved by the director of the organization.

3.4. The following commission percentages are established for transactions concluded by employees:

3.5. The employee’s activities in concluding a transaction include negotiations and meetings with the client, independent study by the employee of goods, services, and work of the organization, development of options and terms of the contract for the client. Taking into account this work, commission percentages for concluded transactions are established, therefore the employee’s work additionally described in this paragraph of the Regulations is not paid.

3.6…

Chapter 4.

The procedure for calculating wages of employees whose work is paid according to the commission-progressive wage system

4.1. A commission-progressive wage system is established for employees holding the following positions:

4.2. The wages of employees holding positions specified in clause 4.1. are determined as follows.

First, the amount of remuneration of the employee is determined for:

- the number of transactions concluded by him for the sale of goods of the organization to clients who independently contacted the organization for the purpose of purchasing these goods,

- the number of transactions concluded by him to provide the organization’s services to clients who independently contacted the organization in order to receive these services,

- the number of transactions concluded by him to perform work by the organization for clients who independently contacted the organization to order these works.

The amount of remuneration of an employee for a concluded transaction is determined by multiplying the amount of revenue received from the transaction by the organization by the commission percentage assigned to the employee for this transaction. In this case, the commission percentage is progressive, i.e. with an increase in the revenue received by the organization from each category of transactions concluded by the employee, the commission percentage increases.

The amount of the employee’s wages for the billing period is determined by adding up the amounts of the employee’s wages for all concluded transactions for which payment was received from clients for the billing period, as well as allowances and additional payments, if any.

4.4. The amounts of wages of employees whose work is paid according to the commission-progressive remuneration system are determined on the basis of employee reports, contracts drawn up for transactions concluded by the employee, control sheets for recording concluded transactions, documents confirming payment for transactions concluded by the employee and other documents and data, allowing to determine the number of transactions concluded by the employee and the amount of payment received for them.

The amounts of wages of employees whose work is paid according to the commission-progressive remuneration system are determined by their immediate supervisors and approved by the director of the organization.

4.5. The following commission percentages are established for transactions concluded by employees:

Where

Commission percentage No. 1 - a percentage of the amount of revenue received by the organization from each transaction concluded by the employee, provided that the total amount of revenue received by the organization from transactions of this category concluded by the employee is up to 120,000 (one hundred and twenty thousand) rubles inclusive,

Commission percentage No. 2 is a percentage of the amount of revenue received by the organization from each transaction concluded by the employee, provided that the total amount of revenue received by the organization from transactions of this category concluded by the employee ranges from 120,000 (one hundred twenty thousand) to 140,000 (one hundred and forty thousand) rubles inclusive,

Commission percentage No. 3 is a percentage of the amount of revenue received by the organization from each transaction concluded by the employee, provided that the total amount of revenue received by the organization from transactions of this category concluded by the employee is more than 140,000 (one hundred and forty thousand) rubles.

4.6. The employee’s activities in concluding a transaction include negotiations and meetings with the client, independent study by the employee of goods, services, and work of the organization, development of options and terms of the contract for the client. Taking into account this work, commission percentages for concluded transactions are established, therefore the employee’s work additionally described in this paragraph of the Regulations is not paid.

4.7…

Chapter 5.

The procedure for calculating the salary of the head of the sales department, whose work is paid according to a mixed remuneration system, including elements of commission-progressive and time-based remuneration systems

5.1. The procedure for calculating wages according to a mixed wage system, including elements of commission-progressive and time-based wage systems, is established for an employee holding the position of head of the sales department.

5.2. The salary of the head of the sales department is calculated by adding the amount of the salary established for him, his commission part of the salary, as well as allowances and additional payments, if any.

The commission portion of the salary of the head of the sales department is calculated by multiplying the amount of revenue received by the organization as a result of the activities of the sales department by the commission percentage. In this case, the commission percentage is progressive, i.e. with an increase in the revenue received by the organization from transactions concluded by department employees, the commission percentage increases.

The following commission percentages are established for the head of the sales department:

5.3. The amount of the salary of the head of the sales department is determined on the basis of his report, contracts drawn up for transactions concluded by employees of the sales department, checklists for recording concluded transactions, documents confirming payment for concluded transactions and other documents and data that allow determining the number of transactions concluded by employees of the sales department and the amount of payment received for them - in the commission part of the salary, and on the basis of the staffing table and the employment contract concluded with the head of the sales department - in the time-based part of the salary (salary).

The salary amount for the head of the sales department is determined by the deputy director for commerce and approved by the director of the organization.

5.4…

Chapter 6.

The procedure for calculating wages of workers whose work is paid according to a simple piece-rate wage system

6.1. A piece-rate wage system is established for employees occupying the following positions:

6.2. The amount of wages of employees holding positions specified in clause 6.1. is determined by multiplying the piece rate established by him per unit of manufactured products (services provided, work performed) by the number of units of manufactured products (services provided, work performed).

