What is a tariff category, a tariff coefficient?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Wages - this is one of the most controversial categories of payments to employees of the enterprise. In practice, there are several main methods for calculating wage payments. The most popular are the following:

• piecework;
• time-based;
• combined type.

If we talk about budgetary organizations, then the rate is applicable everywhere, which is also supplemented by incentive payments and bonuses. In order to understand how the salaries of state employees are calculated, it is necessary to determine what the tariff scale and tariff category are. The tariff rate coefficient by category is used not only in budgetary organizations, many enterprises have such additional tariff coefficients by category.

What is the tariff coefficient and what does it depend on?

The tariff coefficient is a multiplier that is applied to the salary of a first-class employee. This is an indicator that increases the employee's salary, taking into account such indicators as wage category, wagecoefficient. Enterprises usually apply a digit tariff rate, consisting of six digits. Thus, the employee of the first category has the lowest wage rate, and the sixth, respectively, the highest. The tariff coefficient of the 1st category corresponds to the minimum wage, equal to 1, 0.

To apply the tariff system of remuneration, you need to have a table with tariff coefficients. At different enterprises, they may have differences, the tariff coefficient of working categories is determined in the Order on the accounting policy of the enterprise. This is if we talk about a single enterprise. The state has developed a unified tariff scale for workers in the public sector. She has 18 ranks. If we talk about specific figures, it is worth noting that compared to the first, lowest, rank 18 has a tariff coefficient of 4.5.

Designation of the tariff scale

All employees of the enterprise cannot receive wages at the same level, since the level of their qualifications is different, the labor intensity of the work performed by each of them is different. In this regard, it is advisable to apply the tariff scale. What is its main purpose? The main purpose of applying such a system of payment is to distribute workers into categories depending on the level of specialization and qualifications of the work they perform.

Each worker should receive a salary in the amount corresponding to his qualifications. Remuneration of labor in the tariff method provides that an employee of a certain category mustperform work that corresponds to his category in complexity. It happens that an employee of a lower rank is involved in work that a specialist of a higher level should perform. In those situations where he does this successfully, he, accordingly, can be assigned a higher rank.

Payment by the tariff method is a good motivation for employees. After all, the higher the rank, the higher the salary level.

Determination of the tariff category and its features

What is a tariff category? The tariff coefficient is an integral part of the category according to qualification characteristics. It characterizes the level of complexity of the work. The tariff category (tariff coefficient) is one of the most important components of the tariff scale. How is it defined? It can be viewed in a special directory of characteristics of workers by skill level.

In the pay scale, the countdown always starts with first-class workers. They tend to have the lowest salary and skill levels. Usually, the salary level of workers of the first category corresponds to the minimum wage level determined at the state level.

Types of tariff scales

It is interesting that one enterprise can develop several pay scales that apply to categories of workers with different working conditions. For example, if we consider a machine-building enterprise, then there may be a regular tariff scale and a “hot” one. The second type of grid will apply to workers,who work in workshops with harmful working conditions.

Conditions for obtaining the highest rank

To obtain the highest level of qualification category, you must have the knowledge and skills necessary to carry out work at the highest level of qualification. In addition, there are other mandatory conditions that allow an employee to receive a higher qualification level:

• perform top-level work for three months, and do it successfully, that is, without rework and violations;
• immediately before receiving the highest rank, you need to pass a test to check the level of qualification.

Who determines the level of qualification? The owner of the enterprise, as well as a representative of the trade union organization of workers, should participate in this process.

Who can get a raise? The level of the qualification category can be increased in cases where the employee strictly and clearly follows the norms and requirements that are defined at the enterprise. The labor discipline of the worker must be positive.

If he strictly violates the rules of conduct at the enterprise, the law or other certain norms, then his rank may also be reduced. Such measures are applied as liability for various violations.

The importance of the tariff system

Tariff category, tariff coefficient and tariff rate are used when planning the payroll at the enterprise. This allowsdetermine the level of earnings of certain categories of workers. Consider situations where it is important to know the level of the tariff rate for certain categories of workers:

• when budgeting the basic salary for employees by category;
• during the distribution of the wage fund by categories of workers;
• when planning rate hikes.

An example of the tariff scale is shown in the table.

Indicator	Meaning
Tariff category	1	2	3	4	5	6
tariff factor	1, 0	1, 2	1, 4	1, 6	1, 8	2, 0

Tariff wage system has advantages and disadvantages. But its use at the moment is the best option not only in the public sector.