23.06.2019
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4 min.
To ensure a decent existence for citizens, the Government of the Russian Federation annually establishes a living wage. The monetary value includes the cost of necessary goods and services per person. Salaries, social benefits, pensions, scholarships directly depend on the cost of living. The ratio of indicators allows us to assess the level of economic development of the country.
What is the Living Wage
The living wage is the cost of the consumer basket, as well as deductions and payments that any citizen must make.
A consumer basket is a certain set of products (the most necessary) that are needed to maintain a normal standard of living for a citizen. Also included in the cost of the consumer basket are goods and services not related to food, the price of which is set in proportion to the cost of the minimum set of products.
The above payments and deductions include:
- communal payments;
- payment for accommodation;
- fare;
- minimum cultural needs, etc.
The very concept of PM has been used in the Russian Federation since January 1, 1998, as an indicator necessary for calculating the minimum wage (minimum wage), the amount of pensions and benefits.
Arbitrage practice
The court should be considered as the only authorized body to make a decision on which the company is liable to pay fines. It is worth pointing out that funds not paid to the citizen as wages may also be requested. The employee has the right to demand compensation for underpayment.
To file a claim, you will first need to collect all the acts that are aimed at confirming the position of an individual employee whose powers have been violated. The best option is to have pay slips in a person’s hands, which indicate the accrued amounts and how much money is withheld and on what basis.
Currently, there is quite an extensive practice of judicial authorities on this issue. Almost every time, proceedings in this instance end with the person winning. The company's management will not be able to write off their guilt in paying low wages due to the fact that there is not enough money.
Often, controversial situations occur regarding the procedure for calculating wages, taking into account the coefficients for northern areas. It is for this reason that the management of enterprises calculates the level of earnings in such a way that it is no less than the monthly minimum.
PM value
The cost of living is recalculated every 3 months. In this case, average data on rising prices for goods and services and inflationary fluctuations in the economy are used. In addition, the cost of living depends on the region of residence and its location.
The products included in the consumer basket are different for each category of citizens, therefore the cost of living is calculated for all categories:
- averaged data (per capita);
- able-bodied working population;
- pensioners;
- children.
For the second quarter of 2021, the following PM value was established in the Russian Federation (in rubles):
- working population – 12130;
- pensioners – 9236;
- children – 11004;
- per capita (average) – 11185.
Does salary depend on the cost of living?
The amount of wages is primarily tied to the minimum wage, but from May 1, 2019, the minimum wage and minimum wage are equal.
Moreover, when calculating the amount of wages, the following are taken into account:
- salary – payment for the main activity;
- compensation – provided if work takes place in difficult conditions or overtime;
- bonuses and other incentives.
The legislation of the Russian Federation clearly states that the amount of wages should not be less than the minimum wage, and, accordingly, from May 1, 2019, the minimum wage. However, it should be remembered that this rule only applies if the following conditions are met:
- the employee works officially and is the main employee;
- the required hours per day are fully worked out (8-hour working day)
- the employee has fully worked the entire pay period.
You also need to understand that the salary specified in the contract is taken into account, this means the amount before deduction of all taxes and fees.
An employee may receive wages below the minimum wage if he:
- works part-time;
- does not work the required 40 hours a week;
- took leave without pay or sick leave in the billing month;
- works in the organization not on a permanent basis, but on a piece-rate form of remuneration (payment is made according to the fact and quantity of work performed).
In such cases, no claims are made against the employer.
Establishing a minimum wage
The minimum wage is established for employees whose work meets the following criteria:
- five-day work week throughout the month;
- eight hour work day.
If the above conditions are met, the employer has the right to set a salary equal to the minimum wage. As a rule, this applies to low-skilled jobs (janitor, cleaner, loader, etc.). Not in all cases the employer must pay the minimum wage to the employee.
Please note! We list some legal cases in which it is permissible to pay a monthly salary below the minimum wage:
- part-time work or a special schedule, performance of job duties below the basic volumes established by law;
- full-time employment, but due to various circumstances the work is not for a full month (vacation, sick leave, etc.);
- income tax was withheld from the minimum wage.
There is an opinion that the minimum wage should be equal to the salary, and not the full salary. If you carefully study the Labor Code of the Russian Federation, then there are no such instructions in it. For this reason, the employer legally includes bonuses, additional payments, etc.
Watch the video. Minimum salary from January 1, 2019:
If the salary is less than the minimum wage
It often happens that a citizen does not fall into any of the above categories, but his salary is less than the minimum monthly wage. What to do then?
You need to prepare a complaint against the employer to the following authorities:
- trade union organization - protects the rights of workers, the employer may be asked to pay the difference;
- State Labor and Employment Inspectorate - upon receipt of a complaint, it is obliged to arrange an unscheduled inspection of the organization. If a violation is confirmed, it may suspend the company’s activities, impose a fine, or bring administrative or criminal liability;
- prosecutor's office - a complaint can be sent to this authority in various ways, even anonymously. They also check the employing organization and, if violations are detected, they should be held accountable;
- judicial authorities are a last resort, all evidence of underpayment is sent there, and the employer is held accountable. In this case, there are time limits for filing a complaint.
