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.
Reasons
In order for the increase in wages for certain employees to be justified, it is necessary to draw up some documents that will regulate adjustments in payment for work. In addition, it is necessary to provide the worker with a notice so that he can sign.
If, in addition to increasing wages, a worker needs to change his position, then he must act in accordance with Article 72.1 of the Labor Code of the Russian Federation.
There may be important reasons for increasing the salary, including inflation . To properly justify a salary increase, you need to rely on specific facts. These include:
- the employee became the owner of a higher education diploma;
- the employee has completed advanced training courses;
- the worker has received additional education;
- the employee has extensive work experience and experience;
- the worker’s responsibility for the work performed has increased;
- the size and quality of labor indicators has increased.
An example of justification for increasing wages for certain workers on a document may look like this (message from the commercial director to the general director): Due to the fact that sales volume has increased by 30%, as well as the quality of customer service, and so that these achievements are maintained at the appropriate level, I propose to increase the salaries of managers (six full-time units) by 4,000 rubles. from April 2021.
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.
Let's sum it up
- Changing an employee's salary upward is not a difficult task for a personnel officer or accountant: in this case, you only need to prepare a few documents.
- A salary reduction can only be made by agreement with the employee.
- At the initiative of the employer, the salary can be adjusted downward due to organizational or technological changes in the work. In this case, it is necessary to notify the employee 2 months before the start of payments of the reduced salary. In addition, you need to pay benefits for the period of employment.
- Salary reductions due to coronavirus are unacceptable.
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.
Is it possible to do without raising wages?
Before answering this question, let’s look at what we mean by a salary increase. So, the reasons for it could be:
- increase in the minimum wage - wages should be increased for employees whose payments for work are below the level provided for by law;
- mandatory indexation of wages - in connection with rising consumer prices (Article 134 of the Labor Code of the Russian Federation);
Ignoring this obligation is a reason for imposing fines on the violator under Art. 5.27 Code of Administrative Offences. Details are in the note “Salary indexation in 2021: how and by how much.”
- voluntary salary increase by decision of the manager. In this case, the employer has the right to increase salaries at his discretion, both for all employees/positions and selectively. As for the size of salaries, the legislation does not set any restrictions on voluntary salary increases.
Is it possible to make changes to the staffing schedule and draw up additional agreements to employment contracts if the organization has increased salaries? The answer to this question is in ConsultantPlus. If you don't have access to the system, get a free trial online.
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)
In what cases is a salary increase possible?
The salary of working citizens depends both on the personal achievements of each employee and on the general financial condition and capabilities of the employer.
Article 129 of the Labor Code of the Russian Federation notes options for increasing the salaries of citizens. The regulatory act contains information on the following methods:
- increase in tariff rate;
- increase in fixed salary;
- increase in allowances, bonuses, compensation payments.
How to properly ask for a salary increase from management?
The following factors may serve as grounds for increasing wages:
- increase in the minimum wage indicator. In accordance with Article 133 of the Labor Code of the Russian Federation, the income of an employee working full-time cannot be less than this amount. Consequently, with an increase in the minimum wage, the salaries of specialists who receive monthly less than the updated amount of the indicator should increase;
- Wage regulations or other similar regulations. The company's internal documentation must list the circumstances under which an employee can count on a salary increase. For example, if you achieve certain successes in your professional activities or improve your qualifications;
- change in production conditions - increase in the range of responsibilities, transfer to another position;
- agreement between both parties to the employment relationship. Both an employee and a manager can come up with an initiative to increase their salary.
We recommend reading:
→ memo about salary increase;
→ petition for an increase in wages.
It is allowed to increase the salary of one employee or several at once. When increasing the income of a particular employee, the management of the company must comply with the rules reflected in Article 132 of the Labor Code of the Russian Federation. In this case we are talking about the prohibition of discrimination.
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.
Methods for adjusting salaries
Let us recall that the components of wages are:
- tariff rate, salary;
- basic salary, basic salary rate.
Salary changes can occur in various ways.
- The first option is to adjust the above elements.
- The second possible option is the appointment or increase of compensation payments.
- The third is the same actions regarding incentive payments (bonuses, incentives).
The amount of labor costs associated with document flow depends on the choice of the method of change, as well as the number of employees to whom it concerns (all or part).
What is the difference between a salary increase and indexation?
A salary increase may apply to a specific group of employees, is solely the will of the employer and always has an individual numerical value. In other words, the head of the enterprise has the right, at his own discretion or based on the recommendations of the heads of structural divisions, to determine who, for what and by what amount to increase wages.
As for indexation, the situation here is somewhat different - the norm for it is prescribed in the legislation of the Russian Federation, i.e. every employer is obliged to carry it out.
During indexation, the salary portion is subject to increase, while the amount of the increase is always fixed and applies to all employees of the enterprise. The purpose of indexation is to change wages in order to ensure the purchasing power of workers at an acceptable level, since it is known that due to inflationary processes it has a steady downward trend.
Calculation of wage indexation: rules
Salary indexation for subordinates usually involves an increase in tariff rates and salaries for positions, with a certain amount. For the public sector, this means that the wage fund is increasing completely.
You can use the option with additional payments. But few employers resort to such solutions. It is important to determine in advance the amount by which the salary will increase.
What does remuneration for work consist of?
Article 129 of the Labor Code of the Russian Federation talks about the following components of compensation for labor for citizens:
- Incentive payments. Usually they are in the nature of incentives.
- Compensation transfers. We are talking about working with conditions that deviate from the norm. Compensations are often tied to difficult climatic conditions, radiation and similar circumstances.
- Labor remuneration depending on the positions held, the level of complexity of the work performed, and so on.
Employment contracts regulate remuneration for work; in many respects, the factor depends on the system used by the employer.
How to determine frequency?
The Labor Code does not provide precise instructions on the timing and coefficients for salary increases. But regular implementation of this procedure is mandatory for both commercial and budget organizations.
For commercial organizations, this issue is resolved at the commercial level. The honesty of the manager and the available amounts play the most important role. The coefficient helps determine the exact time of the procedure.
It should be taken into account that not every company is ready to enter into collective labor agreements. And if the document is drawn up, then indexation is not always considered the employer’s responsibility. There are several options to change the situation:
- Make changes everywhere, including any types of labor agreements, individual and collective, local acts of other types. A separate chapter is being created for this. Separately, they indicate that management is obliged to periodically increase salaries.
- Drawing up a separate local act, which will be called the Regulations. All employees familiarize themselves with this document against their personal signature.
