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Employer labor costs. Composition of labor costs of enterprises and organizations - Economic statistics (Yakovleva A.V.)

Labor occupies a central place in the production of any activity and is one of the components of production resources. Only labor power, living labor create surplus value. It is this circumstance that predetermines the attitude towards rational use labor resources, because without people, without a team, there is no organization, and without the right people no organization can achieve its goals.

Accounting for labor costs in the management skills system is presented as part of accounting for production costs and should be carried out in the following areas.
1. Accounting for labor costs by classification groups - the basic salary of production workers engaged in technological operations; labor costs included in overhead costs.
2. Accounting for accruals and deductions from wages due to each employee, accounting various types contributions to extra-budgetary funds.

The purpose of accounting for labor costs is to determine the cost of working time for your activity: the amount of output or the degree of completion of a shift task: reliable calculation of wages; settlements with employees regarding wages; control over the use of wage funds.

Labor costs are not homogeneous, so they are classified to meet management requirements. Any classification should be based on principles characterizing homogeneous phenomena.

In the practice of enterprises, labor costs are grouped by;
types - basic and additional wages;
elements - time-based, piece-rate wages, bonuses, downtime pay, etc.;
for the composition of employees - remuneration for part-time payroll personnel L working under contract agreements;
categories of workers - remuneration for workers, remuneration for a group of employees, from which managers are selected.

This classification is provided for in labor reporting and regulatory documents. For calculation purposes, it was usually supplemented by distribution by cost areas and types of products, and for control and calculation of earnings by structural divisions - by teams, workshops, production, processes, and the enterprise as a whole.

However, the adopted grouping is characterized common features and is of little use for management. For example, it does not contain information on the costs of such management processes as: recruitment, selection and reduction costs; costs of planning and standardizing the number of personnel and labor directly related to management labor resources, etc. (Fig. 9.2).

A detailed classification of costs is primarily needed to identify the causes of their occurrence. In addition, with the transition to a market, enterprises were given broad rights to determine the amount and procedure for remuneration, to apply various compensation and incentive payments, and to provide additional labor and social benefits. Under these conditions, limited differentiation of labor costs cannot satisfy management goals.

Guided by the main goals management accounting, it is necessary to allocate wages included in the cost of production from the wage fund. In the classification of labor costs, in our opinion, attention should be paid to the following items.
1. Labor costs for production workers directly involved in the production process. This includes payment for work at piece rates and rates, and time-based work.
2. Payments of an incentive nature - allowances for the quality of work and excellence, for length of service, remuneration for length of service, based on the results of the enterprise’s work for the year, various types of bonuses related to production activities.
3. Non-productive payments - payment for downtime, for unworked time in accordance with the law, payment for defects not due to the fault of the worker; surcharges for deviations from normal conditions work, for night work, for overtime work, moving to another job that does not correspond (lower) to the worker’s qualifications, etc.
4. Costs of hiring and selection of labor.
5. Costs for rationing and planning of numbers and labor.
6. Costs associated with career guidance, training and retraining.
7. Costs of remuneration of auxiliary workers engaged in equipment repairs and Vehicle, preparation and maintenance of workplaces, included in general production costs.
8. Costs of remuneration of employees associated with the management of production units, included in general production expenses.
9. Costs of training management personnel.
10. Costs for remuneration of specialists and managers involved in managing the enterprise, included in general business expenses.

The proposed grouping of labor costs is more consistent with the purposes of cost accounting and profit calculation, as well as partly with the purposes of controlling and regulating costs. In terms of decision making, the issue of allocation in accounting for future labor costs must be kept in mind.

The procedure for accounting for labor costs consistently reflects the processes of managing labor resources and associated costs (Fig. 9.3).

Generalization of labor costs is carried out on the basis of timesheets and documents for accounting for absenteeism, work orders, shift reports, production sheets, additional payment and simple sheets and similar documents. Direct labor costs are accumulated according to orders based on the cost codes indicated on the primary documents.

