Changes to Bonus Payment Regulations
Amendments to the Labor Code have introduced new rules for how bonuses are awarded to employees. Under the revised version of Article 135 of the Russian Labor Code, any established bonus system must now clearly define the type of bonuses (annual, quarterly, one-time, etc.), their amount or a transparent method for calculating them, the conditions for awarding them (including performance, efficiency, duration of employment, and disciplinary factors), as well as the timing and procedure for payment.
Employers can no longer rely on vague language like “bonuses may be paid at management’s discretion.”
Additionally, if a bonus is reduced due to a disciplinary sanction, it may only apply to bonuses accrued during the period in which the sanction was imposed, and the employee’s monthly salary cannot be reduced by more than 20% as a result.
Where a trade union exists, such terms must be agreed with the union’s elected body.
