The Committee for Labor, Employment, and Social Protection clarified the procedure for increasing the remuneration of employees depending on the growth of labor productivity

By Resolution of the Council of Ministers of the Republic of Belarus of April 23, 2021 No. 243 "On Amending the Resolution of the Council of Ministers of the Republic of Belarus of July 31, 2014 No. 744", amendments have been made to paragraph 1 of the Resolution of the Council of Ministers of the Republic of Belarus of July 31, 2014 No. 744 "On Remuneration of Labor of Employees".

Resolution No. 243 has been prepared based on proposals from state bodies and organizations.

The norms of paragraph 1 of Resolution No. 744 regulate the increase in remuneration of employees of state organizations and organizations in which the state's ownership share in the authorized fund exceeds 50 percent (hereinafter referred to as state organizations), depending on the growth of labor productivity.

For reference:

According to the first part of Article 63 of the Labor Code of the Republic of Belarus (hereinafter referred to as the LC), the remuneration of employees, including incentive (allowances, bonuses, and other payments) and compensatory (allowances in accordance with Articles 62, 67, 69, and 70 of the LC and other payments) payments, is established by the employer on the basis of a collective agreement, an agreement, other local legal acts, and an employment contract.

Resolution No. 243 establishes that in state organizations and organizations in which the state's ownership share in the authorized fund exceeds 50 percent (hereinafter referred to as state organizations), the remuneration of employees is increased, provided that the ratio of labor productivity growth to nominal accrued average monthly wages is more than 1.0.

Resolution No. 243 grants the head of a state organization the right:

to change the remuneration and (or) the structure of wages for employees within the total amount of remuneration established by local legal acts and employment contracts

This right will allow for a one-time review of the tariff rates (tariff salaries) of employees during salary indexation, and for improving the salary structure of employees, etc., provided that the overall level of remuneration established by local legal acts and employment contracts is maintained.

increase the remuneration of employees of a separate subdivision with a separate balance sheet, provided that the ratio of labor productivity growth to the nominal accrued average monthly wage is more than 1.0 in this separate subdivision.

That is, employees of such a subdivision are entitled to a salary increase, even if the overall growth of labor productivity in the organization is insufficient or absent.

When calculating labor productivity in a state organization, revenue from the sale of products, goods, (works, services) or value added per average listed employee is used.

The indicator for calculating labor productivity is chosen by the state organization for a calendar year in agreement with the higher authority (organization).

Resolution No. 243 provides for the possibility to change the indicator for calculating labor productivity once during the calendar year in agreement with the higher authority (organization).

For reference:

Previously, changing the indicator for determining labor productivity during a calendar year was allowed only in case of replacing the indicator of revenue from the sale of products, goods, works, services per average listed employee with the indicator of value added per average listed employee for the same calendar year.

The application of the norms of Resolution No. 243 will allow for more flexible decision-making on increasing the remuneration of employees in state organizations and their separate subdivisions with separate balance sheets, as well as maintain employee motivation in ensuring labor productivity growth.