How is the long-service bonus calculated in the public sector?

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Published: March 27, 2016

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The length of service bonus is due to all public sector employees: teachers, doctors, military, federal, and municipal officials.

Such an increase is calculated from the bare salary; if in the case of teachers and military personnel this is not much as a percentage of the salary, then in the case of the military and officials this increase can significantly increase your salary.

• Regulatory acts
• What determines the size of the allowance?
• Who is entitled to a seniority bonus?
• Examples of calculating allowances Example 1
• Example 2
• Example 3

Regulatory acts

The following list of documents regulates bonuses for length of service in various budget areas: from the central government and the military, to workers in the educational and medical industries.

Labor Code of the Russian Federation (Articles: 21, 135, 143 and others).

Also, this type of incentive bonuses is regulated by many regulations:

• by resolution of the Council of Ministers (No. 638);
• by order of the Ministry of Health of the Russian Federation (No. 377);
• Decree of the Government of the Russian Federation (No. 583);
• by decree of the President of the Russian Federation (No. 1532);
• federal law (No. 73-F3), etc.

Monetary allowances for military personnel

Materials paid to persons undergoing contractual service on a regular basis are divided into the following categories:

• official accrual - an amount the amount of which is directly dependent on the position of the citizen;
• accrual by rank - a transfer, the amount of which corresponds to the rank of a person;
• other payments and transfers.

The amount of these transfers constitutes the allowance (maintenance) of the person undergoing contract service. It is transferred to the serviceman monthly to his current account or issued in cash on purpose within the same time period.

Particular attention should be paid to the official salaries of military personnel. According to the regulatory framework of the Russian Federation, they must comply with several conditions:

• the amount of this payment should not be lower than transfers made to persons holding relevant positions in executive authorities;
• when the salaries of civil servants increase, the salaries of military personnel increase in the same proportion;
• the salary amount is established by the Russian Defense Ministry in compliance with the common basic standards of allowance for military personnel;
• for citizens performing contract military service in the ranks of the RF Armed Forces outside the borders of Russia, payments are made (in whole or in part) in the currency of the state to which the person is posted.

What determines the size of the allowance?

It is important to know that in each individual case, the length of service bonus is calculated individually.

Therefore, you should not hope that your colleague’s salary will be the same as yours, because the bonus itself depends on many factors, which will be discussed below.

This premium is always calculated as a percentage and depends on a number of factors, which we list below:

1. type of employment (military, Ministry of Internal Affairs, educational and medical institutions, etc.);
2. seniority;
3. length of service in a specific position;
4. the salary you received previously and what you are receiving now;
5. regional and district allowances (depending on the specific area);
6. allowances depending on the institution (set individually for a particular industry);
7. depending on the conditions specified in the labor and collective agreement;
8. depending on the specified payments in the regulations on incentives (bonuses) in a particular organization;
9. percentage by years of service:
   length of service up to three years – 10% of salary;
10. length of service from three to five years – 20% of salary;
11. service for more than five years – 30% of salary;

In the military sphere, the percentage of bonuses for years of service differs slightly from the civilian one:

• from two to five years – 10%;
• from five to ten years – 15%;
• from ten to fifteen years – 20%;
• from fifteen to twenty years – 25%;
• from twenty to twenty-five years – 30%;
• from twenty-five years and older – 40%.

The following allowances exist for civil government employees:

• from two to five years – 10%;
• from five to ten years – 15%;
• from ten to fifteen years – 20%;
• from fifteen years and more – 30%.

Also, depending on the position held, you can receive bonuses in the amount of 60% to 200% (maximum).

If a particular employee has access to state secrets , the premium can range from five percent (minimum) to seventy-five percent (maximum).

If a particular official is responsible for protecting state secrets, then he may receive an additional 20 percent bonus.

Criteria for receiving benefits

As a rule, almost the same criteria for assigning additional benefits for continuous work experience are established in all regions. In particular, the following is considered continuous:

• 25 years of work for men and 20 years for women;

• absence in the person’s work book of records of violation of labor duties and labor discipline;

• absence of entries in the work book indicating that the person was forcibly dismissed at the initiative of the employer;

• the break between dismissal from the previous place of work and placement in a new place is no more than 3–5 months;

• the presence of non-insurance periods in the total length of service, such as child care, military service, training, social work, etc.

The new legislation does not provide incentives for people who meet all of the listed requirements, but regional authorities decided to take this point into account and create a new type of benefits in their regions. The leaders of the Novosibirsk, Oryol, Tula and Samara regions were the first to announce this, but other regions quickly joined in, and continue to do so.

Who can receive a long service bonus?

