On September 7, 2019, the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated September 6, 2019, No. 743 "On additional measures for the regulation of labor relations in the labor market" (hereinafter referred to as "Resolution No. 743") entered into force.
Resolution No. 743 establishes the following:
- the amount of bonuses according to regional wage coefficients;
- the minimum duration of additional labor leave for workers engaged in labor activities in areas with severe and unfavorable climatic conditions.
|Names of districts and areas with difficult and unfavorable climatic conditions||The amount of the salary increment according to the regional wage coefficients (in %)||Minimum duration of additional labor leave (working days)|
|Republic of Karakalpakstan|
|Muinak (including Muinak city) and Kungrad districts (except for Kungrad city)||30||3|
|Karauzyak, Kegeli, Kanlykul, Nukus, Takhtakup, Chimbay, Shumanai districts, Kungrad city||20||2|
|Takhiatash and Khojeyli districts||15||1|
|Beruni, Turtkul and Ellikkala districts (except for their district centers), Nukus city||10||1|
|Uchkuduk and Zarafshan cities||60||6|
|Tamdyn and Uchkuduk districts||50||5|
|Kanimekh, Kyzyltepa, Navbahor, Nurata, Khatyrchi districts||30||3|
|Karmana district, Navoi city||20||2|
|Chorkesar village of the Pap district||20||2|
|For workers of all economic sectors and territories working in mountainous regions:|
|at an altitude between 1,500 and 1,700 meters above sea level||10||1|
|at an altitude between 1,701 and 2,000 meters above sea level||15||2|
|at an altitude between 2,001 and 3,000 meters above sea level||30||3|
|at an altitude of over 3,000 meters above sea level||40||4|
Regional coefficients for wages and additional leave for work in areas with unfavorable natural and climatic conditions of work are mandatory for all organizations, regardless of their organizational and legal forms.
I. Salary increment as per regional wage coefficients
The amount of salary increment is calculated by multiplying the corresponding coefficient established for a given region by the level of wages.
The amount of salary increment is calculated based on the amount of wages, capped at, until September 1, 2019, four times the minimum wage1, and from September 1, 2019, 1.4 times the minimum wage established in accordance with the legislation of the Republic of Uzbekistan and effective at the beginning of the month for which the salary increment is calculated.
From September 2019, if the employee's salary exceeds 1.4 times the minimum wage , then the amount of the salary increment is calculated from the part of earnings equal to 1.4 times the minimum wage.
In other words, if the employee's salary exceeds 1.4 times the minimum wage, then the amount of the salary increment is calculated based on the amount of 1.4 times the minimum wage. If the employee's salary does not exceed 1.4 times the minimum wage, then the amount of the salary increment is determined based on the employee's wage.
When determining the amount of the salary increment, it must be taken into account that the salary according to which the amount is calculated includes payments for tariff rates and piece-work rates, bonuses, salary increments and extra payments provided by the organization's remuneration system, except for payments excluded from the average earnings.
Calculation of the amount of salary increment for employees who have two different amounts of salary increments
For employees in regions (districts) where there are two different amounts of salary increments (for example, according to the regional wage coefficient and for works in high mountain regions), they should be added together.
Calculation of the amount of salary increment for an incompletely worked month
If an employee has not worked for a full month in a region (district) with unfavorable working conditions, the amount of salary increment is calculated in proportion to the time worked within that month.
If an employee works within a month in areas and districts where various amounts of bonuses are established:
- if it is possible to record the time worked in the respective region (district), the salary increment is set proportionally to the time worked in the respective territories;
- if it is not possible to record working time, the salary increment is established according to the location of the organization.
Calculation of the amount of salary increment taking into account quarterly bonuses
Upon the payment of a quarterly bonus, the amount of salary increment is calculated as follows:
- the amount of the quarterly bonus is distributed proportionally per each month of the quarter and is added to the salary and other payments for the corresponding month;
- for the amounts received for each month in the usual manner, the coefficient established for the particular region are applied;
- from the total amount of the employee's earnings for the quarter determined by the calculations, the amounts paid as salary increments are excluded and the difference is paid.
In case of multiple employment, salary increments are paid only at the main place of work.
When traveling to a region (district) with unfavorable natural and climatic conditions for a period of more than one month, an employee should be paid a salary increment during his stay in the territory for the amount established for that region.
The salary increment is paid regardless of the payment of reimbursement of expenses during business trips stipulated by labor legislation.
Salary increments are included in the organization's payroll fund and employee wages and should be taxed in the manner prescribed by tax legislation.
II. The minimum duration of the additional labor leave
The minimum annual additional leave for work in areas with difficult and unfavorable natural and climatic conditions is granted in full only if an employee has worked a full working year.
If the employee has not worked a full working year, the duration of the additional leave for work in areas with difficult and unfavorable natural and climatic conditions is determined in proportion to the worked time by dividing the total amount of the additional leave by 12 and multiplying by the number of full months of work.
The total duration of labor leave, including basic and additional leave, should not exceed 48 working days.
1 According to section 1 (paragraph two) of the Decree of the President of the Republic of Uzbekistan dated May 21, 2019, No. UP-5723 "On improving the procedure for determining the amount of wages, pensions and other payments", dated September 1, 2019, the minimum wage was fixed at 634,880 soum.↩
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