The order to increase the salary refers to internal local documents of enterprises and organizations. It is drawn up in cases where the company’s management has decided to increase the wages of any of the employees in a permanent part and only on the condition that the enterprise has free financial resources to carry out this action.
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Reasons for a salary increase
The reasons for a salary increase can be very different:
- desire to bring wages in line with some economic indicators,
- encouraging any of the employees,
- an additional measure of motivation for new achievements, etc.
Salary increases and wage indexation should not be confused - these are two completely different phenomena.
The main difference is that the salary can be increased either for one of the employees or for a group of people by different amounts and at any time. Indexation occurs simultaneously for all employees of the organization and, as a result, wages increase by the same percentage for everyone.
Features of salary increases for all employees
A salary increase can concern one employee or a group of subordinates, or the entire team at once. The second is due to indexing.
In Art. 134 of the Labor Code of the Russian Federation establishes the employer’s obligation to carry out indexation once a year, which is associated with regular price changes and rising inflation.
In addition, the possibility of increasing salaries should be reflected in the clauses, as prescribed by the Labor Code of the Russian Federation. Instead of a collective agreement, you can also use local regulations (Regulations on bonuses or wages).
Some employers, who have the right to independently determine the frequency of such increases in remuneration, set a quarterly or semi-annual frequency. The head of the company also has the right to choose a specific date for the procedure. Most often, managers prefer to set the date for this process at the beginning of the current year.
The increase occurs simultaneously for all employees by a certain percentage or for some - by a specially calculated coefficient. The calculation of the second depends on many objective factors. The influence is exerted by the inflation rate, the minimum wage, the level of consumer prices, etc.
The organization must take into account the requirements of Art. 48 of the Labor Code of the Russian Federation, if it falls under the authority of an industry agreement and has not provided a written refusal to join the association of employers.
Who draws up the order
The order can be written by any employee of the enterprise whose job responsibilities include this function:
- legal adviser,
- secretary,
- personnel officer, etc.
Only one thing is important: this specialist must have the skills to draw up administrative documentation and knowledge of the Labor and Civil Legislation of the Russian Federation.
In addition, after drawing up the order must be submitted to the director of the organization for approval - without his signature it will not acquire legal force.
How and for how long to store a document
For the entire period of validity, the order for a salary increase must be stored together with other administrative documentation of the company in a place with limited access. Then, after its relevance is lost, the document should be transferred to the archive of the enterprise, where it must be kept for the period established by law or the internal regulations of the company, after which it can be disposed of.
Legal acts have recently established the obligation of business entities, when establishing the fact of inflation, to index the remuneration of employees with whom labor agreements have been signed. The procedure for its implementation should be established in local acts.
When implementing this salary increase, an order must be issued to index wages in 2021.
Sample order to increase salary
Today, there is no legally established unified form for an order for a salary increase, so representatives of enterprises and organizations can write it in any form or according to a template developed and approved in the company’s accounting policies. With all this, there is a number of information that must be written in the document:
- date, number and place of creation of the document,
- name of company,
- personal data of the employee whose salary is being increased: his position, full name (if we are talking about several people, then similar information must be entered about each of them),
- reason for the salary increase (usually written after the words “Due to...”),
- the amounts of the old and new salaries (in numbers and in words) - in order to reflect the fact of the increase and the difference between them and the date on which this event will occur.
The order should give instructions to the HR department specialist and the accountant to make appropriate changes to the documentation and calculations regarding them. In order for the order to be executed, the manager directly in the order appoints the persons responsible for its implementation, indicating their positions and full names.
We arrange salary increases competently
Before writing a note, you need to study the company’s local documents covering wage issues.
It is recommended to submit a memo, regardless of who its author is, directly to the manager or through the office of the enterprise. The secretary must register the document in the incoming documentation journal.
There is no unified form of the document, but it is still recommended to rely on the requirements of GOST R 7.0.97-2016, which regulates the general requirements for business documents. Before writing a note, you need to study the company’s local documents covering wage issues. If they provide for any allowances or bonuses, but are not paid, then after an official request from an employee, with reference to these internal documents, the management of the enterprise has no right to refuse.
The document consists of the following mandatory parts:
- Company name;
- position and full name recipient and author;
- document's name;
- the content part, with the rationale for the appeal and the direct request;
- list of attached documents, if available;
- date and signature of the author.
The document can be drawn up on a computer or by hand. The recipient of the note must then review and make their decision whether to reject or grant.
You should not expect a quick decision; the head of the enterprise can review such documents within 30 days. If a positive decision is made, then an order is issued by personnel service employees who receive a memo with the director’s resolution.
The order displays the amount of the increased salary, bonus or other payments, and the date the changes come into force. The order must be presented under the signature of the employee or several employees in relation to whom the administrative document is issued.
An example of a memo for a group of employees
A sample statement regarding an increase in income for employees of a separate structural unit may look like this:
To the head of the organization
(from) the head ...name of the structural unit, full name.
Service memo
Due to the increase in sales volumes over the last 2 months by 25%, I ask you to consider the possibility of increasing salaries for department managers...name...by 15%.
Current salary….rubles.
The proposed salary is... rubles.
Head of department, full name, signature, date.
The increased salary usually comes into effect from the new calendar month.
Example of registration for an individual employee
A sample memo from a manager regarding an increase in income for an individual employee can be drawn up as follows:
To the head of the company
(from) the head ...name of the structural unit, full name.
