Committee for Labor, Employment and Social Protection: on changes in the remuneration of heads of organizations
Resolution No. 612 amends the procedure for accrual and payment of bonuses, incentives and remuneration to heads of organizations, as well as the annual bonus.
Procedure for accrual and payment of bonuses, incentives and remuneration to heads of organizations
From November 1 of the current year, amendments have been made regarding the application of certain grounds, and an additional ground has been introduced, upon the occurrence of which heads of organizations, regardless of the form of ownership (with the exception of budget organizations and other organizations receiving subsidies, whose employees are equated in terms of remuneration to employees of budget organizations), will not be accrued bonuses, incentives and remuneration for the performance of their duties (subparagraph 1.1 of paragraph 1 of Resolution No. 612).
Additional ground, upon the occurrence of which heads of organizations are not accrued bonuses, incentives and remuneration
– arrears in payment for hot and cold water supply, sewerage (drainage) services consumed since the beginning of the reporting year
Amendments regarding the application of certain existing grounds
– increase in losses from the sale of products, goods (works, services)
This indicator will be assessed depending on the period of accrual of the relevant incentive payment (month, quarter, or other period). At the same time, an alternative indicator has been introduced – an increase in net loss. The specific indicator must be established by the owner of the property or the body that concluded the contract.
– arrears in payment for natural gas, electricity and thermal energy consumed since the beginning of the reporting year
The specified arrears will be determined as of the last date of the reporting period or, in cases established by law, as of the date relating to the period following the reporting period, as well as under agreements with OJSC "Gazprom Transgaz Belarus", PJSC "Gazprom".
Simultaneously, Resolution No. 612 stipulates that if an organization has fully paid for natural gas, electricity, and thermal energy, hot and cold water supply, and sewerage (drainage) services consumed since the beginning of the reporting year by December 31 of the reporting year, the head shall be paid 50 percent of the amounts of premiums, bonuses, and remuneration not accrued and not paid during the reporting year on the specified grounds.
The indicated changes are aimed at stimulating the work of heads to ensure the profitable operation of organizations, as well as the full payment of contractual obligations for consumed energy resources and main types of housing and communal services.
Calculation of Annual Bonus
From January 1, 2022, the calculation of the annual bonus for heads of state organizations and organizations in which the state's ownership share in the charter capital exceeds 50 percent will change, taking into account the number of forecast indicators assigned (subparagraph 1.2 of paragraph 1 of Resolution No. 612).
The annual bonus will be calculated in proportion to the number of forecast indicators fulfilled.
We remind you that the annual bonus is set at up to 10 percent of the increase in the net profit of the organization obtained at the end of the reporting year compared to the previous year, but not more than 12 salaries inclusive.
Attention! The terms of employment contracts of heads of organizations must be brought into compliance with Resolution No. 612 (Part Four of Article 19 of the Labor Code)
Entry into Force
The new procedure for accrual and payment of premiums, bonuses, and remuneration to heads of organizations will apply to the accrual of these payments starting from November 1, 2021.
Changes to the annual bonus will take effect from January 1, 2022.