Hourly wages in 2021 in the employment contract

Labor Code of the Russian Federation hourly wages

The legislation of Russia and Article 123 of the Labor Code of the Russian Federation states that with correctly drawn up legal acts and prescribed terms of the agreement, each employee has the right to arrange work with payment for one hour. This type of activity refers to a time-based type of income and is also subject to mandatory official registration and regular payment of funds. The peculiarity of this type of work is that wages are calculated based on the actual number of hours worked. Such a condition must be prescribed in the contract, based on the provisions of Article 57 of the Labor Code of the Russian Federation.

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Hourly payment according to the provisions of the Labor Code of the Russian Federation can be:

Simple. This system most often operates in public sectors. Only the amount of time worked is paid.
Premium-simple. The amount of funds paid includes both the time worked and the quality of the tasks performed. The amount depends on the rate and calculation of the premium.
Normalized. This type of payment of funds is based on the fulfillment of the established norm.

It is noted that according to the Law, the amount of the minimum payment for labor should not be lower than the minimum wage. This rule applies in accordance with Part 3 of Article 133 of the Labor Code of the Russian Federation. At the same time, the calculation of wages for each hour of work is done on the basis of time recording. The entire amount of time worked, which should not exceed 40 hours per week, is recorded by the boss in accordance with Part 4 of Article 91. If the employer has assigned workers to night hourly shifts, the salary level according to the Law of the Russian Federation is doubled for each hour of work. This type is convenient to install for part-time workers and employees who have a flexible schedule. Since each hour of work is paid at the same rate.

Minimum hourly wage in 2021 in Russia

The conditions for payment for each hour of labor must be applied taking into account the minimum minimum wage indicators. Part 3 of Article 133 of the Labor Code of the Russian Federation states that the minimum wage is 7,500 rubles. Also, when recording time, the boss may not record the period worked by the employee. The maximum duration for part-time work is 40 hours per week. It is worth noting that the Law does not limit the increase in income for each hour of work if the employer himself expresses such a desire.

What is time wages?

Time-based wages are the most common option for settlements between employers and employees. In this case, wages are calculated based on their salary (or tariff rate) taking into account the actual time worked. Salary is a remuneration of a set amount, which is accrued for the performance of direct labor duties for a fully worked month.

The hourly rate is a fixed amount that an employee receives per hour. Hourly wages are a type of time-based wage and are calculated based on the number of hours actually worked. This form of payroll is convenient for employees with a flexible schedule, as well as people combining several jobs.

There are several options for hourly payment:

Simple. It is used in budgetary institutions and involves establishing a fixed amount for 1 hour of work;
Hourly rate + bonus: the salary consists of the tariff amount and remuneration for the quality and volume of work performed or services provided;
Normative. It represents an hourly rate and a standard that must be met. In this case, the employee can count on receiving additional payment if the established plan is exceeded.

How to conclude an employment contract with hourly wages - sample

If an employee wants to work and receive a salary for each period worked, based on Article 123 of the Labor Code of the Russian Federation, he has the legal right to draw up an agreement with payment for each hour. To do this, the employer and employee must mutually establish and prescribe the specifics of this type of income.

The contract should be drawn up correctly as follows:

The tariff rate for hourly activities is fixed taking into account the minimum wage indicators.
The income level is determined by multiplying the rate and the hours worked.
Information is provided regarding vacations, days off and sick days.

Calculation of time wages in 2021. Formula

The hourly rate depends on several factors. In particular, it is influenced by the employee’s professional experience, level of qualifications, complexity of functionality, level of education, and others. According to current legislation, a person cannot work more than 40 hours a week. Based on this, the minimum cost of working hours is calculated. To do this, you need to divide the minimum wage by the number of working hours per week (no more than 40 hours). The hourly wage cannot be less than the minimum wage. The final size is calculated using the following formula:

Salary = hourly rate * actual number of hours worked.

Let's look at an example. The hourly rate of a children's sports school coach is 500 rubles. The timesheet indicates that the employee worked 53 hours in November 2021. Thus, his salary will be 500 * 53 = 26,500 rubles. You need to subtract 13% tax from this figure. It turns out to be issued 23,055 rubles.

Order for employment with hourly wages - sample

After the execution of the employment contract is completed, the employer issues an order to accept the employee for the position. Form T-1 is the correct form of order.

To correctly complete an order, please provide the following information:

Full company name.
Employee position.
Personal data of the worker and his personnel number.
Salary level. At this point, the employer must enter the amount of income for hourly work.
Features of working conditions and the basis for them.
Date of drawing up the act.
Document Number.
Signature of the manager and employee.

For more detailed information on how to correctly fill out an order, you can.

What does the LDPR offer?

At the beginning of the summer, it became known about the LDPR party’s proposal regarding an hourly minimum wage. The rate was announced - 150 rubles per hour.

Recently this proposal was submitted to the State Duma (bill No. 1021580-7).