Service memo
FULL NAME. the position has been working since...date.. in the position...the specialist successfully completed the probationary period, has no disciplinary sanctions or reprimands, and has proven himself to be an efficient employee. In connection with the above, I ask you to increase your full name. position salary from ... rubles to ... rubles.
Signature and its transcript, date of compilation, position and full name.
How to place an order correctly
There are no restrictions both in the content of the document and in its design: it can be written by hand with a ballpoint or fountain pen, or printed on a computer. In this case, you can use the organization’s letterhead or an ordinary simple sheet of A4 or even A5 format. None of the above factors play a role in determining the legality of a document.
The only condition that must be observed is that the document must bear the signature of the head of the company or another employee authorized to endorse this type of paper.
In addition, the employees responsible for its execution and all persons mentioned in it must be familiar with the order. Their autographs will indicate that they have read and agree with the issued order.
There is no strict need to certify the completed form with a seal at this time, since since 2021 the law has exempted legal entities from the requirement to use stamps and seals in their work - the only exception is in those cases when this norm is enshrined in the internal regulatory documents of the company.
The order, as a rule, is drawn up in a single copy , but if necessary, you can create additional copies of it (for example, to transfer it to the personnel department and accounting department)
Advice for employers when increasing the salaries of subordinates
The most common mistake employers make is that a significant portion of them rely on personal motives. This means that wage increases depend more on the employee’s personal qualities and external factors than on his professional characteristics. Thus, it is inappropriate to leave the salary of the chief accountant at the same level if the salary of his deputy has been significantly increased.
It is not recommended to issue different orders for subordinates working in the same positions (accountants, managers, mechanics). It would be more expedient to pay additional funds in the form of a bonus.
Only certain issues of wage increases are regulated by law. There are no specific step-by-step instructions or recommendations for this procedure in codes or federal laws. The procedure presented above for registering a salary increase is the most common among managers and legally justified.
Thus, compliance with these rules will help the employer avoid conflicts with the labor inspectorate and litigation with subordinates, as well as competently arrange a salary increase at the enterprise. It is important to remember that when increasing wages, it is necessary to rely on the laws and the employee’s merits to the business entity, and not on personal evaluation criteria.
After drawing up the order
A properly drafted, signed and issued order becomes the basis for HR specialists to make changes to the current staffing table.
In addition to this, an additional labor agreement is concluded with all employees in respect of whom the document was issued, where a new salary is prescribed.
In addition, the order also serves as the basis for the enterprise’s accounting department to recalculate the wages of employees, starting from the date indicated in the director’s order.
WHAT IS PRIMARY: STAFF SCHEDULE OR EMPLOYMENT CONTRACT?
The hierarchy of these documents in the Labor Code of the Russian Federation (hereinafter referred to as the Labor Code of the Russian Federation) is not defined, so let’s turn to logic.
The staffing table is a local act that builds the structure of the organization, fixes the economically calculated number of staff units, the amount of salaries and allowances.
When drawing up an employment contract, it is from the staffing table that the salary amount is transferred to the contract, and not vice versa. Therefore, we can conclude that with any changes, including an increase in salaries, first the new salaries are calculated taking into account the capabilities of the organization, a staffing table is drawn up with these salaries, and only then the new salaries are agreed upon with the employees.
If the employee agrees with the new payment terms, an agreement to the employment contract is drawn up confirming this change. If you do not agree, the employer acts according to the algorithm prescribed in Art. 74 Labor Code of the Russian Federation.
Document storage order
The order by which the planned indexation of wages was carried out relates to orders for personnel, and also addresses issues of calculating wages for employees. In this regard, the storage period for such forms is set at 75 years.
Documents are usually filed in files in chronological order of compilation. Copies of the order may also be located along with the payroll documents.
After the end of the calendar year, the file is transferred to the organization’s archive, where the entire established period of time is stored. In case of termination of the company's activities (closing, liquidation, etc.)
d.) the files must be transferred to the state archive.
Upon completion of the established storage period, the manager may issue an order for the destruction of archival documents.
The procedure for increasing wages provided for by labor legislation requires the mandatory preparation of an order to increase the salaries of employees. And every HR specialist or manager should know how to arrange a salary increase for an employee or all team members.
A sample document can help in correctly drawing up an order for a salary increase.
Correct approval of salary payment terms
How to approve salary payment deadlines: documents
Deadlines for issuing wages can be set using the following documents:
- Employment agreements separately with each employee.
- Collective agreements.
- Inner order rules.
- There is no order in the above list, therefore you cannot rely on it when resolving these issues.
To set deadlines, it is enough to indicate specific dates in any of the above documents. It is recommended to use internal regulations when resolving this issue. This is a convenient solution for setting deadlines for the enterprise as a whole. This document is easier to adjust; the manager does not require additional approvals.
The main thing is to rely on current labor legislation.
An employment contract is convenient for situations where there are specific terms that differ from the whole enterprise. For example, if you need to set an indicator for individual employees. But changing a document is more difficult and takes longer than in other cases. This method of setting deadlines is practically not used.
Lack of a specific time for payroll may result in additional penalties for the employer. They can range from 1 to 50 thousand rubles.
Specific dates are chosen by the employer, at his own discretion. However, the result may be different for different departments. Such solutions are appropriate for enterprises with a large staff of subordinates. Cash flows become easier to distribute, and in one day there will not be such a serious load. Separate deadlines are also often set for management.
