Northern allowances and the regional coefficient serve to cover the increased material and physiological costs of citizens living and performing work in the North. When is the regional coefficient paid? How to determine its value? Find out from the article about its size and calculation.
Also see:
- Northern surcharge: what is it and how is it calculated
- How to find out the size of the northern surcharge: calculation examples
How to extract the regional coefficient from the amount
Relocation may be grounds for cancellation of allowances.
But the following employee income cannot be included in the base for applying the coefficient:
- business trips;
- vacation pay;
- material aid;
- one-time bonuses;
- "northern" allowances.
The regional coefficient for northern citizens is calculated monthly. From the amount that will be obtained after its accrual, the employer already makes contributions to funds, including the Pension Fund, and deducts personal income tax. Therefore, the pension for northerners is already increased from the very beginning. But it persists only if pensioners continue to live in such climatic conditions.
The reason for this may be various factors, the economic well-being of the country, the average level of wages, the complexity of the work performed due to certain factors. But the greatest influence on the amount of wages is exerted by natural and climatic conditions, and the more severe they are, the more effort and finances must be spent on performing the work.
Which is expressed in monetary terms as an increase to the average salary for a particular region. In order to more fairly determine the amount by which it is necessary to increase the salary of an employee in these climatic and natural zones, it is necessary to use the appropriate tool.
Labor Code of the Russian Federation).
And ordinary organizations can apply such coefficients (Article 1 of the Law of February 19, 1993 No. 4520-1). That is, companies have the right to choose which size to use – federal or higher regional (local).
The decision is fixed in a collective or labor agreement.
Who is charged the regional coefficient?
Both main employees and part-time employees have the right to the regional coefficient (Article 285 of the Labor Code of the Russian Federation). And this does not depend on the location of the employer himself.
For example, a Moscow organization entered into an employment contract with an employee from Murmansk. He will work from home.
The salary of such an employee will be calculated taking into account the regional coefficient (letter of the Ministry of Finance of Russia dated November 13, 2010 No.
The final salary will be 25,200 rubles.
How to calculate the northern coefficient of wages
Take the values of regional coefficients from the regulations of the former USSR and the Government of the Russian Federation for the regions of the Far North and equivalent areas. For example, in a locality they set a regional coefficient of 1.15, and to understand how much this is in the form of a bonus, an accountant will multiply the salary by 1.15.
Example 3: how to calculate a salary with the northern coefficient
The employee works for Alpha LLC, which is located in the fishing area in the Sea of Okhotsk. The employee's salary ratio is 1.80. Salary – 45,000 rubles.
The monthly income of an employee, taking into account the northern coefficient, is 81,000 rubles. (45,000 rub.
Help with a description of the allowances
Upon dismissal, a certificate describing the length of service must be issued. It concerns the experience gained in certain conditions. Then, when receiving the document, difficulties may arise, so it is better to take care of solving the problem in advance.
Typically such certificates contain the following information:
- Description of allowances.
- Salary amount.
- An exact description of the addressee for the allowance.
- Employer's name.
- Company details.
Other information is entered if necessary; no one has established a standard form for certificates.
A certificate of length of service is issued to military personnel when they retire. In the future, this is also taken into account when determining various compensations.
How to extract the regional coefficient from the sum
For this area, this parameter is 1.25.
Then you need to figure out what types of payments it is accrued for.
Of the above payments, only the employee’s salary, monetary remuneration and compensation for sick leave should be taken into account.
And only now can you use the proposed formula for calculation. We substitute all the numbers and accordingly determine the amount of payment for the northerner, taking into account the premium coefficient:
1.25 x (39,500 + 10,000 + 7,750) = 1.25 x (57,250) = 71,562 rubles.
However, this amount does not include personal income tax.
Important Residents of the Far North and areas that have a similar status work in extremely difficult climatic conditions. In addition, prices for food and vital services are much higher than in the Central region of Russia. That is why they have a regional coefficient, which makes a significant increase in wages.
The regional coefficient is calculated taking into account the following factors:
- climatic conditions;
- employer's field of activity.
The maximum coefficient is used in the oil and gas industry, and the minimum in the non-production sector.
The territories for which a fixed regional coefficient is assigned are enshrined in Resolution of the Ministry of Labor dated May 11, 1995 No. 49. In Art.
In this case, if the enterprise for which the employee works is not located in harsh climate conditions, and the business trip requires the presence of the employee in these places, then the payment of a percentage-type cash bonus is not provided.
Sick leave based on the minimum wage
The amount of temporary disability benefits cannot be less than the amount of benefits calculated from the minimum wage.
A benefit in the amount of no more than 1 minimum wage for a full calendar month of illness is also paid to those employees who have an insurance period of less than six months (Clause 6, Article 7 of the Federal Law of December 29, 2006 No. 255-FZ).