In order to compare actually consumed materials and production, some enterprises use combined primary documents reflecting the movement of raw materials and supplies within the workshop. Accounting starts with zero level management, i.e. from the place where the information originated. The primary documents combine reflection of the Arctic and standard consumption of materials, identification of deviations from the existing ones this period standards, operational planning and accounting for the production of good and rejected products by teams, calculating wages for good products delivered to the PDO warehouse, to the workshop storeroom or transferred to another team, another workshop, as well as accounting for the receipt of semi-finished products in warehouses and storerooms and accounting for the movement of semi-finished products inside the workshop.

A combined primary document based on the applied work order is presented on p. 213. Before the start of the shift, the foreman, based on the planned assignment to the teams and technological maps cutting indicates in the middle part of the work order the number of starts on the forks of workpieces, their code, size, name of the material, its product number, weight of the part, standard size of the workpiece.

Piecework remuneration provides for the direct inclusion of costs in the cost of individual orders and processes. However, some labor costs are indirect. In this case, it is impossible to attribute the costs of wages to the staff of production workers paid on a time basis, auxiliary production workers employed in production in auxiliary operations, additional payments to foremen for organizing the work of teams and other types of additional payments to the cost of individual orders and processes.

Some of these costs are classified as general production and general business overheads and are distributed along with them according to the methodology adopted by the enterprise. Part of the costs is allocated to a separate group and distributed between specific types of products, between finished products and work in progress. From these positions, estimated (normative) rates for types of products are developed. The basis for the calculated rate is the number of jobs with time wages, service standards and working time budget, tariff rates and bonuses, and the planned volume of the production program. Due to frequent changes in the base of the calculated rate, many enterprises distribute such expenses in proportion to the direct wages of piece workers according to the percentage prevailing in the reporting month.

In addition to wage costs, the employer bears a number of other costs associated with labor force; on training, recruitment, selection, provision of working conditions, compensation for damage caused to the health of the worker, vacations, contributions to the Pension Fund, to the State Social and Compulsory Health Insurance Fund. This group expenses are also summarized by classification items and distributed either together with overhead costs or in proportion to the calculation base - the wage fund.

For control purposes, production accounting prepares cumulative statements on the execution of cost estimates, where actual expenses are compared with the estimated ones. Separate reports summarize information about defects, downtime, labor movement, and use of working time.

Labor costs are the costs associated with hiring and maintaining a workforce.

Studying the level, structure and dynamics of labor costs has great importance when determining wage policy and solving a whole range of socio-economic problems.

Labor costs can be studied as:

1) the costs of the enterprise in connection with the use of hired labor;

2) labor costs across the national economy.

In the first case we're talking about on accounting for the costs borne by the employer in connection with the hiring and maintenance of the workforce, in the second - on accounting for the costs borne by the state in providing vocational training workers, social programs, etc. In statistical practice, preference is given to the analysis of labor costs made by employers. However, international comparisons require information on government participation in financing these costs.

International standards It is planned to study labor costs using the method of one-time sample surveys once every two years. The program of such surveys involves obtaining information on labor costs by type of activity of enterprises, by industry or by sector of the economy, as well as correlating these data with capital-labor ratio and other characteristics of enterprises.

According to the international standard classification, labor costs include the following cost groups:

♦ labor costs included in the payroll fund: payment for hours worked and not worked, one-time incentive payments and regular payments in kind (for food, housing, fuel);

♦ expenses of the enterprise for providing housing for employees;

♦ expenses for social protection workers;

♦ expenses for professional education workers:

♦ expenses for cultural and community services;

♦ other costs not included in the listed groups, but associated with the use of hired labor (payment for travel to the place of work, issuance of special clothing, travel expenses, etc.);

♦ taxes related to the use of labor (fees for attracting foreign labor, tax on the amount of excess of actual expenses for remuneration of employees compared to their standard value).

Payments from extra-budgetary funds (benefits for temporary disability, pregnancy and childbirth, child care, etc.) are not included in organizations' labor costs.

Characteristics of the efficiency of the use of human labor are indicators of average costs per unit of time worked (average hourly costs) and per employee per month.