The issuance of incentive payments to a certain category of employees is approved by the following acts:

• Regulatory act “On social guarantees for representatives of the Department of Internal Affairs of the Russian Federation” dated July 19, 2011 (in particular, its articles 7 and 8).
• Federal Law “On Civil Service” of July 28, 2004 (in particular, paragraph 2 of Article 54).
• By order of the Minister of Defense of December 30, 2001 No. 2700.
• Decree of the Government apparatus of Russia “On the terms of payments” No. 638.

Employees who are entitled to long service bonus:

• Budget and civil servants.
• Representatives of the Department of Internal Affairs.
• Military personnel.

The following can count on a salary increase due to incentive payments:

• Test pilots.
• People working in aviation.
• Medical workers.
• Employees of budgetary art institutions.
• Law enforcement officers.
• Astronauts.
• Fleet workers.
• Teachers.
• FSIN employees.

IMPORTANT! This list is established by the laws of the Russian Federation. The employer is obliged to comply with all regulations. Also, the possibility of paying a bonus for length of service to employees who are not mentioned in the law can be indicated in the local acts of the enterprise, if the manager has a need to stimulate his employees.

Who is entitled to a long service bonus according to the law?

The number of employees and employees who, by law, are entitled to additional payment for length of service include:

• judges;
• civil servants;
• military personnel - for this category of employees, the allowance increases from January 1, 2021;
• Ministry of Internal Affairs;
• teachers;
• health workers;
• employees of theaters, libraries, museums;
• other public sector employees.

This surcharge is set as a percentage. That is, a certain percentage of it is added to the salary established for the position. Moreover, the longer the work experience (length of service), the higher the percentage of the salary increase.

The percentage depends on the employee’s area of ​​work and the region where the workplace is located. Financing is provided from budget funds.

To correctly calculate the percentage increase, it is necessary to correctly calculate the length of service; for this, the entire length of service is summed up, even if there are long interruptions in the work of this area.

Who is entitled to an additional payment to the pension for length of service?

In some cases, pensioners can still receive a cash increase in their pension, directly or indirectly related to long work (insurance) experience:

1. If some periods taken into account in the length of service were not taken into account when calculating and assigning a pension. To a greater extent, this is true for pensioners who retired before 2015 under the old laws in force at that time, or if, at the time of registration of the pension, documents confirming the citizen’s labor activity for certain periods of his work were not submitted to the Pension Fund.
2. If a citizen still continues to work after retirement. In this case, from August 1, an annual automatic recalculation of pensions for working pensioners is carried out in accordance with the insurance contributions paid for the previous year.
3. When assigning the title “Veteran of Labor” to a pensioner. Now this title and the corresponding additional payments are assigned not by the Pension Fund of Russia, but at the regional level - by the social protection authorities at the place of residence.
4. From January 1, 2021, the Pension Fund began paying a bonus to pensioners for more than 30 years of experience in agriculture. Only unemployed citizens living in rural areas will receive this additional payment.

In addition to the list listed above, the law does not provide for any special increases for long service (more than 30, 35, 40, etc. years).

How to set a salary bonus for commercial companies

The allowance in this case will be one of the types of incentive payments, the amount of which the organization has the right to establish independently by stipulating it in one of the local acts or agreements.

The additional payment can be registered in:

• collective agreement;
• regulations on bonuses or wages;
• agreement signed with a specific employee.
• other LNA.

In such cases, the employer pays the bonus himself; no one reimburses him for expenses. In this case, these payments can be included in the total amount of labor costs and taken into account when calculating profit tax.

It is important to understand that no one obliges the employer to set a premium; he does it on his own initiative, in an amount that he considers justified. It is also important to understand that if such an additional payment is provided, the employer is obliged to pay it to employees; he has no right to refuse the bonus.

A bonus for length of service (duration of work in a commercial organization) is usually set as a percentage of the salary (excluding other bonuses and incentive payments) taking into account the time worked per month. Its payment is made for all periods of employment in the company, including periods of vacation, business trip, sick leave, etc.

In practice, companies vary the bonus percentage in the range from 5 to 30% depending on the number of years worked (seniority). Payments are made monthly, usually along with wages. It is possible to set a different payment frequency.

Personal income tax and insurance premiums from the allowance

Additional payment for length of service is subject to mandatory income tax with the tax amount being withheld from the amount of the additional payment and the subsequent transfer of this amount to the budget.

The employee receives additional payments minus personal income tax. That is, the same calculation rules apply as for standard wages and salaries.

Personal income tax must be paid no later than the next day after the date of issue of the allowance.

As for insurance premiums, there are also no differences from the usual wage payments. All required insurance contributions - pension, medical, social - with a total percentage of 30% are added to the long-service bonus. This percentage is paid to the Federal Tax Service monthly until the 15th of the previous month.

In addition, social security contributions for injuries are paid to the Social Insurance Fund, the percentage of which depends on the employee’s position and working conditions. The standard interest rate for this insurance premium is 0.2%.