Therefore, it is necessary to determine the minimum earnings for two years. It is equal to the amount of the minimum wage established on the day of the insured event (onset of illness), multiplied by 24 months.
Then you need to compare two amounts: the amount of the employee’s actual earnings and the amount of the minimum earnings for two calculation years. The comparison is made through average daily earnings. To calculate benefits, you must choose the larger of these two values.
How to calculate the regional coefficient from the amount
Employee Neklyudov has “northern” experience, which allows him to calculate salaries with northern allowances to the maximum.
This month, employee Neklyudov received:
- salary – 30,000 rubles;
- one-time bonus – 15,000 rubles;
- sick leave payments – 8,400 rubles;
- financial assistance – 2,500 rubles.
How much money will he receive? In the formula for calculating the northern allowance, in this case, only the “bare” salary is used.
Minimum wage approved by law.
That is, at the legislative level, based on the real subsistence level of the working population, a certain amount of material support is established, thanks to which the worker will be able to provide himself with everything necessary and below which the employer has no right to pay.
Moreover, if an employee performs his duties in conditions deviating from normal conditions, for example, in difficult climatic conditions, which is important for the northern regions, a regional coefficient is also added to the already guaranteed minimum wage in accordance with the norms enshrined in Article 316 of the Labor Code RF and in the amount approved by Law No. 4520-1.
And in accordance with Article 317 of the Labor Code of the Russian Federation, northern workers are also entitled to a bonus, calculated in proportion to the length of service in areas belonging to the far north or equivalent to it.
Approximately the same meaning is given by law to the northern bonus in accordance with Article 137 of the Labor Code of the Russian Federation, which, in essence, is financial gratitude at the state level for work experience in the northern regions. After all, working for 15 years in low temperatures with excessive physical exertion is not so easy, which is why the agreed bonus is paid to northerners.
That is, following the direct interpretation of the law, wages are remuneration for a certain amount of work performed within the normal hours per month, while the coefficient and bonus are compensation for living in special climatic conditions, implying excessive expenditure of both physical strength and material resources.
- Benefits paid in connection with the birth of children.
- Payments for professional holidays and anniversaries.
- Compensation for the use of an employee’s personal property for the employer’s purposes.
- Payments associated with awarding an honorary title to an employee, and some others.
As for the procedure for applying the regional coefficient to wages, it is strictly regulated by the labor legislation of the Russian Federation and is calculated from the very first to the last working day of the employee, provided that all working days he worked in the region to which the “northern bonus” is applicable.
There are nuances
According to the requirements of the labor legislation of the Russian Federation, all employers, without exception, are required to apply regional coefficients when calculating wages of employees who work in the Far North or in regions equivalent to it.
An employee of an organization with a salary of 30,000 rubles.
sent to field work: in September - to an area equated to the regions of the Far North, where the coefficient was set to 1.7; in October - to the Chelyabinsk region, where the regional coefficient is 1.15. The traveling nature of the work is not specified in the employment contract.
The accountant calculated the salary taking into account the coefficients as follows: - in the month when the employee worked in Irkutsk, 30,000 rubles. x 1.3 = 39,000 rubles; – in September: 30,000 rub. x 1.7 = 51,000 rub.;
What income does it not apply to?
The application of an increasing rate for the following payments is not relevant:
- Northern surcharge. This is a separate concept that differs from the regional supplement itself.
- Travel allowances. Except in cases where work is performed in areas with a difficult climate as a result of such a trip.
- One-time financial assistance. It is excluded from accounting if such assistance is of a one-time nature and is not stated in any official documents of the company.
- Irregular types of bonuses.
- Vacation pay. The calculation is already underway by district, if necessary.
Calculation example
An example of calculating the northern allowance and the regional coefficient: employee V.D. Neklyudov works in the city of Syktyvkar, Komi Republic. His salary is 42,000 rubles. According to Resolution No. 49, the regional coefficient for this territory is 1.25. The maximum size of the northern surcharge for this area is 50%. Employee Neklyudov has “northern” experience, which allows him to calculate salaries with northern allowances to the maximum.
This month, employee Neklyudov received:
- salary – 30,000 rubles;
- one-time bonus – 15,000 rubles;
- sick leave payments – 8,400 rubles;
- financial assistance – 2,500 rubles.
How much money will he receive? In the formula for calculating the northern allowance, in this case, only the “bare” salary is used. That is, the amount of the premium will be 30,000 * 50% = 15,000 rubles. The size of the “coefficient” bonus is equal to (30,000 + 15,000 + 8,400) * 1.25 = 66,750 rubles. Thus, the amount of his earnings for the current month before tax will be 66,750 + 15,000 = 81,750 rubles. After taxation, Neklyudov will receive 81,750 - (81,750 * 13%) = 71,122.5 rubles
The percentage calculator allows you to make any calculations with percentages: finding a percentage of a number, what percentage is the number “X” from the number “Y”, adding a percentage to a number, subtracting a percentage from a number
To calculate, you need to enter data into the fields of the calculator, then click the “Calculate” button to get the result.