Average hourly labor costs are calculated as the ratio of the amount of costs to the number of man-hours worked. The relationship between average hourly and average monthly labor costs can be represented by the following expression:

Where 3 months. - costs per employee per month;

3 hours. - costs per hour worked;

- average actual working day;

- average actual duration of the working period.

When analyzing labor costs, it is advisable to determine the cost per 1 ruble. products produced, as well as the dynamics of this indicator.

Questions and tasks

1. List the systems and forms of wages.

2. List the elements that make up wages and social benefits.

3. Name the types of wages calculated for different
units of working time and their relationship.

4. What indicator is used to calculate the relationship between growth in labor productivity and wages?

5. What is the importance of studying labor costs? Bring
classification of these costs.

6. What is the significance of performance trend mapping?
labor and wages?

Solution typical tasks

Task 3.4.1. In the region, the average salary in March was 2,900 rubles, and in April - 3,050 rubles. Consumer prices increased by 1.5% during this period.

Determine the dynamics of nominal and real wages .

(105,17%); (103,6%);

Solution.

Task 3.4.2. How the workers' wage fund has changed industrial enterprise, if the average wage increased by 5.0%, and the number of workers decreased by 2.5% compared to the base period?

1. Employer's labor costs, essence, composition and indicators used in assessing labor costs

Labor costs of enterprises (employers) are the sum of remunerations for work performed and additional expenses incurred by enterprises and organizations (employers) for the benefit of employees.

Labor costs are an important expense item both in terms of amount and significance, but it is necessary to note the inconsistency of this category of expenses from the point of view of the employer and the employee.

For the employer, these costs represent the labor costs that he can afford to ensure that the means of production consumed in the production process are reimbursed and the planned amount of profit is received. If the price of labor offered by the employee, taking into account the number of personnel hired, falls within the maximum permissible amount of labor costs or is lower than it, then the employer will agree to the proposed price. If this price exceeds the maximum permissible amount of labor costs, then the employer will seek to reduce the price offered by the employee.

For employee the most important factor, forming his position in relation to the price for his work, is the cost of subsistence and their composition, which in turn depends on a number of conditions: the historical level of consumption of goods, the cultural development of society, climatic and other factors, national characteristics, religious preferences and restrictions, etc.

When considering an organization's labor costs, it is customary to distinguish between direct and indirect costs. Direct costs include wages, social benefits and services, and the cost of hiring and training personnel. Indirect include social taxes and social contributions. If the first group is manageable by the enterprise, then the second group represents the norms established by the state, which the enterprise can manage only within the framework limited by the relevant regulations.

According with ILO classification It is recommended that the attribution of certain employer costs to labor costs is based on two criteria: on the one hand, these costs must be the actual costs that the employer bears when using hired labor, on the other hand, the “benefit of workers” criterion must be met. Thus, this classification is based on both the employee's income and the employer's expenses. The International Standard Classification of Labor Costs includes 10 main cost groups. Moreover, the first four groups (payment for time worked, payment for unworked time, bonuses and incentives, payments in kind) characterize the direct cost of labor (unlike other groups, which can be considered indirect labor costs).

I. Direct wages:

1.1. The basic salary of hourly workers (including bonuses for responsibility, additional payments for dirt, danger and inconvenience, monetary compensation for food, sandwiches, etc., payments under the guaranteed salary system, additional payment at the cost of living and other regular additional payments considered as direct wages and salaries);

1.2. Incentive additional payments to time workers;

1.3. Earnings of pieceworkers (excluding overtime surcharges);

1.4. Additional pay for overtime work, night shifts and weekend work.

II. Payment for unworked time:

2.1. Annual leave, other paid leave, including long service leave;

2.2. Public and other recognized holidays;

2.3. Other paid time away (for example, birth or death of family members, marriage of employees, functions of a nominal position, trade union activities);

2.4. Severance pay, final settlement, where they are not considered a social security expense (otherwise they qualify under clause VI (V).

