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Types of compensation payments – to whom statutory law is applicable, amounts and accrual procedures

This WordPress post outlines the types of compensation payments that are subject to statutory law, the amounts of such payments, and the procedures for their accrual. It explains that, depending on the type of payment, eligibility requirements and payment amounts may vary, and covers the four main types of payment: basic pay, overtime, vacation pay, and bonus pay. It also outlines the tax implications for such payments, and addresses the procedures for accrual. This article provides a comprehensive overview of payment types, amounts, and accrual procedures subject to statutory law for employers, ensuring that they understand their obligations and are able to provide their employees with the necessary entitlements.

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Compensation payments are paid to many citizens in order to recover costs incurred due to conditions associated with their work. Their size is determined by the employment contract and Russian law. Social benefits are paid to citizens who find themselves in a difficult life situation and need support. They are allocated from the state budget, appointed by subordinate acts or decrees of the President of Russia and controlled by the federal compensation service.

What are compensation payments?

According to the definition, compensatory payments are a system of monetary accruals, which is aimed at supporting citizens. This may be a certain circle of people who need help:

  • young mothers;
  • disabled people;
  • victims of technological disasters;
  • workers and residents of the Far North and other categories.

Employees of enterprises receive compensation payments from the employer if:

  1. their working conditions change – moving, working at irregular times;
  2. they are subject to increased requirements – the combination of several posts, work in difficult conditions.

Types of Compensation

There is a classification of payments according to the nature of the frequency: one-time, annual and once a month. Recipients of compensation from the state can be:

  • victims of technological disasters (Chernobyl NPP, MPO Mayak);
  • caring for the disabled;
  • mothers / other relatives raising children under 3 years old;
  • students who went on academic leave;
  • unemployed wives of the military;
  • family members of the dead military;
  • residents of the far north.

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Labor Code Compensation

Please note: all compensation payments are made from the budget of the employer. Labor legislation describes a system of payments to employees whose employment has changed at the request or fault of the employer. With regard to compensation payments:

  • direction to work in another region;
  • business trips;
  • obtaining education in a working profile;
  • termination of the employment contract for reasons beyond the control of the employee;
  • the appointment of an employee for public and public works;
  • failure to provide on time the work book at the time of dismissal.

Social Security Payments

The law determines that the social security system is responsible for compensation:

  1. Child care is given to a family member (wife, husband, guardian) who raise children under 3 years old.
  2. Persons who are forced to care for disabled family members.
  3. To victims of industrial accidents.
  4. Military personnel and members of the family of victims of execution.
  5. Internally displaced persons (one-time move and monthly allowance).
  6. Disabled people (compensation in return for treatment costs, in case of cancellation of the car).
  7. Residents of the Far North (compensation for travel to places of rest and payment at the time of moving to the European part of the Russian Federation).

Compensatory and incentive payments to public sector employees

Employees of state institutions receive additional compensation allowances:

  • when working in hazardous production or in hazardous production conditions;
  • when an employee is invited to combine several posts;
  • when working overtime, during off hours, weekends and holidays;
  • for the increase in the amount of work prescribed in the state contract;
  • when working with state secrets.

Incentive payments are made if the employee of the state structure ensures a high quality of work, work is done overtime or the employee’s activity leads to significant savings. The size of incentive payments and the procedure for their accrual is consistent with the trade union organization. Bonuses are also accrued for continuous successful experience and continuous improvement of qualification categories.

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When moving to another location

If the organization sends employees to work in another region or city, it will be reimbursed for all costs associated with moving or arranging at a new workplace. This is normalized by Art. 169 of the Labor Code of the Russian Federation. When referring an employee to a new place, the employer must understand that he pays for the move not only of the employee, but also of the family members. The compensation procedure is established by the employment contract. Agrees:

  • ticketing;
  • type and cost of service housing.

Reimbursement of expenses related to business trip

When an employee is sent on a business trip related to work activities, the employer compensates for the cost of transport services, payment of per diems. He is obliged to provide a hotel room or office apartment during his stay at the place of business trip. In legislation, the payment of compensation for travel expenses is explained in Section 168 of the Labor Code..

Compensation in the performance of state or public duties

Article 170 of the Labor Code of the Russian Federation states that an institution is obliged to save a place, a salary, or to pay compensation to an employee if he is sent during working hours to carry out public assignments and duties. It:

  • work in self-government bodies and in elected government posts;
  • activities in trade union bodies;
  • participation in the labor dispute committee;
  • dismissed from work to work in the public service (jury or lay judges);
  • performance of military duties;
  • work as rescuers, consultants and emergency specialists.

Students on academic leave

There are situations when students are forced to go on academic leave for medical reasons or under the circumstances (birth of a child, conscription in the army, serious illness or life situation). Although the scholarship is not awarded during the academic leave, the state has provided monthly compensation in the amount of 50 rubles (Government Decision No. 1206 of 11/03/1994).

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Compensation for unused vacation

The labor legislation states that each employee should be granted annual paid leave. For various reasons, an employee may refuse to use leave and receive compensation for unused leave, which is regulated by Art. 140 of the Labor Code of the Russian Federation. The same applies to budget organizations..

Dismissal payments in connection with liquidation

During the liquidation procedure, all employees are dismissed, not excluding those who are currently on sick leave or on parental leave. At the same time, the employer provides employees with the following types of compensation payments

  • a payment for the period when the employee performed his duties (for the month of dismissal);
  • compensation for unused, main and additional vacation periods;
  • payments for early termination of the contract;
  • severance pay.