Who is entitled to a seniority bonus?

Every public sector employee has the right to receive a seniority bonus.
True, this type of premium is calculated individually based on the factors that we listed above. Such allowances are also available to employees not only of the budget and government sectors, but also of the military, employees of the Ministry of Internal Affairs, as well as those who are officially employed. In the latter case, this type of allowance is usually smaller in percentage terms, because the salaries of employees in private areas are often higher than those of employees in public sectors.

Who has special work experience?

This concept arose only a couple of years ago, but now every employee should know whether he has special experience and what it includes. After all, his future—pension payments—depends on it.

Special work experience is a special type with which some workers are paid for work in certain professions and areas. There may be several reasons for this:

1. Working conditions negatively affect human health and can cause irreparable harm.
2. Work in the Far North and territories equivalent to it.
3. Military contract and public service.

Having a special length of service ensures early retirement or long-service payment.

Workers in the following professions have this experience:

• Medical workers.
• Firefighters.
• Workers in the field of cultural education.
• Contract military personnel.
• Civil servants.
• Public transport drivers.
• Teaching staff.
• Miners and other workers associated with similar activities.

This article focuses on one category from this list, namely, teachers. There is a separate type of experience for this area.

Teaching experience is a special work experience that is established to determine the remuneration of teaching staff. Many people in this area are interested in how a pension is issued on its basis. They also want to know under what conditions preferential teaching experience is taken into account.

Examples of calculating allowances

Example 1

An employee teaches Russian in grades five to eleven in a comprehensive school in one of the Russian villages. His normal teaching load is twenty-two hours a week. This teacher is assigned his own class, where he is the class teacher. Twenty-two hours are also spent checking students' notebooks. Previously, before the innovations, this teacher had the tenth category in the ETS. The teacher has worked in the educational field for more than 5 years, but less than eight. The salary for this position of this teacher is 3,278 rubles.

This person also receives a 25% bonus for working in the village: 3278 x 1.25 = 4097.5

We calculate the fee for hours worked: (4097.5x22)/18=5008.1

Additional payment for class management – ​​20%: 4097.5x0.2=819.5

Additional payment for checking notebooks (22 hours) – 15%: (4097.5x0.15)x22/18=751.2

Based on teaching experience, another 20% of the net salary is accrued, 3,278%20 = 655 rubles. 6,578 + 655 = 7,233 rubles - a full salary.

Example 2

A man works as a mathematics teacher from grades five to eleven in a secondary school-gymnasium in a rural area. His teaching load: fifteen hours a week. This person has the title “Honored Teacher”, and also has the highest qualification category. His responsibilities also include managing the office. It takes five hours a week to check notebooks. The salary based on his position is 3,589 rubles. This man has been working in the educational sector for 7 years (20% bonus).

3589x1.255x1.08x(1+0.25+0.25)=6810.3 rubles

According to this formula, 1.255 is an increasing coefficient for the category of his qualifications. 1.08 – for the title. 0.25 – bonus for working in the village. 0.15 – salary increase coefficient for the specifics of the work.

Based on all of the above, his salary will be equal to 6810.3 rubles. We calculate the bonus based on length of service: 3589%20=717 rubles. 6810+717=7527 rubles.

Example 3

A woman works as a teacher in preschool education. Has an allowance for working in rural areas. This teacher also has the highest qualification category. Her bet is 1.5.

The salary for her position is 3,589 rubles.

Based on the formulas described above, we have the following 3589×1.255×1.25 = 5630 rubles.

1.255 is an increasing coefficient due to the teacher having the highest category. 1.25 – allowance for work in rural areas. We add the profit for the hours actually worked, we have 8,445 rubles - a full salary.

3589%20=717 rubles – long service bonus. 8445+717=9162 rubles, full salary.

When is the surcharge made?

To understand what a premium is, you need to study and understand under what conditions and in what amount it can be assigned.

Payment for length of service was introduced to further stimulate employees who have distinguished themselves in a good way. Another goal of introducing such a payment is to reduce staff turnover.

Employees who have worked in one position for many years and have extensive experience receive a larger amount of money for the performance of their duties, compared to those who have started work recently . At the same time, labor productivity and qualifications of workers may be the same.

Then the bonus for work experience in this particular organization will be distributed as discussed above.

The amount of the bonus is not related to the basic salary, it is accrued regardless of its value and only from the moment when length of service reaches a certain value (1 year). If a person has worked for less than 12 months in a certain field, then he is not entitled to additional payments.

Example 4

The employee is engaged in educational work in a special correctional orphanage. Rate – 1. Previously, this person had rank 10 in the ETS. Worked in the field of educational institutions for 3 years (10%).

Salary based on position – 3,278 rubles.

Rate + specifics of work 3278x(1+0.2+0.2) = 4589 rub.