III. Premium and cash rewards:

3.1. End of year bonus and seasonal bonuses;

3.2. Profit sharing bonuses;

3.3. Additional vacation pay in addition to regular vacation pay and other bonuses and cash rewards.

IV. Food, drink, fuel and other payments in kind.

V. Cost of housing for workers provided by employers:

5.1. The cost of housing - property of the institution;

5.2. The cost of housing that is not the property of the institution (subsidies, subsidies, etc.);

5.3. Other types of housing costs.

VI. Employers' social security costs:

6.1. Statutory social security payments (under programs covering: old age, disability and survivors; illness, maternity; work-related injuries; unemployment; large-family benefits);

6.2. Payments under private programs social security and social insurance collective agreement, contract or optional (under programs covering: old age, disability and loss of a breadwinner; illness, maternity; work injuries; unemployment; large-family benefits);

6.3. (a) Direct payments to employees related to their absence from work due to illness, maternity or work injury to compensate for loss of earnings; (b) other direct payments to employees treated as social security benefits;

6.4. Cost of nursing and medical care;

6.5. Severance pay and final settlement where it is considered a Social Security expense.

VII. The cost of professional training (including also tuition fees and other payments for the services of instructors from outside, educational institutions, for educational material, reimbursement of training fees to workers, etc.).

VIII. Cost of cultural and community services: other than wages and salaries for personnel providing services, for example, depreciation of repairs and maintenance of buildings and equipment and other costs, minus subsidies, tax discounts, etc., received from government authorities and from workers. Investments made during the year are excluded.

8.1. The cost of maintaining a canteen at the enterprise and other food services;

8.2. Cost of educational, cultural, recreational and related facilities and services;

8.3. Subsidies to credit unions and expenses for similar services for employees.

IX. Other labor costs.

X. Taxes considered as the cost of labor.

Labor costs not related to the consolidated groups listed in the classification are shown in a separate group as other expenses. It is recommended to include the following costs associated with the use of hired labor:

Travel expenses per time business trips(without days);

Reimbursement of expenses associated with transfer, referral and employment in other areas;

The cost of issued workwear, safety shoes, etc.

At the same time, the issue of classifying expenses such as travel expenses, special clothing and some others into consolidated group IX is controversial, since it is argued that these costs are on the border between labor costs and overhead costs of enterprises.

Russian classification labor costs, which is used in the Russian survey, differs from the International Standard Classification not only in the names of sections, but also in cost elements. An enterprise's labor costs include the amount of remuneration in cash and in kind for work performed and additional expenses incurred by enterprises (organizations) during the year.

Labor costs consist of the following components:

1. Payment for hours worked (direct wages):

1.1. Wages accrued to employees tariff rates and salaries for hours worked.

1.2. Wages accrued for work performed at piece rates, as a percentage of revenue from sales (performance of work and provision of services).

1.3. The cost of products issued as payment in kind.

1.4. Bonuses and remuneration (including the cost of in-kind bonuses), whether regular or periodic, regardless of the source of their payment.

1.5. Incentive additional payments and allowances to tariff rates and salaries (for professional skills, etc.).

1.6. Monthly or quarterly remuneration (allowances) for length of service, work experience, except for remuneration based on the results of work for the year, annual remuneration for length of service (work experience).

1.7. Compensation payments related to working hours and working conditions:

1.7.1. Payments due to regional regulation of wages according to regional coefficients; coefficients for work in desert, waterless areas and high mountain areas, percentage increases in wages in areas Far North, in equivalent areas and other areas with severe natural and climatic conditions.

1.7.2. Additional payments for work in harmful or dangerous conditions and for hard work.

1.7.3. Additional payments for night work.

1.7.4. Pay for work on weekends and holidays.

1.7.5. Overtime pay.

1.7.6. Payment to employees for rest days (time off) provided in connection with work beyond the normal working hours when shift method organization of work, with summarized recording of working time and other cases established by law.

1.7.7. Additional payments to workers constantly engaged in underground work for the standard time of their movement in the shaft (mine) from the shaft to the place of work and back.

1.8. Remuneration for skilled workers, managers, specialists of enterprises and organizations who are released from their main jobs and involved in training, retraining and advanced training of personnel.