6.3. The amounts of wages of employees whose work is paid according to the piecework wage system are determined on the basis of employee reports, memos from their immediate supervisor and other documents and data that make it possible to determine the number of units of products manufactured by the employee (services provided, work performed).

The amounts of wages of employees whose work is paid according to the piecework wage system are determined by their immediate supervisors and approved by the director of the organization.

6.4. Piece rates are set:

Piece rates in the table for each position are calculated by dividing the employee’s hourly (daily) rate by the hourly (daily) production rate. The following established hourly (daily) rates and production standards were taken into account:

The monthly wage, including that of an unskilled employee of an organization who has fully worked the standard working hours and fulfilled the production standard, cannot be lower than the minimum wage established in the Russian Federation.

6.5…

Chapter 7. Mentoring bonus

7.1. The bonus for mentoring is established for the following purposes:

— replenishment of the workforce with young qualified personnel,

— successful and rapid development of professional knowledge and skills by newly hired employees,

— encouraging qualified experienced employees of the organization to mentor newly hired employees.

7.2. The bonus for mentoring is set at 5 to 10% of the accrued salary of the assigned employee for the pay period. The percentage amount is determined by the immediate supervisor of the employee-mentor in agreement with the mentor himself, depending on the volume and nature of the mentoring, and is approved by the director of the organization.

7.3…

Chapter 8.

The procedure for calculating wages under working conditions deviating from normal

8.1. Remuneration for workers engaged in heavy work, work with harmful, dangerous and other special working conditions is made at an increased rate compared to the tariff rates and salaries established for various types of work with normal working conditions, namely:

8.2. When performing work in other working conditions that deviate from normal (when performing work of various qualifications, combining professions, overtime work, night work, weekends and non-working holidays, etc.), the employee is paid the following:

8.3. When combining professions (positions), expanding service areas, increasing the volume of work, or performing the duties of a temporarily absent employee without release from work specified in the employment contract, the employee is paid additionally.

The amount of additional payment is established by agreement of the parties to the employment contract, taking into account the content and (or) volume of additional work.

8.4. In case of failure to comply with labor standards or failure to fulfill labor (official) duties through the fault of the employer, remuneration is made in an amount not lower than the average salary of the employee, calculated in proportion to the time actually worked.

In case of failure to comply with labor standards, failure to fulfill labor (official) duties for reasons beyond the control of the employer and employee, the employee retains at least two-thirds of the tariff rate, salary (official salary), calculated in proportion to the time actually worked.

In case of failure to comply with labor standards or failure to fulfill labor (official) duties due to the fault of the employee, payment of the standardized part of the salary is made in accordance with the volume of work performed.

8.5. Defects not caused by the employee are paid on an equal basis with suitable products. Complete defects caused by the employee are not subject to payment. Partial defects due to the fault of the employee are paid at reduced rates depending on the degree of suitability of the product.

8.6. Downtime caused by the employer is paid in the amount of at least two-thirds of the employee’s average salary.

Downtime due to reasons beyond the control of the employer and employee is paid in the amount of at least two-thirds of the tariff rate, salary (official salary), calculated in proportion to downtime.

Downtime caused by the employee is not paid.

The employee must inform his immediate supervisor or another representative of the employer about the beginning of downtime caused by equipment breakdown and other reasons that make it impossible for the employee to continue to perform his job functions.

8.7…

Chapter 9.

Bonus based on annual performance results

9.1. The bonus based on the results of work for the year is set at 3% of the average monthly earnings calculated for the year (if the employee works for less than a year, then the average monthly earnings are calculated based on the months that he works). The bonus for the year is calculated no later than January 10 and paid no later than January 15 of the year following the bonus.

Rules Reproduction of this material is not permitted

9.2…

Time-bonus wage system

When establishing this system, wages must be calculated in the same way as a simple time-based system and, in addition to it, the employee must be given a bonus.

The calculation for a simple time-based system is based on the type of rate or salary that is set for the employee:

• hourly
• daytime
• monthly salary

At the established hourly rate, the number of hours worked is paid:

Salary = Number of hours worked * Hourly rate

At the established hourly rate, the number of days worked is paid:

Salary = Number of days worked * Daily rate

With a set monthly salary, the salary is paid regardless of the number of working days in the month.

An employee who has not worked for a full month at the established monthly salary will receive a salary calculated according to the formula:

Salary = Employee salary * Number of days worked / Number of working days in a month

The size of the bonus at an enterprise can be set as a fixed amount or as a percentage. The condition for paying a bonus is that the employee fulfills or exceeds the production task.

What are the indicators for employee bonuses in 2021?

Using this system of calculating salaries for employees, the employer guarantees a salary/tariff share of the amount of money in an amount proportional to the amount spent on additional work.

