15 December 2017: The Constitutional Court of the Russian Federation ruled that compensatory and incentive payments are not to be included in the minimum wage. It made this verdict on December 7 in the case on the verification of the constitutionality of the provisions of Articles 129, 133 and 133.1 of the Labor Code.
The case itself was considered by the Constitutional Court on November 14. The case hearing happened following the complaints of four Russian citizens working in Karelia, the Altai Territory and the Irkutsk region. They were dissatisfied with the system of calculating their salaries, in which the “northern” allowances are included by employers into the minimum wage.
Trade unions challenged the constitutionality of these articles in the sense that they allow employers to interpret the law at their discretion. And to calculate wages either as “the minimum wage plus “northern “, or as “northern ” within the minimum wage.” On November 14th, the applicants were represented by two persons in court: lawyer from the Arkhangelsk region, Vladimir Tsvil and the FNPR secretary, PhD in law, Nikolai Gladkov.
The court ruled that regional premium and allowances (Article 316, 317 of the Labor Code of the Russian Federation) are to be accrued to actual earnings. Even not to the minimum wage. It is added to the remuneration package, which, as is known, includes fixed salary plus incentive and compensation payments. To all this remuneration, to the total amount, the regional premium and relevant percentage is accrued. The applicants complained exactly about this issue, – explained the FNPR secretary, Nikolai Gladkov.