1.9. Commission remuneration, in particular, for full-time insurance agents and full-time brokers.

1.10. Fees for employees included in the payroll of editorial staff of newspapers, magazines and other media mass media.

1.11. Payment for the services of accounting department employees for their execution of written instructions from employees to transfer insurance contributions from wages.

1.12. Payment for special breaks in work.

1.13. Payment of the difference in salaries to employees employed from other enterprises and organizations, maintaining the amounts for a certain period of time official salary By previous place work.

1.14. Payment of the difference in salaries for temporary substitution according to instructions.

1.15. Amounts accrued for work performed to persons involved in the work of the enterprise in accordance with special agreement With government organizations(for example, military personnel are involved), both issued directly to the involved employees and transferred to government organizations.

2. Payment for unworked time:

2.1. Payment of annual and additional holidays(without monetary compensation behind unused vacation).

2.2. Payment of additional vacations granted to employees under the collective agreement (in excess of those provided for by law).

2.3. Payment of preferential hours for teenagers.

2.4. Payment study holidays provided to employees studying at educational institutions.

2.5. Payment to employees sent for vocational training, advanced training, and training in other professions for the period of study.

2.6. Remuneration of workers involved in the performance of state or public duties.

2.7. Payment retained at the place of main work for employees hired for other work outside the enterprise.

2.8. Amounts paid at the expense of the enterprise for unworked time to employees who were forced to work part-time work time at the initiative of the administration.

2.9. Amounts paid at the expense of the enterprise to employees who were on forced leave at the initiative of the administration.

3. Other payments:

3.1. One-time incentive payments.

3.2. Payments for food, housing, fuel included in wages.

3.3. Expenses of the enterprise to provide housing for employees.

3.4. Enterprise expenses for social protection of employees.

3.5. Vocational training expenses.

3.6. Expenses for cultural and community services.

3.7. Labor costs not included in previous classifications (payment for travel to the place of work by transport common use, special routes, departmental transport, etc.).

3.8. Taxes related to the use of labor (for example, fees for attracting foreign labor).

3.9. Expenses that are not included in the enterprise's labor costs (payments from extra-budgetary funds, etc.).

Unlike the International Standard Classification, where all costs associated with the provision of housing are indicated in the fifth group, in the Russian survey the cost of free housing provided to employees or the amount of monetary compensation for failure to provide it free of charge are included in the fourth group. The reason for this is that these are monthly, regular payments that are included in the wage fund (Table 1).

Table 1 - Classification of labor costs

International Standard Classification of Labor Costs	Classification of labor costs used in the Goskomstat survey of Russia
	1. Payment for time worked
2. Payment for non-working time	2. Payment for unworked time
3. Prizes and gifts	3. One-time incentive payments
4. Meals, drinks and other payments in kind	4. Payments for food, housing, fuel included in wages
5. Housing costs for employees, which are borne by the employer	5. Expenses of enterprises (organizations) to provide housing for workers
6. Employer's social security expenses	6. Expenses of enterprises (organizations) on social protection of warriors
7. Training costs	7. Vocational training costs
8. Expenditures on social services	8. Expenses for cultural and community services
9. Other labor costs	9. Labor costs not included in the previously given classification groups
10. Taxes considered as labor costs	10. Taxes related to the use of labor

Group 5 includes expenses of enterprises for the maintenance of housing owned by enterprises and organizations, the cost of housing transferred to the ownership of employees, amounts provided to employees for a down payment or to repay a loan for housing construction, and other expenses for providing employees with housing. Group 6 includes insurance contributions to the pension fund, fund social insurance, compulsory health insurance funds, as well as costs associated with contributions to non-state pension funds, supplements to pensions for working employees, severance pay, payment of vouchers for employees and members of their families for treatment and rest at the expense of the enterprise and other expenses. Expenses for vocational training (group 7) include expenses for the maintenance of educational buildings, rent for premises for conducting classes; expenses for paid training of employees in educational institutions; stipends for employees and other expenses related to training and retraining of personnel. Expenses for cultural and public services (group 8) include expenses of enterprises for holding cultural events, sporting events, excursions, exhibitions; expenses for maintaining canteens, libraries, clubs, sports facilities. Group 9 includes costs associated with paying for travel to the place of work, the cost of travel benefits for employees of transport departments, uniforms and workwear and shoes, etc.

