The procedure for establishing and applying the minimum wage is changing in Belarus
From August 4, 2014, the Law of the Republic of Belarus of 24.04.2014 No. 134-Z "On Amendments and Additions to Certain Laws of the Republic of Belarus on Minimum Wage" comes into force, in accordance with which Article 59 of the Labor Code of the Republic of Belarus and the Law of the Republic of Belarus of 17.07.2002 No. 124-Z
From August 4, 2014, the Law of the Republic of Belarus of 24.04.2014 No. 134-Z “On Amendments and Additions to Certain Laws of the Republic of Belarus on Minimum Wage”, in accordance with which Article 59 of the Labor Code of the Republic of Belarus and the Law of the Republic of Belarus of 17.07.2002 No. 124-Z “On the establishment and procedure for increasing the minimum wage” are set forth in a new edition.
Thus, Article 59 of the Labor Code of the Republic of Belarus is set forth in the following edition:
“Minimum wage (monthly and hourly) is a state minimum social standard in the field of labor remuneration, which the employer is obliged to apply as the lowest limit of remuneration for employees for work under normal conditions during normal working hours when performing the duties of an employee arising from legislation, local regulatory legal acts and the employment contract. The procedure for establishing and increasing the minimum wage is determined by legislation”.
The new version of Law No. 124-Z, which comes into force on August 4, 2014, defines that the monthly minimum wage is set by the Council of Ministers of the Republic of Belarus annually from January 1, taking into account the ratio of the monthly minimum wage and the minimum consumer budget, as well as other indicators. The hourly minimum wage is determined by the employer by dividing the monthly minimum wage by the ratio of the calculated standard working hours for the calendar year, established by the employer for the respective categories of employees in accordance with labor legislation, and the number of months in the calendar year.
The new version of Law No. 124-Z also enshrines the norm that the monthly minimum wage during the year is subject to indexation in the manner prescribed for the indexation of income received from budget sources, in accordance with the legislation on the indexation of population income, taking into account inflation, as well as the employer's obligation to change the hourly minimum wage in case of changes in the monthly minimum wage (including due to its indexation).
A collective agreement (agreement) may establish a different monthly minimum wage, but not lower than the monthly minimum wage established in accordance with Law No. 124-Z.
The new version of Law No. 124-Z provides that if the amount of accrued wages for an employee is lower than the minimum wage (monthly and hourly), the employer is obliged to make a supplement up to the minimum wage (monthly and hourly). When determining the amount of such supplement, payments of a compensatory nature and payments not related to the employee's performance of duties arising from legislation, local regulatory legal acts, and the employment contract are not taken into account in the employee's accrued wages. The list of these payments is established by the republican state administration body that carries out state policy in the field of remuneration.
Art. 9 of the new version of Law No. 124-Z enshrines the norm that disputes on issues of applying legislation on the establishment and procedure for increasing the minimum wage are considered by the labor dispute commission and (or) the court.
Deputy Head of the Department for Supervision of Labor Legislation Compliance
Vitebsk Regional Department of the State Labor Inspectorate Department Galina GALA