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A new key rate will be used in the calculation of monetary compensation for any delay in the payment of salary

06.02.2020

The Board of Directors of the Central Bank of Russia reduced the key rate by 25 b.p. to 6% per annum.

The gradual decrease in the key rate will take place from June 2019, and the next scheduled meeting of the Board of Directors of the Central Bank of Russia regarding changes in the key rate is scheduled for March 2020.

The amount of the key rate has a direct impact on the calculation of monetary compensation when the employer withholds wages and other employee benefits. Thus, according to the Labor Code, the amount of this compensation should not be lower than 1/150 of the Bank of Russia's key rate at that time from the amount not paid on time and for each subsequent day it is withheld.

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