What is the district factor

District factor - specific measure that determines the degree of wage increases or other benefits associated with employment in difficult conditions. In what cases does it apply?

District factor - a multiplier used in the recalculation of wages and other payments to individuals working in severe climatic conditions. The practice of application of the regional coefficient was formed in the USSR, but its use is carried out in modern Russia.

The concept of the regional factor and the history of its origin

The concept of the regional coefficient was introduced in the Soviet Union in 1964: he was used to recalculate the wages of employees of organizations engaged primarily in the oil and gas industry and has spread to part of the territories of the Yamalo-Nenets and Khanty-Mansi national district. Today the list of areas eligible under the regional factor is much wider: in addition to the far North it includes part of the Northern territories of European part of Russia, and some regions of the Urals, Siberia and the Far East. However, the magnitude of the regional coefficient in these areas are differentiated, depending on the actual complexity of the climatic conditions. So, today the range used in Russia regional factors ranging from 1.1 to 2.0.

A regional coefficient is applied to all wages in the region, regardless of their size. In addition, the specified ratio is not only used for recalculation of wages but also in the calculation of other payments related to its size, for example, vacation and the like.

The legislative framework for the application of regional factor

Despite the fact that a significant part of the territories of the Russian Federation is subject to regional coefficients, the legal framework of this instrument today remains uneven and requires further elaboration. So, the main normative-legal act regulating the issues of application of regional factor is the RF Government Decree of 17 April 2006 "On the regional coefficients used in the establishment of labour pensions and pensions for state pensions to those living in the far North and equivalent areas, and in areas with difficult climatic conditions". He, in turn, legitimitely used as the legal basis of the calculation of regional factors not only of regional normative legal acts, but also the laws of the Soviet era. As a result, in the present moment on the territory of the Russian Federation, there are several dozen different documents that define the sizes of regional factors in certain regions.