0.2 – bonus for working in an orphanage. 0.2 – bonus for working in a special institution.

4589%10=458.9 – bonus for teaching experience. 4589+458=5047.9 rubles final salary.

Example 5

A person works as a teacher of his native language in one of the republics of the Russian Federation. He teaches first through fourth grades at a comprehensive boarding school.

His teaching load is 24 hours a week. Qualification: first category. This employee is assigned a class, and accordingly he has a bonus for class management. Twenty-four hours a week are spent checking notebooks. The teacher has 2 years of teaching experience (10%).

Net salary – 3,589 rubles.

Then 3589×1.168×1.15 = 4820.7.

Where 1.168 is an increase in salary for the first category. 1.15 additional payment for the specifics of the work.

We calculate the bonus for the hours actually worked (4820.7×24 hours)/20 hours. = 5784.8.

This person receives 15% for class management (4820.7 × 0.15 = 723.1 rubles).

We calculate the extra charge for checking notebooks (4820.7×0.15)x24h./20h. = 867.7 rub.

3589%10=358.9 rubles – bonus for teaching experience. And that’s 5784.8 + 723.1 + 867.7 + 358.9 = 7734.5 – the final salary with all allowances.

Continuous experience

Article 136. procedure, place and terms of payment of wages

Over the past decade, this term does not officially exist in the Russian Federation, however, it can very often be heard from the administration of many institutions.

Previously, this concept meant the time that a person worked without breaks, and the duration between different positions did not exceed a certain time. All deadlines were prescribed by law and were of utmost importance when setting wages and calculating old-age pensions.

In 2006, this document, namely Decree of the USSR Ministers of April 13, 1973 No. 252, was canceled. Since then, there is no such concept, but in some professions continuity of experience still matters.

Now this indicator does not affect the amount of wages, sick leave and other payments, but can be taken into account when receiving various benefits. The period of service is interrupted if the employment contract expires.

As for teachers, this rule does not apply to them. That is, if a teacher quits one educational institution, but starts working in another, continuity of experience is maintained. The same applies to medical workers.

The continuity of total work experience is not affected by:

• maternity leave;
• compulsory military service and military training;
• training in secondary and higher educational institutions (with scholarship);
• official temporary disability;
• performance of government duties;
• official unemployment (this means that a person must be on the stock exchange and receive a special benefit).

Continuous teaching experience is the sum of a teacher’s work activity in all state, municipal, and non-state educational institutions.

When changing jobs, the period of unemployment should not exceed a certain period:

• 1 month;
• 2 months for workers of the Far North (and other equivalent areas);
• 3 months (if the reason for dismissal was the reorganization of the educational institution or staff reduction);
• determination of disability (also 3 months);
• transfer of a spouse for work to another location;
• moving to another place (if there is a referral from the employment center).

Not every teacher knows that they can apply for a long leave of up to one year. Its receipt is also influenced by continuous teaching experience. You can get such leave at any time of the year, provided that this does not interfere with the work of the institution. At the same time, the teacher retains his position and working hours (load). It is also impossible to fire such an employee.

What documents are needed for registration?

Starting from the first working day, the assignment to work is indicated in the work book.

Then, with each working day, the length of service increases. Depending on the number of years worked in the public sector, you receive a corresponding bonus; we wrote above about what percentage and for how many years you can receive.

Based on the above, all the documents necessary for calculating your length of service are already present in the accounting department or at your place of work. This means that all the necessary calculations will be carried out by accountants themselves.

How to calculate average daily earnings - this information will be useful to every employee. When is it profitable to use a bonus payment system? All detailed information on this issue is here.

Do you think you deserve higher pay? Then quickly write a memo to your boss. You will find a sample in this article.

Bonus to civil servants for performing special tasks

The procedure for assigning and paying bonuses for the performance of particularly important and complex tasks by a civil servant is determined on the basis of an order approved by the head of the relevant federal government agency.

The bonus is paid based on the results of the reporting period (quarter, half-year, 9 months, year) or for the performance of a specific task by a civil servant.

The amount of the bonus is set individually for each civil servant. When determining the amount of the bonus, the management of the government agency takes into account the following factors:

• quality of task completion;
• efficiency and professionalism in work;
• initiative of a civil servant;
• use of progressive working methods.

At the same time, the government agency reserves the right not to pay bonuses to civil servants who:

• have an outstanding disciplinary sanction;
• violate the rules of labor discipline and routine;
• do not comply with established deadlines for completing special assignments, as well as tasks within the framework of job regulations.

Based on the results of the reporting period or upon completion of a particularly important task by a civil servant, the head of the government agency issues an order on bonuses, in which he indicates the amount of remuneration. The amount of the bonus is set individually, regardless of the official salary.

The amount of the bonus is set individually, regardless of the official salary.

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