2. Problem

Calculate the amount of funds for wages for the trading enterprise for the planned year and draw up an estimate for spending these funds.

Determine the amount of funds for wages in accordance with established official salaries, commodity rates, piece rates, taking into account the planned number of employees and the current regulations on wages.

On trading company remuneration at flexible rates is applied. Determine the amount of labor costs based on the following data:

– in the reporting year, wages at store prices amounted to 240,000 rubles.

– turnover in the planned year retail will increase by 6%, the ratio of the rate of increase in output per employee and the average wage included in the scale of flexible prices is 0.8. The number of store employees will not change.

– labor costs for a cleaner, worker and watchman – 54,000 rubles.

Determine the salaries of managers, specialists and office workers based on the data in table. 2.

Table 2 - Initial data

Job titles	Number of staff units	Established monthly salary, rub.	Annual amount of labor costs based on salaries, rub.
Head store
Chief Accountant
Economist

Accountant, category I specialist
Other employees

Additional payments and allowances paid to some employees in accordance with the current regulations are calculated to amount to 5,000 rubles.

In accordance with the collective agreement calculated the average size awards for main results economic activity, it is 20% of the monthly salaries of sellers - 138,000 rubles. The amount of bonuses for managers, specialists, and employees is 25%.

According to the analysis, vacation pay will be 8% of the total amount of funds for wages.

Remuneration for employees not on the payroll, taking into account the payment of previous years, is 5% of the amount of remuneration for employees on the payroll.

The sizes of the regional coefficient and percentage allowances are 0.1 and 0.3, respectively.

Table 3 - Cost estimate for labor costs

	Expenditure	Amount, rub.
	Salaries of managers, specialists and office workers, taking into account a growth rate of 7.5%
	Including:
	Expenses for paying salaries of management employees, specialists, employees, taking into account the growth rate of 7.5%
	Premium fund
	Regional coefficient
	Percentage allowances
	Vacation pay
	Salary expenses for salespeople
	Including:
	Salary amount
	Incentive fund (premium)
	Regional coefficient
	Percentage allowances
	Vacation pay
	Labor costs for cleaners, workers and watchmen
	Vacation pay
	Remuneration of employees not on the payroll, taking into account the payment of previous years
	Vacation pay
	Additional payments, allowances paid to some employees
	Vacation pay
	Labor costs in the planning period

List of used literature

1. Belova V. The mechanism for reimbursing labor costs: costs of employers / V. Belova // Man and labor. – 2000. - No. 2. - P.70.

2. Kuznetsova V.A. Accountant's Dictionary / V.A. Kuznetsova - M.: Publishing house. Berator-Publishing, 2007. - 400 p.

3. Raizberg B.A. Modern economic dictionary / B.A. Raizberg, L.Sh. Lozovsky, E.B. Starodubtseva. - M.: INFRA-M, 2007. - 495 p.

4. Salin V.N. Macroeconomic statistics / V.N. Salin, V.G. Medvedev, S.I. Kudryashova and others - M.: Delo, 2005. - 336 p.

5. Tomilina Yu.S. Improving the structure of labor costs at an enterprise: Dis. Ph.D. econ. Sciences / Yu.S. Tomilina. - M.: ProSoft-M, 2005. - 136 p.

6. Personnel management: a textbook for graduate students / Ed. T.Yu. Bazarova, B.L. Eremina. – M.: Unity, 2007. - 560 p.

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Labor power is the ability to work, the totality of a person’s intellectual and physical abilities, which is used by him whenever he produces any use value. The labor force does not exist without an employee, therefore the state of health, his psychophysiological qualities, the development of his intelligence, level of education, professional knowledge, a set of social qualities (contact, responsibility, discipline, attitude to work, system of value orientations, etc.) - all this is included into the content of the concept of “shining worker”. Historically, the development of the workforce occurred in the process of labor activity. Decisive impact on labor functions, performed by a person, and, accordingly, the qualitative parameters of the labor force were influenced by the tools used. In turn, the development of the workforce (increasing the level of education, professional knowledge, etc.) had an impact on the effective use of tools and their improvement.

