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Compensation for a delay in paying an employee’s salary will be increased

22.02.2017

The deputies of State Duma have expressed the need to set the size of the monetary compensation of not less than 1/100 of the key rates by the Bank of Russia from the period in which payment has not been made for each day of delay. Currently, the rate is not lower than 1/150 of the key rate (Art. 236 of the Labor Code).

According to Federal State Statistics Service (Rosstat) total arrears of wages is increasing, provided that a significant part of what is in arrears is owed to the organizations that are in stages of bankruptcy. Currently, the monetary compensation paid to the employee in the event of late receipt of payments due to the employee is an insignificant amount.

According to deputies, the bill will increase the level of employees’ social protection of organizations of all forms of ownership.

It should be noted, that if the employer does not transfer on time the required payments to the employee, the compensation payment, which the employer is obliged to pay, shall be calculated on the day following the due date until the day of actual payment. If wages and other employee’s benefits are transferred on time, but not completely, then the amount of compensation shall be calculated based on what remains unpaid.  

Provided that, in the collective agreement, employment contract or local regulatory enactment of organization, the size of monetary compensation, that currently is in force, can be increased. It should be noted that the compensation relies on the employee, regardless of the fault of the employer (Art. 236 of the Labor Code).

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