WHEN THE COMPANY SHOULD PAY THE BONUSES?
Apr, 28 2017
According to the amendments to the Labor Code, since October, 03 2016 employers are obliged to pay the salary not later than 15th day of the month, following the month of payment, and advance payments not later than 15 days after salary payments.
For breaching the terms for salary payments employer will pay a forfeit in the amount from 1/300 to 1/150 of Central Bank rate for the amount of non-paid salary, besides employer may be fined of up to 100 000 Rub (about 1400 Euro).
But are the terms for salary payments being applied for the terms for bonus payments, especially for quarter and annual bonuses. Many companies are paying annual bonuses in accordance with the financial results of the past year, and it may be very difficult to count them within 15 days.
The Ministry of labor clarified that this rule does not apply for bonus payments. According to the labor code, the procedure for bonus payment and additional payments shall be stated in the collective agreements and bylaws.