The tariff system of remuneration includes a certain set of regulatory framework, within which there is regulation and differentiation of wages among different categories and groups of employees depending on the degree of difficulty and intensity of the work process, level of qualifications, as well as features of the type of production and work, which are citizens.
Elements of the tariff structure as an instrument of remuneration
What does the wage system include? The most important elements that make up the tariff structure are instruments such as rates, grids, and related ratios.
The tariff system of remuneration of workers includes a total set of different qualification categories and related coefficients that calculate the value of tariff salaries and rates, that is, this determines the dependence of remuneration on the qualifications of employees, as well as the level of complexity of work and management.
Tariff coefficients determine the correlation of citizens' qualification levels according to their ranks and clearly demonstrate how the tariff rates of subsequent rank indicators prevail over the rates of the first. The tariff system of remuneration includes the following elements, we will consider them below.
Rates and tariff coefficients
At the expense of tariff rates, the level of remuneration of a staff member of the corresponding qualification type for one unit of the time period, for example, an hour, a day, or a month, is determined. On the basis of rates and tariff coefficients related to the first category, there is a direct differentiation of tariff salaries by categories according to the signs of the level of complexity of the types of work being carried out and the degree of qualifications of employees.
According to article 60 of the Labor Code, the wage system for employees includes monthly or annual rates.
The inclusion in the salaries of other factors for its differentiation, such as severity, labor intensity, conditions, the importance of its field of application, industry nuances, qualitative and quantitative results of collective and individual types of employment, occur at the expense of other tools for drawing up cash payments. In their regard, the tariff rate or salary as wages for the norm is considered the basis for the formation of the total wage.
Also, the tariff system of remuneration includes official salaries, which determine the level of remuneration for work for employees of institutions. They are financed from the budget, while state subsidies are actively used.
Government tariffs
We have considered above that the tariff system of remuneration includes tariff rates. These standards aimed at remuneration of labor are calculated on the basis of a single grid of employees, the corresponding directory of professions, as well as specialists and employees. This base was approved in the framework of the established procedure and tariff rates of the 1st category.
The increase in the tariff coefficients of the single tariff grid or, for short, the UTS in the range of categories is valid in the following volumes:
- The first to fourth digits of sixteen percent.
- Fourth to sixth - ten.
- From the sixth to the twenty-third digits - by seven percent. As we have already said, the wage tariff system includes elements, and the size of earnings depends on this.
What determines the differentiation of the minimum wage?
Within the framework of the functioning of the single tariff grid, differentiation of the minimum wage level is ensured, depending on factors such as:
- the level of complexity of the labor process or qualifications in the field of a particular profession or position;
- the content and nature of the work of employees, specialists, heads of departments and associations in the field of administrative services, heads of enterprises, organizations, institutions, technical executives, as well as production and functional departments;
- general working conditions, difficulties associated with the release of new products and the provision of services, social factors;
- modes of work and rest, as well as other specific nuances characteristic of the types of activity.
The nuances of the tariff system
We examined what the tariff system of remuneration of workers includes.
The indicators calculated according to the unified tariff scale of employees, which are established and directly regulated by law, represent an absolute guarantee of the provision of remuneration to employees of the corresponding qualification sphere, which are financed from the budget and also use state subsidies.
For employees in the manufacturing sector, the structure of the single tariff grid consists of twenty-three corresponding categories and has absolutely the same ratios of coefficients, which also apply to public sector employees. The heads of institutions are required to use state tariffs for the competent differentiation of citizens' wages as minimum guarantees for the size of labor payments.
Tariff and Qualification Directories
Qualification and tariff lists of jobs and professions of full-time employees act as systematic lists of activities and various professions that are available at enterprises and institutions. They fully formulated all the necessary characteristics and requirements of a qualifying nature, which are presented to employees performing different in content, degree of complexity and profile of work. They also list requirements related to production skills, labor practices, professional knowledge and skills for organizing a workplace, and also take into account the degree of responsibility that is assigned to employees for the correct and proper implementation of their duties.
Tariff and qualification directories are directly intended for carrying out the corresponding work and assigning categories to employees. Using these tariff qualification tools, regular employees are rated from the first to the eighth category, which, of course, makes it possible to assess the degree of difficulty of a particular profession using the same meters, namely the nominal value of the indicator.
State regulation of tariff mechanisms
Tariff and qualification requirements for employees are determined through the Qualification Directory of Employees (KDS).
The mechanisms in the regulation of wages in modern conditions of market relations should be based solely on the mutual combination of contractual and state interaction. The system in the field of wage control is decisive in the issue of the formation of appropriate tariffs.
One of the main tasks of state regulation is, first of all, the clear establishment of the lowest salary indicator, leading tariff rates, as well as the necessary ratios. The contractual nature involves the use of tariff, general and industry agreements, as well as collective and labor documents.
Minimum wage
The concept of the minimum wage is given in article No. 59 of the Labor Code. This category represents the smallest state size in respect of cash or real payments to a full-time employee by his employer in the period of one month for carrying out activities under normal conditions. It is also important here to observe the established length of the working period and the proper implementation of labor standards established in the document of the same name. The minimum wage does not include categories such as:
- various surcharges;
- allowances;
- Prizes
- incentive and compensation payments.
The amount of the minimum wage amount is calculated based on the lowest value of the consumer budget, which is expressed by a certain set of material services and goods, which are considered necessary to fully ensure the citizen’s life and preserve his health. As for the living wage budget, here we are talking about the value of its limit.
Consumer Basket Category
The real-natural element of the minimum point of the consumer budget is created through the normative method, as part of the foundation structure of the so-called consumer baskets. A consumer basket is a set of services and goods that are vital to a person:
- nutrition;
- footwear;
- clothes;
- cultural objects;
- elements in the field of sanitation and hygiene;
- Payment of utility services;
- medications;
- spending on household services;
- use and payment of transport.
Many are interested in what it includes. The tariff system of remuneration of employees takes place in the order that is determined by the presence of collective documents - contracts and agreements, depending on the degree of complexity and special working conditions of these citizens, as well as their qualifications.
Inflation and Indexing
On the basis of inflation, which is caused by an increase in the cost of consumer services and goods, there is a direct indexation of wages. This measure is made for the volume of the consumer price index with changes in relation to various shares of income according to the scale of standards established by the legislative bodies of the country. This happens when the consumer price index, calculated on an increasing total since the previous indexations, passes a five percent indicator. Thus, the process of indexation of wages is carried out under the guise of a one-time revision of such values of labor payments as salaries and rates.
We examined what the tariff system of remuneration includes.