At the same time, the second, bonus share of the salary completely depends on the efforts and efforts of the employee himself, which affect the quality of the work done. This part of the salary is not a mandatory payment, since its very availability depends on the conditions and requirements for bonus payments to employees established in the relevant documents of the employing organization.

Such conditions for receiving bonuses may include:

• overfulfillment by the employee of the work plan established by the employer;
• absence of complaints, as well as violations and complaints to superiors;
• achievement by an employee or group of employees (for example, a certain department or workshop) of an established quantitative indicator;
• compliance with established quality criteria for manufactured products.

It is worth noting that strict adherence to the regulated conditions must be carried out during a certain period established by the employer, the end of which subsequently serves as the result for remuneration payments. As a rule, a period of 30 days (calendar month) is used as such a period, but the legislator does not prohibit the employer from changing (reducing or, conversely, increasing) the duration of such a period !

At the same time, the occurrence of the established conditions is considered a mandatory basis for the start of accrual of the promised bonus, because this amount is part of the salary security. Thus, if the employer expresses his refusal to make the payments (bonuses) discussed above, the employee or group of employees has the right to seek appropriate legal assistance and receive their earned money!

An example of salary calculation for a time-based bonus system

The employee did not work for a full month

Alpha and Omega LLC has established a time-bonus wage system. Monthly salary of worker V.I. Biktimerova – 25,000 rubles. The bonus amount is 10% of the salary, calculated monthly, as established by the Regulations on Bonuses. From August 13 to August 26, 2021, Biktimerov was on vacation. 13 working days were worked in August.

Total working days in August 2021 – 23.

Biktimerov’s salary for August 2021 is calculated as follows:

25,000 rub. * 13 days / 22 days = 14772.73 rub.

Biktimerov Prize for August 2021:

25,000 rub. * 10% = 2500 rub.

2500 rub. * 13 days / 22 days = 1477.27 rub.

The calculation for August is:

RUB 14,772.73 + 1477.27 rub. = 16250.00 rub.

When is it appropriate to use time-bonus payment?

The time-bonus form of remuneration should not be considered as a universal one. There are certain conditions for its use, which are:

• the objective difficulty of implementing standardization;
• the difficulty of correlating labor indicators such as time worked and results.

Under such conditions, the introduction of bonuses for achieved results allows:

• increase labor productivity;
• clearly convey to each employee what increased productivity will bring him in the workplace;
• reduce lost working time;
• operate equipment more carefully.

Costs for monitoring employee activities are reduced. The simplicity and clarity of the proposed procedure encourages employees to work cohesively and effectively.

Example of payroll entries

The manufacturing enterprise produces food products (baked goods) and sells them to wholesale and retail customers. Salary accruals are reflected by the following entries:

Effective use of time wages

Of course, each employer is in a different situation and must select a payment system individually. However, in general terms, there are several moments when the time-based form will be most effective:

• increasing employee motivation;
• establishing work discipline in the organization;
• encouragement to improve qualifications;
• in the case of technical work for production purposes;
• if the organization uses a conveyor type of production;
• when what comes first is not the quantity of goods produced, but its quality.

In specific situations, you need to look at and evaluate effectiveness on an individual basis. At one enterprise this form of payroll will take root well, but at another it will break the system. There are many examples of time-based wages. Take any trade organizations involved in the sale of products. In almost all cases, wages depend on how many goods were sold. This allows you to stimulate employees and make profit for the company.

Responsibility for the employer for late payment of wages

Other payments upon application

The use of PPSOT does not exempt the employer from calculating allowances other than bonuses.

So, for example, when an employee carries out activities in areas with special climatic conditions, a regional coefficient should be applied.

Also, the bonuses provided for work at night (Article 154 of the Labor Code of the Russian Federation), on weekends (Article 153) and for overtime work (Article 152 of the Labor Code of the Russian Federation) must be paid in full.

So, PPSOT is established by the employer who wants to reward his employees for achieving certain performance indicators.

Calculating wages with this payment system is simple - you need to determine the salary based on the actual number of working days and add a bonus.

Error when generating local acts

Payments of incentive benefits, which include bonuses, are established by local regulations in accordance with the Labor Code of the Russian Federation. These local acts should not worsen the situation of workers under current legislation.

The local act should indicate:

• list of positions subject to bonuses
• bonus amounts
• frequency of bonuses
• payment terms
• methodology for calculating bonuses of each type
• grounds for bonuses
• conditions for reducing the amount of the premium or not paying it

Bonuses should be awarded based on the results of work, the achievement of indicators based on the results of assessing these indicators.

Bonus rules

The main thing is to clearly state all the rules related to bonuses. Documentary approval of these rules is an equally important aspect. Local documents must contain the following information:

• payment periods, types of transfers;
• a list of persons who are entitled to increased payments;
• indicators upon achievement of which additional payments become available to the employee.

