Wages of employees is the payment in money or in kind paid by employer to employees for work carried out during the reporting period. It is calculated on the base of calculated amount, i.e. including taxes and other deductions.
Wages cover all kinds of earnings, as well as prizes, additions and social privileges calculated in cash or in kind independently of financial source. It includes the following kinds of prizes and additions:
- prices by the day for carried out work (worked off time), tariff wages, post wages or interests on income, wages calculated on shares from income;
- incentive payments (rewards, additions to tariff rates and wages);
- compensation payments according to work regime and labour conditions (wage payments caused by region regulations, additional payments for work in special conditions, daily allowances paid during business trip, payments for work in day offs and holidays etc.);
- payment for worked off time in accordance with legislation (for example payments for vocations given every year and additional vocations, pecuniary compensation for unused vocations, payments for idle time without fault of employees and etc.);
- interest or commission rates;
- wages paid to employees in the system of improvement of qualification and retraining of staff out of the work place;
- payment as wages with reduced prices for production of deteriorated products in case of confirmation of employee's guiltlessness;
- wages paid to pupils and students who go for field experience in enterprises;
- payments for persons attracted to the enterprises on the base of special contracts, as well as for persons provided with job by substitutions from other enterprises and organizations;
- compensations for workers of buffets and canteens because of rising of meal prices, as well as compensations given to children in pre-school institutions and for children which placed in sanatoriums and health-care camps.
Minimum wages - is the minimal salary for all employees approved by the state for fixed period. Minimum wages is regularly revised during the year for the purpose to improve welfare of citizens and strengthen social protection of low-income population.
Average monthly nominal wages and salaries are defined by dividing the calculated wages and salaries fund (including taxes) into number of employees for calculation of average quantities of wages and salaries (excluding persons are at maternity leave and leave on adoption of the infant at maternity hospital, child rearing leave, employees are at addittional leave without maintenance of wage due to study at the educational institutions and employees are at unpaid leave in group form not because of fault of employer).
Real wages reflects purchasing power of nominal wages. Index of real wages is determined by division of nominal wages index into consumer price index.
Expenditures for maintenance labour force include: expenses on wages, as well as additions to it (in cash and in kind), dwelling expenses of employees of enterprises according to legislation, value of meals and foods, various healthcare activities. They also include expenses on payments to social insurance funds, expenditures for professional training and retraining, provision of cultural and welfare facilities and taxes considered as labour cost (for example, involving of foreign labour force, renovating of territory and etc.).