Also, the calculation and amount of remuneration in each organization is controlled by the tax authorities and the social insurance fund, since there may be a deliberate reduction in the amount of personal income tax, which each employer undertakes to pay to the treasury for each of its employees. They can also hold the employer accountable if this violation is detected.
Where to file a complaint about low wages
When a person receives earnings in an amount less than the fixed minimum wage, this indicates that he can turn to several authorities to protect his own interests. These include:
- trade union;
- Labour Inspectorate;
- prosecutor's office;
- judicial system.
If we talk about the labor inspection, then this is the first step where a person should go with a statement that he has a low salary. This organization aims to monitor compliance with the provisions of current legal acts. There are several ways to contact this authority. This includes visiting the inspection in person, sending it by mail or using the services of authorized persons.
In the latter case, you will need to issue a power of attorney. After receiving the application, authorized inspectors carry out verification activities and, if necessary, issue an order. This act indicates the need to eliminate violations of laws. In addition, additional measures are applied to guilty persons. They are expressed in the form of penalties.
When, after an inspection, the results remain unsatisfactory, a citizen has the right to complain to a higher authority or send an application to the prosecutor’s office. It is also permissible to go to court.
An important point is that labor inspectors can establish an obligation against an employer only if there is an appropriate decision from a judicial authority.
The prosecutor's office is vested with the authority to conduct inspections. In particular, they check how closely companies comply with labor laws. The appeal is completed during a personal visit to the specified authority. In addition, this can also be done when using the services of a post office or a trusted representative.
It is worth pointing out that prosecutors carry out surprise checks in this case. This involves not notifying the company about the upcoming visit. The result of such consideration of the application is the issuance of an order. The document states that the company is obliged to eliminate violations committed by it in the field of labor legislation. In some situations, the need to transfer material to the judicial system is determined.
Employer's liability
If the facts of violation are confirmed, the employer may be brought to administrative and criminal liability.
Administrative responsibility
It implies various penalties and even suspension of the organization’s activities for up to 3 months. Controlled by Part 4 of Art. 133 of the Labor Code of the Russian Federation and Art. 5.27 Code of Administrative Offenses of the Russian Federation.
Let's take a closer look:
- if a salary below the subsistence level was given to one or more employees, a fine of up to 5,000 rubles is imposed on the director or manager, and a fine of up to 50,000 rubles is imposed on the organization itself. The company's activities are suspended for up to 90 days;
- a repeated case of offense imposes a moratorium on the manager to hold a leadership position for up to 3 years;
- if the contract concluded with an employee specified a value exceeding the subsistence minimum, but this condition was not met, the fine for the manager will be 8,000 rubles;
- if the offense lasted 2 months or more, the manager is brought to criminal liability, provided that the violation was carried out for the manager’s selfish or personal motives.
Criminal liability
Criminal liability for this type of violation is controlled by Art. 145.1. Criminal Code of the Russian Federation. If a salary below the minimum wage was paid to employees for 2 months or more, and it is proven that this was due to the employer’s selfish and personal motives, the following types of punishment may be applied to the manager and the organization itself:
- arrest for up to 3 years;
- a fine from 100,000 to 500,000 rubles or in the amount of the salary or other income of the head of the organization for a period of up to 3 years with a moratorium on holding certain positions or the right to engage in certain activities for a period of up to 3 years, or imprisonment for a term of up to 3 years.
Where and how to complain about low wages?
If the wage is set below the minimum subsistence level (minimum wage), then the employee can file a complaint against the employer with the trade union, labor inspectorate, prosecutor's office or court.
Labour Inspectorate
The first regulatory body to which an employee should file a complaint about a small salary is the labor inspectorate. This body is precisely intended to monitor compliance with current labor legislation.
You can write the application directly to the inspectorate, submit it with your authorized representative, or use the mail. Upon application, the inspector must conduct an inspection of the company’s activities and, if necessary, issue an order to eliminate shortcomings. It is also within his competence to impose an administrative fine.
If the results of the inspection are unsatisfactory, you can complain to a higher inspection, or submit applications to the prosecutor's office or court.
Attention! It should be noted that the labor inspectorate cannot oblige the payment of funds - this can only be done as a result of legal proceedings.
Prosecutor's office
A body that has the right to receive complaints from employees regarding violations of labor laws and conduct inspections.
In order to fill out an application, you must contact the prosecutor's office in person and write it to the employee on duty, and also hand it over with your authorized representative who has a power of attorney, or send it by postal service.
Checks on complaints are carried out suddenly, without prior notification to the company. Based on the results, the employer may be given an order to eliminate violations, and in some cases, the inspection materials may be transferred to the judicial authorities.
Salary below the subsistence minimum legally
An employer can pay workers below the subsistence level and legally. This is not very easy to do, but it is possible. To do this, within 30 days after the publication of the minimum wage and the accession agreement for all organizations in the region in the official media, the employer sends a reasoned refusal to join the agreement to the executive authority. But it must indicate the period when wages will be paid in full.