Be sure to describe the reasons why premiums are reduced or even deprived of increased transfers. Separately indicate the procedure according to which an employee challenges decisions made when necessary.

The use of a time-based bonus system is associated with the following features:

1. If the calculation is carried out as a percentage, regional coefficients are taken into account.
2. A fixed amount involves payment in proportion to the time worked.
3. Salary, or actual earnings taking into account increases, is the main support when making calculations.
4. The basis for transferring bonuses can be the results of both an individual and the entire department.
5. The frequency allows the choice of different periods - a year or a quarter, a month, or other periods of time.
6. Payments must be regular in any case.

What the bonuses will be and when the payments will arrive depends on the efforts made to achieve the result. Management can choose different conditions on the basis of which results are determined:

• compliance of products and services with a certain level of quality;
• managers and clients do not complain about work;
• Not only are deadlines met, the schedule is ahead of schedule;
• sales reached planned levels;
• plan overfulfilment.

The subject of litigation most often are issues related to a reduction in the size of bonuses, or their absence. For example, when an employee commits disciplinary offenses, or the company fails to achieve certain financial indicators.

That’s why it’s so important to fully develop bonus terms from the very beginning. All employees are familiarized with local regulations under their personal signature.

The minimum wage is used if the salary is below this indicator. Although the employee fulfills all the conditions associated with working a particular time. No. 82 Federal Law of 2000 fully describes what such remuneration should be.

Answers to common questions

Question No. 1 : If the employer, through no fault of his own, did not pay wages to employees (revocation of the bank’s license). Could there be any consequences for the employer?

Answer : As a result of the revocation of the license, the bank cannot transfer funds to its clients. But the employer bears financial responsibility (Article 236 of the Labor Code of the Russian Federation), even though the employer is not to blame and he will have to pay compensation for each day of delay in payments at his own expense. The employee may also claim compensation for moral damages and may also have his work suspended. To avoid consequences, the employer needs to pay wages to employees from any means.

Question No. 2 : Can an employer deprive a bonus due to disciplinary action against an employee?

Answer : Not entitled, but the imposition of a disciplinary sanction provided for by law may be grounds for non-payment of bonuses (Part 1 of Article 192 of the Labor Code of the Russian Federation - for failure to fulfill duties). Thus, the employer can, by local act, prescribe the grounds for non-awarding a bonus, for example, bringing to disciplinary liability in the time period for which the bonus is paid.

Classification

As already noted, the time-based form of remuneration in its pure form is extremely rare. In most cases, its varieties are used, which are regulated by the Labor Code of our country.

The following types of this method of calculating wages are distinguished:

• simple;
• premium-time;
• time-based salary;
• piecework-time;
• time-normative.

Each of them has certain characteristics. To better understand how wages are calculated, you should consider all types separately.

Emerging nuances

The considered wage calculation system in Russia has numerous features that are extremely important to know about.

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To eliminate the possibility of numerous misunderstandings, it is advisable to familiarize yourself with them in more detail.

What does it include

In this case, you should pay attention to the fact that the remuneration includes several main parts, namely:

• standard time payment;
• bonus part of payments.

The standard form of time-based wages is calculated based on the employee’s fixed salary or wage scale and time worked.

In order to calculate wages and additional payments, the following conditions must be met:

At the same time, you need to remember that the right to receive the bonus part of the remuneration is established by the internal documentation of the organization.

Indicators for bonuses

Indicators can be of several varieties, in particular:

The first type of indicators for the studied form of payroll and accompanying bonus payments is rarely used.

This is largely due to the fact that in most cases it is used during the period of piecework incentives.

A separate group of incentive accruals is provided for:

• enterprise management;
• heads of structural units.

The efficiency of the production process in general directly depends on them.

At the same time, bonuses for the management of structural divisions and key management can be tied directly to the performance indicators of the entrusted workshops, departments, and so on.

One-time incentives may not depend on either quantitative or qualitative parameters.

Remunerations can be calculated due to the achievement of relevant work experience, advanced training, or even in connection with the fact of the occurrence of any personal event.

What is the formula used to calculate the amounts?

The calculation of the payments under consideration in the case of using time-based bonus wages during the company’s activities does not entail any complexity.

In this case, you should use the following formula for calculations:

From - pr = From + B

Calculation example

Let's look at the procedure for calculating detailed payments using a specific example. An employee of the company was assigned a monthly bonus amount of 40% of the fixed salary.

Video: how to calculate wages with a time-based wage system The basic salary is 20 thousand rubles. The employee was able to fully work out the calendar working month, and also fully fulfilled the indicators for saving energy resources, which made it possible to receive payment in accordance with the generated Order.

At the end of the calendar month, the employee was transferred:

For your information - 8 thousand is 40% of the basic salary.