Salary payment issues are related to employee loyalty and are controlled by government agencies. Since January 1, 2024, there have been changes in the procedure for paying salaries in Belarus. In order to prevent employee complaints and inspections by government agencies, it is important for employers to follow a certain procedure. We recommend that you get advice from a competent lawyer on all issues related to the rules of payment of wages and the organization of remuneration in the company.
Wages in Belarus
Salary is a reward for the work of an employee with whom an employment contract has been concluded. The payment of wages is the responsibility of the employer. The amount of wages in Belarus is not limited to the maximum amount. The amount is set by employers for the work performed. Wages depend on the complexity of the work, its quantity, quality, working conditions and qualifications of the employee, taking into account the working time that he actually worked.
The salary does not include various compensations that an employer can pay to employees: for the use of personal vehicles, for mobile communications.
Wages are paid not only for the amount of working time worked, but also for the periods that are included in working hours. This is, for example, the period of work leave.
The wage system in Belarus
The wage system is a method of calculating wages that an employer uses. This method should ensure that employees’ work is accounted for. The main payment systems:
Time-based system
With such a system, an employee’s remuneration depends on two indicators: the actual time worked and the employee’s tariff rate (salary). In this case, you can calculate the hourly, daily payment.
Piecework payment
With such a system, wages depend on the quantity of products produced by the employee, taking into account its quality, complexity and working conditions. In the piecework system, piecework prices are set per unit of production or goods, services rendered.
Mixed payment options are also used: time-premium, piece-by-piece, premium, etc.
What does the salary consist of?
There are two parts of the salary:
- The permanent tariff part, which includes the size of the tariff rate, the tariff salary
The tariff part of the salary is determined on the basis of tariff rates (tariff salaries). These amounts are usually determined by the employer himself. The tariff rate (tariff salary) is the minimum wage per unit of time: an hour or a month, excluding other payments that are set by the wage system. This is a mandatory part of the salary.
2. Variable over-tariff part, which includes compensatory and incentive payments
The variable part of the salary includes payments that compensate the employee for some work-related circumstances. In Belarus, such compensations are established in the legislation, and the company may additionally establish other compensations.
For example, the employer establishes an additional payment for combining positions, professions, increasing the volume of work or performing the duties of a temporarily absent employee by agreement with the employee. And the additional payment for night work must be set by the employer in the amount of at least 20% of the hourly rate (salary) of the employee.
Variable incentive payments include bonuses, allowances, and increases for work under a contract.
When concluding a contract with an employee, he is required to establish additional labor incentive measures and an increase in the tariff rate (salary) by no more than 50%.
Accounting for incentive payments in taxation and pricing
Companies can, without limitation, include incentive payments in costs that are taken into account in taxation and pricing. However, for companies that are included in the State Register of Natural Monopoly Entities, a standard has been established: they can include the cost of their products (works, services) and include in the costs that are taken into account in taxation and pricing, the amount of incentive payments within 80% of wages.
The minimum wage in Belarus
Companies are obliged to pay employees wages not lower than the minimum wage established in Belarus. The Government of Belarus sets the minimum wage starting from January 1. Starting from January 1, 2024, the minimum monthly salary is set at 626 rubles.
Based on the minimum monthly wage, companies calculate the minimum hourly wage. Companies change the hourly minimum wage when the monthly minimum wage changes.
In all cases, we are talking about accrued wages.
When the accrued salary is below the minimum wage, the company is obliged to pay the employee up to the minimum amount.
The company can set its own minimum wage, not lower than the amount determined by the Government of Belarus.
Wage indexation
Wage indexation is an increase in wages by a certain percentage. The company may index wages due to a delay in payment starting from one month and longer than the period specified in the employment contract with the employee. Such amounts are indexed separately for each month. Untimely amounts paid are adjusted for the consumer price index, calculated on an accrual basis for the period of delay in payment of wages.
A company can index wages due to inflation.
Terms of payment
The terms of remuneration must be included in the employment contract or in the contract that is concluded with the employee. Remuneration is the amount, structure, conditions and procedure of payment of wages for the performance of work.
Companies can develop local documents on the conditions of remuneration: regulations on remuneration, regulations on bonuses. Or the payment procedure can be prescribed in an employment contract or a contract concluded with an employee.
When changes in the terms of remuneration are expressed in a reduction in wages and occur on the initiative of the company, each employee must be notified of such changes individually no later than one month in advance. Employees who refused to work due to the changes are fired with a severance payment in the amount of two weeks of average earnings.
The procedure for payment of wages
The company can pay the employee’s salary in cash at the place where he performs work duties or to a bank account. Usually, a transfer to a bank account is used.
To do this, the company enters into an agreement with the bank, the so-called “salary project”. In such an agreement, the procedure for crediting the wages accrued by the company to the bank accounts of the company’s employees, etc. is determined.
There is another procedure for paying wages: the company can transfer money to the employee’s base account. To do this, the employee himself informs the company of his bank account details.
On a monthly basis, the company must issue a pay slip to each employee, which prescribes the composition of wages for the month, the amount of deductions and the total amount that is paid to the employee. The company develops the form of the pay slip itself, it is approved by the employer.
Salary payment day
When the date of payment of wages falls on a day off or a public holiday, the company is obliged to pay wages on the eve of such a day.
Changes in salary payments in 2024
In 2024, due to changes in labor legislation, the deadlines for paying salaries to employees with whom contracts were concluded were clarified. This change is not initiated by the company, so you do not need to warn employees about changes in working conditions in a month.
Until January 1, 2024, the contract concluded with the employee could provide for the payment of wages once a month. Starting from January 1, 2024, companies must pay salaries at least twice a month to all employees, including those with whom a contract has been concluded. The company prescribes the dates on which wages are paid in the employment contract. An advance payment is made on one of the dates, and the final payment is made on the second. The advance payment is considered to be the payment for the first half of the month. The amount of the advance payment is set by the company independently.
Making changes to contracts concluded with employees
The contracts, which provided for the payment of wages once a month, need to be amended. In all matters related to the registration of changes to contracts, the development of new local documents on remuneration and changes to existing documents, you will find support in consultations with our lawyers. We can develop new documents on remuneration issues for you or audit existing documents.
How to contact us
For more information or advice, do not hesitate to contact us. We are here to help and support you. Phone and e-mail communication options are available for your convenience:
- +375293664477 (WhatsApp/Telegram/Viber);
- info@spex.by.
