MECHANISM AND CAUSES OF CALCULATING INDEXATION
Journal Title: Проблеми системного підходу в економіці - Year 2018, Vol 2, Issue 64
Abstract
The article deals with the order of indexation of wages and its consequences for employees and employers. Peculiarities of the mechanism of indexation of payments to employees in Ukraine, the main rules for indexing, and new changes in legislation in relation to the consumer price index are analysed. At the moment, the “month of rising income” came to replace the term “base month”. Not only the expression of the base month but also its meaning has changed. Let’s consider it in more detail. The first question is how to determine the month of increase and when it appears. The month of increase is the month when there has been an increase in tariff rates (salaries), pensions or monthly maintenance, scholarships, social insurance payments. That is, now the base month depends on the date the salary increases (the tariff rate) for a certain position. Consequently, the main factor for the employer will be the staffing of the enterprise. With a lower salary (tariff rate), the base month will not affect indexation. That is, if the tariff rate has increased, then this month becomes the base one, and it calculates the right for indexation. If the wage of the worker increases due to the increase of allowances, surcharges, bonuses, then if the salary for indexing has not changed, this has no effect on the base month as well. We understand that in the event of an increase in wages only at the expense of a permanent surcharge, surcharge, bonus, etc., without increasing the salary, the amount of indexation does not need to be reduced by the size of this increase in wages. Consequently, the employee will pay accrued indexation, calculated on the basis of the last increase in the salary. That is, enterprises independently determine the forms and systems of remuneration, the tariff grid, the system of salary, labour standards, the size of additional payments, allowances, and the order of indexation, in what size and when – not. This mechanism would be appropriate for the employer to index the accountant could not count every month, but from time to time. But first you need to get rid of the entire indexation as a whole, and then increase the staff salary in size larger than the current indexation. And all employees will have one basic month.
Authors and Affiliations
O. M. Bondarenko, I. I. Masiuk
Keywords
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