Who is eligible for social security compensation?

There are a number of people who are paid compensation by the state – the so-called social form of payment. These include:

  • people working and living in the Far North;
  • university students on compulsory academic leave;
  • persons who must care for a disabled family member and therefore not going to work;
  • citizens who have lost their health due to technological disasters (liquidators of the Chernobyl nuclear power plant living in the territory of the Mayak NGO).

Social Security Compensation

In some cases, the state assumes the obligation to financially support certain segments of the population, paying them monthly, annual or one-time compensation payments. They are in essence similar to social benefits, but not identical to them. Benefit payments are much higher, and federal legislation is their normative basis. Social compensations are approved by acts and Orders of the Government of the Russian Federation. The essence of compensation is compensation for damage caused in connection with:

  • natural phenomena;
  • disasters;
  • difficult life situations.

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Payments for children

The most common payment for children is allocated to women or men who are at home to care for a child until they reach 3 years of age, which is prescribed in Decree of the Government of the Russian Federation No. 1110 of May 30, 1994. The payout is 50 rubles. It is noteworthy that from that moment the amount of compensation has never been indexed. Compensation is paid either by the employer of the parent (or another person) or by the state if the citizen receiving the benefit does not officially work anywhere.

Disabled Care

When the family has a disabled person of the first group, or a person over 80 who needs outside care, compensation is due to a family member who assumes the responsibilities of daily service, and therefore cannot physically go to work. The amount of payment is 1,200 p., Parents of a disabled child receive 5500 p. every month. Such a compensation payment is provided for each disabled family member (disabled person or elderly person).

Payments to pensioners in 2019

At the end of last year, a bill was passed in which annual inflation indexation will be replaced with a lump sum payment of 5,000 rubles. This is due to the problematic state of the Russian economy amid the general economic crisis. The total budget of compensation funds will amount to 221.7 billion rubles. This will affect retirees by age, and those who are entitled to a pension for the loss of a breadwinner, disability, insurance claims, state security. The exception will be pensioners who do not reside permanently in the Russian Federation.

Compensation for unemployed able-bodied persons

Able-bodied people who can’t go to work, because they serve and care for disabled family members (elderly, disabled), have every right to pay each month in the amount of 1200 p. (Decree of the Government of Russia No. 343 06/04/2007). Those who are receiving unemployment benefits are not entitled to this benefit. When going to work, compensation will not be paid.

Compensation for internally displaced persons

Law of the Russian Federation No. 4530-I of February 19, 1993 determines financial assistance to persons who were forced to leave the house due to certain reasons (war, catastrophe, hostile environment). The following compensations are granted to persons who have received official status of an internally displaced person:

  • one-time cash allowance;
  • compensation for the purchase of tickets and transportation of property;
  • provision of temporary housing

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Compensation payments of Rosgosstrakh

Now it is possible to receive compensation under child and life insurance contracts concluded during the pre-perestroika period. After the collapse of the USSR, these insurances became invalid, however, now you can provide the necessary paper evidence and receive compensation in multiple amounts – it depends on the balance of the contract until January 1, 1992.

Persons born before 1945 receive a payment in the amount of three times the amount of the deposit balance, after 1945 – twice. Compensation can be received by the heirs of the insured person. The following documents are required for application:

  • copy of the significant pages of the passport (2, 3, 5, 18-19);
  • insurance certificate or certificate of employment from which contributions were accrued.

Learn about the online service for calculating taxes and reporting for employees.

Video about the amount of compensation payments to certain categories of citizens

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Comments: 5
  1. Harper

    Could you please provide more information about the types of compensation payments mentioned in this text? I would like to know to whom statutory law applies, what the typical amounts are, and how the accrual procedures work. Thank you!

    Reply
  2. Oakley

    What are the types of compensation payments that are regulated by statutory law? Can you provide information on the recipients of such payments, as well as specific guidelines regarding the amounts and procedures for accrual?

    Reply
  3. Oakley

    What are the specific types of compensation payments that fall under statutory law? Additionally, could you provide information about the recipients of these payments? I am also curious to know the amounts allocated for each type of compensation and the procedures for accruing these payments.

    Reply
    1. Owen Wagner

      Compensation payments falling under statutory law can include workers’ compensation, unemployment benefits, and social security disability payments. Workers’ compensation provides financial support to employees who are injured or become ill while on the job. Unemployment benefits offer temporary assistance to individuals who have lost their jobs through no fault of their own. Social security disability payments are for individuals who are unable to work due to a disability.

      The recipients of these payments vary depending on the specific program. Workers’ compensation is typically received by employees who are injured at work, unemployment benefits are given to individuals who have lost their jobs, and social security disability payments are for individuals who are unable to work due to a disability.

      The amounts allocated for each type of compensation can vary based on factors such as the individual’s income, severity of their injury or disability, and length of unemployment. Procedures for accruing these payments generally involve filing a claim with the appropriate government agency, providing necessary documentation, and meeting specific eligibility requirements outlined in the respective laws and regulations. It is recommended to consult with legal or financial professionals for detailed guidance on navigating the process for each type of compensation payment.

      Reply
  4. Mason Watson

    Could you please provide more detailed information about the types of compensation payments? Specifically, I am interested in knowing to whom statutory law applies in terms of eligibility for these payments. Additionally, could you outline the different amounts of compensation and the procedures for accruing these payments? Thank you.

    Reply
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