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Changes to the rules on calculating statutory minimum remuneration  

Some remuneration components such as jubilee awards, overtime allowances, night-time work allowances and retirement severance cannot be included as part of the minimum remuneration. However, on 1 January 2020, a significant amendment to the rules on calculating the payment of the statutory minimum remuneration has come into force. According to the new rules, employers should no longer include service allowance which may be granted to the employees in connection with length of their service for the given employer as well. Bearing that in mind, we recommend that employers familiarise with the new rules on calculating the payment of the statutory minimum remuneration and adopt necessary amendments to its system for calculating employees’ remuneration if they are provided with a service allowance.