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About salary indexation requirements

In connection with the rise in consumer prices for goods and services, the Labor Code of the Russian Federation provides an increase in the level of the real content of wages as part of indexation.

According to the position of the Ministry of Labor, indexation is understood as an increase in the wages of workers to the level of inflation. In this case, the employer is also entitled to decide on the increase in the amount of wages to certain categories of workers independently.

According to the position of the Ministry of Labor of the Russian Federation and judicial practice, wage increases may apply to all payments established by the employee, or only to some of them (for example, only salary).

The Supreme Court of the Russian Federation indicated that employers who do not receive budget funding are free to set the conditions for the implementation of indexation:

  • Indexing frequency;
  • The procedure for determining the value of indexation;
  • The list of payments subject to indexation – taking into account the specific circumstances, the specifics of the activity and the level of solvency of the company.