In the world of information technology, the tariff schedule and the rate can be essential in determining employees’ salaries. The tariff schedule is a system of wage levels that determines the salary based on the employee’s qualifications, work experience, and professional skills. The rate is a specific numerical value that indicates the level of wages. This article will look at the tariff schedule and rate and how they affect wages.
What are the advantages of using the tariff system
The tariff schedule is not mandatory for all companies, but it has certain advantages.
Using a tariff schedule and rate can become essential for planning the salary budget and managing employees’ salaries. Here are a few reasons why this is useful for companies:
- Transparency and fairness
The tariff schedule and the rate create a standard system of remuneration based on objective criteria such as qualifications, work experience, education and professional skills. This helps to avoid possible conflicts and ensures fairness in determining wages. - Employee motivation
Knowing their place in the tariff schedule and the expected tariff rate, employees clearly know how to increase their salary level. This stimulates them to further development and professional growth. - Effective budget planning for labor remuneration
The tariff schedule makes it easier for companies to budget for employee salaries, conduct cost analyses, and efficiently allocate resources. It also helps to determine the salary structure based on employees’ roles and responsibilities.
In general, the use of the tariff grid and the tariff rate promotes transparency, fairness, employee motivation, and effective personnel management, which makes them important tools for companies in modern business.
Tariff schedule and features of its application
The tariff schedule is part of the tariff system of remuneration, which includes a basic tariff rate. Starting from January 1, 2024, the base rate is 250 Belarusian rubles (for budget organizations).
The tariff grid looks like a table in which several tariff categories correspond to certain positions with corresponding increasing coefficients. The higher the digit, the greater the numerical value of the boost factor.
Mandatory tariff schedule for public sector employees
Currently, only budget-funded companies and those in which employees are equated to public sector employees in terms of remuneration are required to apply the tariff schedule adopted at the government level. This tariff schedule contains 7 categories of employees (with subcategories) and 18 tariff categories. Each category corresponds to an increasing coefficient. The higher the discharge, the higher the coefficient. This does not mean that the salary of any employee can be charged from 1 to 18 categories. For example, a qualified job (this is a job that requires professional training) starts at grade 3, and several positions cannot be charged above grade 8.
Ministries set tariff categories for public sector employees in certain industries. For employees who need industry specifics (accountant, legal adviser, programmer, system administrator and others like that), the budget organization determines the category itself.
The category is determined based on the work’s complexity and the employee’s qualification requirements, which are defined in the qualification characteristics of the position in a unique reference book: the Unified Qualification Directory of Positions.
Tariff schedule for other companies
Companies that are not part of the budget can develop their tariff plan from January 1, 2020. The tariff schedule refers to the company’s local documents and is approved by the head.
The peculiarity in this case is that when developing a tariff schedule, one of two options can be used:
- Option 1. Tariff plan based on a single tariff plan
The unified tariff schedule is an invalid document mandatory for all Belarusian companies until January 1, 2020. The company’s tariff plan, developed based on a Single Tariff Grid, should look the same: tariff coefficients should correspond to tariff categories. - Option 2. Tariff schedule based on our developments
The company can adopt its tariff plan, which is not based on a single tariff plan. In this case, it is necessary to distribute all employees according to the tariff categories of the tariff grid independently, taking into account the complexity of their work, working conditions, and qualifications of employees.
Also, companies do not have to use a tariff scale to determine the salary of all employees. For example, for some positions, you can use the tariff schedule approved by the head; for others, you can set personal tariff salaries (rates) without billing by category.
What is the tariff rate?
Let’s look at the introductory tariff rate and what tariff rates are.
Basic tariff rate
The introductory tariff rate is the same as the first-class tariff rate. The salary for each category is calculated from this rate. Private businesses can determine the size of the tariff rate of the first category itself. For public sector employees, the size of the base rate is determined by the government.
Tariff salary: how to calculate salary using the basic tariff rate
The tariff rate (tariff salary) is the minimum guaranteed amount of remuneration for an employee per unit of time.
To determine the amount of salary (tariff salary), the base tariff rate is multiplied by the coefficient of the tariff grid, which corresponds to the tariff category of the employee.
In addition to tariff payments, the company’s wage system may provide for non-tariff payments.
How many basic tariff rates can there be
A company may have several basic tariff rates for different categories of employees. For example, the base rate may be higher for managers than specialists.
The introductory tariff rate can be increased once or for a while.
When is it necessary to raise the tariff rate
When hiring an employee under a contract, the employer must include a condition for an increase in the tariff rate (tariff salary) by no more than 50%. The agreement must specify the percentage by which the employee’s tariff rate (salary) is increased. This applies to mandatory additional measures to stimulate the employee’s work. In this case, there are no restrictions on the amount of interest to a lesser and a greater extent: this can be, for example, from 1% to 50%. The tariff salary is multiplied by this percentage, and the amount by which the employee’s earnings are increased is obtained.
Limitation of the basic tariff rate
Usually, the introductory tariff rate is set at least below the minimum wage, although this is not necessary. Starting from January 1, 2024, the minimum salary is 626 rubles. There are no restrictions on the size of the introductory tariff rate.
The basic tariff rate is limited only to companies included in the State Register of Natural Monopolies. At the end of March 2024, these were 184 state-owned and state-owned organizations. In such organizations, the tariff rate of the first category is equal to the budget of the subsistence minimum for the able-bodied population. Starting from January 31, 2024, this is 405.27 rubles.
What is the hourly rate?
Hourly rates are used when companies apply hourly wages. To calculate such a rate, you need to divide the tariff rate by the number of working hours per month. The average number of working hours per month is determined as follows: the annual estimated standard of working time determined by the government is divided by 12.
To determine the salary of employees, you can turn to Payroll services in Belarus, which include calculating wages, bonuses and overtime hours, as well as withholding mandatory deductions such as taxes and social security contributions.
How to contact us
For more information or advice on issues related to the tariff plan, do not hesitate to contact us. We are here to help and support you.
Phone and email communication options are available for your convenience:
- +375293664477 (WhatsApp/Telegram/Viber);
- info@spex.by.
