Motivation is an essential part of the creative process. Therefore, for the regular work of an employee, a salary is relied on, and for high achievements, a wise leader adds incentive payments to it. Even a modest-sized additional amount helps to maintain the enthusiasm of the team and ultimately contribute to an increase in labor productivity, and hence the profitability of the organization as a whole.
The essence of the concept
According to the Labor Code of the Russian Federation, salary is a monetary reward for the efforts made in the workplace. It may depend on the qualifications of the employee, the complexity of the tasks performed by him and their quantity, quality of the result, office conditions. The amount of wages, which includes the amount of salary, incentive payments and compensation, is established on the basis of a collective agreement or other internal regulations adopted by the enterprise. Labor legislation does not contain a specific list of allowances; therefore, their characterization should include a collective agreement.
Classification of possible allowances
In accordance with the Unified Recommendations, which establish a system of remuneration for employees of state institutions in the Russian Federation, incentive payments are usually divided into 5 groups:
- For high performance and excellent results.
- For the quality of work.
- For the length of service and experience.
- For knowledge of a foreign language and other special skills.
- Premium.
The premium for high performance and excellent results includes the following categories:
- payments for labor productivity;
- premium for results;
- allowances for the achievement of certain production goals or tasks.
The second group includes:
- qualification allowances;
- premiums for first-class assignments.
Status payments consist of allowances for seniority or length of service. As for premiums, they are usually accrued based on the results of a certain reporting period.
Incentive Payment Regulation
The provision on incentive payments can both be an integral part of the collective agreement and be formulated as a separate agreement. The presence of the extended characteristics of individual groups allows the employee to independently assess the level of his salary, otherwise you need to rely on the informal rules that exist in this enterprise.
Documenting
Incentive benefits to employees are accrued in accordance with internal regulations. The employment contract must contain references to them. For example, the documenting of bonuses is done on the basis of a special application that discloses the procedure and frequency of their payment. In large organizations, the relevant clauses may be contained in a collective agreement. It highlights the following points:
- a list of individuals who may receive incentive payments;
- frequency of bonuses;
- types of allowances;
- the procedure for determining the size of the monetary stimulus;
- accrual conditions.
If the prize is a one-time character, then the order of the head is sufficient.
Payout calculation
The establishment of a bonus system is the prerogative of enterprise management. Competent payment of allowances allows you to establish feedback and is an important means of approval of the high merit of employees. In this case, the collective agreement may provide for both relative and absolute sizes of premiums.In state and municipal enterprises they are established by authorities. In commercial organizations, incentive payments are often defined as a percentage of an employee’s salary.
Tax surcharges
The amount of bonuses is an integral part of wages. However, for the purposes of proper taxation, it is customary to divide them into two types: paid out of the amount of net profit and included in the cost of employees. The first category includes bonuses related to production results. They are subject to income tax. The second group includes premiums from the net profit of the enterprise. If incentive payments are not provided for in the collective agreement and do not meet the requirements Article 255 of the Tax Code of the Russian Federation, then they are not subject to UST. But an ordinary employee does not need to understand such subtleties, his job is to try to carry out all the work tasks before him.
Distribution of incentive payments
Article 135 of the Labor Code of the Russian Federation defines the process of monetary incentives. At the same time, the possibility of receiving allowances is tied to achieving a beneficial effect from labor activity. The essence of this method of motivation is that the incentive to make additional efforts is not associated with a fear of punishment. Thus, the employee has a choice, and management can push him to a more useful behavior for the enterprise.
Given the acute shortage of first-class specialists in many areas of the economy, stimulus payments are becoming increasingly important. They are the motivation that helps employees not to be disappointed in the routine and continue to translate their extraordinary ideas into practice. Therefore, additional labor costs are not primarily costs, but the key to long years of business prosperity.