The subsistence level of the working-age population is extremely low and does not ensure the reproduction of the labor force, but only ensures the level of physiological survival of a person, according to the explanatory note to the project.

Therefore, using the minimum wage in the amount of 12,130 rubles per month to calculate wages when hiring an employee for temporary work on a part-time basis will not allow him to ensure a normal life for a month.

In Russia, the hourly rate based on the minimum wage is extremely low and in 2021 ranges from 89.85 rubles. in May up to 65.92 rubles. in July.

In this regard, the project envisages setting the hourly rate at 150 rubles. We are talking about cases of concluding a fixed-term employment contract on a part-time basis.

Let us note that this project received a negative conclusion from the Government.

How to calculate hourly wages - calculation example

Hourly wages in 2021 are calculated as follows:

You need to multiply your income, taking into account the established tariff, by the duration of the week/month/year. For example, an employee works hourly for 250 rubles. He worked 80 hours in a month. This means you need to multiply 250 by 80. The final amount of earnings will be 20,000 rubles.

This simple formula will allow even an employee to calculate the level of income.

Application cases

The possibility of concluding an employment contract for hourly wages is enshrined in law. Documents in which remuneration is calculated based on the tariff hour are not very common. Typically, they are used in cases of service delivery, the actual volume of which can be accurately measured in hours. This option is acceptable in the pedagogical field, in particular, for teachers who are employed externally and internally. In this case, the volume of service provided is measured by lessons taught (academic hours) or pairs (in higher education institutions). Hourly wages are also suitable for flexible workers and salaried employees, such as tutors, nannies, and craftsmen.

The amount of wages is set by the employer, and he is guided by the wage system, which is enshrined in local regulations. According to the Labor Code of the Russian Federation (Article 91), the employer is also obliged to keep records of the time actually worked, and the tariff is set for each hour worked. The provision for hourly wages must be reflected in the contract.

Features, advantages and disadvantages of the hourly wage system

Compared to any other types of remuneration systems, hourly wages under an employment contract have both certain advantages and disadvantages. Therefore, its implementation may be justified in some cases and demonstrate extremely low overall effectiveness in other situations. To make it easier to understand all the positive and negative aspects of the hourly rate, the employer should carefully study them. So, the advantages of hourly wages include:

High efficiency of working time control. In this case, the employer does not pay for the time of breaks, smoking breaks of employees and wages are accrued directly for time effectively spent within the workplace or while performing work duties in most situations. This increases operational efficiency and reduces the overall cost of maintaining the payroll fund. That is why hourly wages during a shift work schedule are also one of the most convenient principles for calculating wages.
Greater level of employee motivation. Compared to the salary system, which is also considered to be time-based, the hourly system is much more effective in terms of motivating workers. This is due to the fact that it directly encourages workers to spend more time performing work duties, while on a salary they may end up spending a significant portion of their time away from the workplace.
Protection against long working hours. With a salary or other remuneration systems, many employers establish in the employment contract the possibility of having irregular working hours. With an hourly payment system, unnecessary delays at work and prolongation of the total cost of an employee’s working time will, although not paid at a double rate, be subject to payment at a standard rate, which is a positive side of such a mechanism for workers.
Extremely high efficiency when working part-time or with a flexible work schedule. The advantages of the hourly payment system for part-time work will not allow the employer and the employee to violate the laws prohibiting the employment of part-time workers with a total working time of more than 20 hours per week. With a flexible work schedule, the employer can establish a free attendance regime at the enterprise for certain positions, which will be convenient for both employees and the employer himself. Workers will feel maximum psychological freedom, and the employer, in turn, will pay only for the actual time workers perform their direct duties.

Despite the above advantages, hourly wages also have certain disadvantages. They should also be taken into account when deciding to install such a system. These include the following factors and features of such a salary calculation mechanism:

High costs. Providing an hourly or, even more so, a minute-by-minute working time recording system requires the mobilization of certain resources. Convenient, but expensive, are automated employee time tracking systems, activated by employees’ magnetic cards and using turnstiles and other technical means. However, this system can be implemented without technical support - but for this you will also have to allocate separate workers to supervise and control working hours.
Psychological discomfort . Workers who are in fairly strict conditions, when every hour or every minute of their working time is under the control of the employer, tend to reduce the overall efficiency and productivity of their work. Therefore, this factor should be taken into account.
Inapplicability in certain areas of activity. If a simple salary payment can be used in almost any work activity, then hourly payment is extremely difficult to implement for employees whose professions do not imply a permanent presence in the workplace. In this case, almost all the advantages of hourly wages will be neutralized, since the employer will not be able to ensure proper control over the employee’s movements and his management of his time.

To summarize, it can be noted that the hourly wage system is effective in many cases, but it clearly requires more attention from the employer both in terms of ensuring mechanisms for recording working hours and in terms of documenting it at the enterprise. It should be remembered that such a system can be implemented both in relation to the entire team, and individual departments and even individual employees.