Finding the percentage of a number. To find the percentage of a number, enter the percentage value you want to find in the first field. In the second field, enter the number from which you want to find the percentage.
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What percentage is the number “X” of the number “Y”. In the first field you need to enter the number whose percentage we are looking for. In the second field you need to enter a number from which we will find the percentage of the first number.
What percentage is the number "X" from the number "Y" What percentage is the number from the number
Adding a percentage to a number. To add a percentage to a number, you need to enter the percentage value that you want to add in the first field. In the second field, enter the number to which you want to add the percentage.
Adding a percentage to a number Add a percentage to a number
Subtracting a percentage from a number. To find the result, enter in the first field the number from which you want to subtract the percentage. In the second field, enter the percentage value you want to subtract from the number.
Subtracting a percentage from a number Subtract a percentage from a number
Percent (lat. per cent - per hundred) - one hundredth. Indicated by the "%" sign. Used to indicate the proportion of something in relation to the whole. It is generally accepted that 100% = 1, so 25% is equivalent to 0.25 or 25/100.
Example. In order to calculate the percentage of a number, you need to indicate in the first field the percentage that you want to calculate, for example “20”. In the second field you need to specify the number from which the percentage will be calculated, for example “60”. After entering the data, click the “Calculate” button, the desired result is “12”.
How to calculate salary based on salary (calculation formula)
In regions where working conditions are considered special due to climatic conditions, terrain or increased radiation levels, a regional coefficient is added to employee salaries. It should not be confused with northern allowances for employees of the Extreme Server. The area of application of the regional coefficient is much wider.
In cases where an employee has the right to a tax deduction, the tax amount is first calculated, and then it is deducted from the salary. For example, the salary is 30,000 rubles. The employee worked all days. He has the right to a tax deduction of 800 rubles. The calculation will look like this:
How to calculate the coefficient
April 12, 2011 Author KakSimply! Typically, coefficients are presented as dimensionless quantities. Sometimes it is convenient to express them as a percentage. As an example, we can consider how return on sales is calculated - one of the coefficients characterizing the profitability of an enterprise.
Instructions 1 Find data on the company's net profit for the period under review. For example, this value is equal to 900 thousand rubles. All necessary data can be obtained from the accounting department or viewed in the financial statements of the organization. 2 Request data on the company's sales volume. You must get the figure for the same time period, otherwise calculating the coefficient will have no practical meaning. Let's say the sales volume is 156 million rubles. Be sure to express this figure in the same units as the figure obtained in step 1. As a result, we have 156,000 thousand rubles. 3 Calculate return on sales. To do this, divide your net profit by your sales. We divide 900 thousand rubles by 156,000 thousand rubles, we get 0.005769. This is the profitability of the enterprise for the period under review. 4 Express return on sales as a percentage. To do this, multiply the resulting coefficient by 100%. We multiply 0.005769 by 100, we get 0.58%. Please note: In a similar way, you can calculate the liquidity, capitalization, activity and profitability ratios of any organization. Keep in mind that in practice, specialists use dozens and hundreds of different financial ratios. Don't be confused - they are basically all derived from the coefficients of the above categories and are calculated in the same way. Helpful advice: Practice calculating profitability ratios for any other data from the company's income statement. You can also use data from the company's balance sheet as a basis. Is the advice useful?
How much financial assistance is provided to employees?
From an analysis of the provisions of the current legislation, we can conclude that financial assistance is a social payment that is paid by the employer to its employees in certain situations. The legislation does not contain a precise definition of the term.
Neither the list of situations when financial assistance should be paid, nor the amount of payments are defined by law. Therefore, each employer has the right to determine the specific amount of financial assistance paid to employees. At the same time, the procedure for payments, their amounts and the list of grounds for transferring funds can be determined by a local act or a collective agreement in force in a particular organization.
Absolutely any amount of payments can be fixed by a local act or collective agreement, since there are no restrictions on the maximum and minimum threshold.
If there are no regulatory documents defining the amount of financial assistance in the organization, then it is determined:
- An employer guided by his own opinion. In this case, the amount will be indicated in the payment order.
- By the employer based on the employee’s application. As a rule, an employee submits an application addressed to management, in which he indicates that a certain event has occurred in his life, for example, the birth of a child, and he wishes to receive financial assistance. The employer either makes concessions and pays money, or arbitrarily reduces or increases the amount specified by the employee, or refuses to pay.
- By the employer on the basis of a proposal from the employee’s immediate superiors, who, if desired, can initiate payments to their subordinates.
