The portal of discussions of normative-legal acts published a draft presidential decree “On improving the procedure for determining wages, pensions, allowances and other payments”. The draft decree was developed by the Ministry of Finance of Uzbekistan.
The document is adopted in order to improve the procedure for determining wages, eliminate the dependence of conditions between wages, pensions and collection of fines and fees.
According to the draft document, from July 1, 2019 onwards:
- the minimum payout for labor (MPL) will be 577,170 soums;
- base calculating amount (BCA) – 202,730 soums;
- calculating pension indicator (CPI) – 202,730 soums.
The draft decree notes that the MPL is set in absolute amount and at the same time, it is the numerical value of the monthly tariff rate of the first category of the Single payment network (SPN) with a tariff coefficient of “1,0”. In addition, the MPL will be applied in the field of labor relations to determine the amount of salary, allowances, supplements, fees, compensation payments for additional work, food, travel and other types of incentive payments, the size limits used in calculating wages and deductions established by law and other payments dependent on wages.
Also, the MPL will be mandatory for all employers, regardless of the form of ownership and labor relations, as the lower limit of remuneration of employees who have fully complied with the established labor standards.
The BCA will be used to determine the amount of taxes, fees, fines, government fees, scholarships and other payments for services provided by the state, as well as when determining whether a family is in need of social support.
Also, the minimum wage will be mandatory for all employers, regardless of the form of ownership and labor relations, as the lower limit of the remuneration of employees who have fully complied with the established labor standards.
The BCA will be used to determine the amount of taxes, fees, fines, government fees, scholarships and other payments for the services provided by the state, as well as when determining whether a family is socially supported.
“It is established that the BCA is used as baseline values when determining the value of a patent, license and other payments for engaging in a certain type of business activity, the size of statutory and other funds (capital) of organizations, the cost of non-cash paid shares, other securities, the book amount of assets societies, the maximum amount of microcredit and leasing, as well as determination of other financial-economic indicators,” the draft decree said.
In turn, the CPI will be applied to the calculation of pensions, allowances, supplements and compensations applied in the field of pension and social security, as well as relations on labor injury.
If the document is approved by the President, the Ministry of Employment and Labor Relations, together with the Ministry of Finance and the Ministry of Justice, will be requested to submit to the Cabinet of Ministers proposals on bringing the acts of legislation in accordance with the above decree, including revision of the Single Tariff Network on labor remuneration and determination of the size of certain types of benefits, compensation and payments in absolute amount.
Currently, the draft document is at the stage of public discussion. It may be changed or rejected. The full context of the document can be found here.
It should be recalled, on January 18 of the current year, a relevant decree of the Cabinet of Ministers introduced changes to the Single Tariff Network (STN) for labor remuneration. Taking into account changes in tariff coefficients of the STN, the MPL in the republic amounted to 577,172.31 soums.
