The Committee for Labour, Employment and Social Protection has clarified the procedure for increasing the remuneration of employees in accordance with the growth of labour productivity.

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

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

The provisions of clause 1 of Resolution No. 744 regulate the increase in remuneration of labour for employees of state organisations and organisations in which the state's ownership share in the charter capital exceeds 50 percent (hereinafter referred to as state organisations), depending on the growth of labour productivity.

For reference:

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

Resolution No. 243 establishes that in state organisations and organisations in which the state's ownership share in the charter capital exceeds 50 percent (hereinafter referred to as state organisations), the remuneration of labour shall be increased provided that the ratio of labour productivity growth to nominal accrued average monthly wages is greater than 1.0.

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

to change the remuneration of labour and (or) the wage structure 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 wage indexation, improvement of the wage structure of employees, etc., provided that the overall level of remuneration established by local legal acts and employment contracts is maintained.

to increase the remuneration of employees of a separate subdivision with its own balance sheet, provided that the growth rate of labour productivity and the nominal average monthly accrued wage exceeds 1.0 in this separate subdivision.

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

When calculating labour 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 labour 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 labour productivity calculation indicator once during the calendar year in agreement with the higher authority (organization).

For reference:

Previously, changing the labour productivity indicator during the 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 provisions 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 their own balance sheets, as well as maintaining employee motivation in ensuring the growth of labour productivity.

Source: vitebsk-region.gov.by