Labor costs

Labor costs of enterprises (employers) are the sum of remunerations for work performed and additional expenses incurred by enterprises and organizations (employers) in favor of employees.

For a worker, the most important factor shaping his position regarding the price for his work is the cost of subsistence and their composition, which in turn depends on a number of conditions: the historical level of consumption of goods, cultural development of society, climatic and other factors, national characteristics , religious preferences and restrictions, etc.

When considering an organization's labor costs, it is customary to distinguish between direct and indirect costs. Direct costs include wages, social benefits and services, and the cost of hiring and training personnel. Indirect include social taxes and social contributions. If the first group is manageable by the enterprise, then the second group represents standards established by the state, which the enterprise can manage only within the framework limited by the relevant regulations.

I. Direct wages:

1.1. The basic salary of hourly workers (including bonuses for responsibility, additional payments for dirt, danger and inconvenience, monetary compensation for food, sandwiches, etc., payments under the guaranteed salary system, additional payment at the cost of living and other regular additional payments considered as direct wages and salaries);
1.2. Incentive additional payments to time workers;
1.3. Earnings of pieceworkers (excluding overtime surcharges);
1.4. Additional pay for overtime work, night shifts and weekend work.

II. Payment for unworked time:

2.1. Annual leave, other paid leave, including long service leave;
2.2. Public and other recognized holidays;
2.3. Other paid time away (for example, birth or death of family members, marriage of employees, functions of a nominal position, trade union activities);
2.4. Severance pay, final settlement, where they are not considered a social security expense (otherwise they qualify under clause VI (V).

III. Bonuses and cash rewards:

3.1. End of year bonus and seasonal bonuses;
3.2. Profit sharing bonuses;
3.3. Additional vacation pay in addition to regular vacation pay and other bonuses and cash rewards.

IV. Food, drink, fuel and other payments in kind.

V. Cost of housing for workers provided by employers:

5.1. The cost of housing - property of the institution;
5.2. The cost of housing that is not the property of the institution (subsidies, subsidies, etc.);
5.3. Other types of housing costs.

VI. Employers' social security costs:

6.1. Statutory social security payments (under programs covering: old age, disability and survivors; illness, maternity; work-related injuries; unemployment; large-family benefits);
6.2. Payments under private social security programs and social insurance under a collective agreement, contract or optional (for programs covering: old age, disability and loss of a breadwinner; illness, maternity; work injuries; unemployment; large-family benefits);
6.3. (a) Direct payments to employees related to their absence from work due to illness, maternity or work injury to compensate for loss of earnings; (b) other direct payments to employees treated as social security benefits;
6.4. Cost of nursing and medical care;
6.5. Severance pay and final settlement where it is considered a Social Security expense.

VII. The cost of vocational training (including also training fees and other payments for the services of external instructors, educational institutions, for training materials, reimbursement of training fees to workers, etc.).

VIII. Cost of cultural services: other than wages and salaries for personnel providing services, for example, depreciation of repairs and maintenance of buildings and equipment and other costs, minus subsidies, tax rebates, etc., received from government authorities and from workers. Investments made during the year are excluded.

8.1. The cost of maintaining a canteen at the enterprise and other food services;
8.2. Cost of educational, cultural, recreational and related facilities and services;
8.3. Subsidies to credit unions and expenses for similar services for employees.

IX. Other labor costs.

X. Taxes considered as the cost of labor.

- travel expenses during business trips (without days);
- reimbursement of expenses associated with transfer, referral and employment in other areas;
- cost of issued special clothing, safety shoes, etc.

Labor costs consist of the following components:

1. Payment for hours worked (direct wages):
1.1. Wages accrued to employees at tariff rates and salaries for hours worked.
1.2. Wages accrued for work performed at piece rates, as a percentage of revenue from sales (performance of work and provision of services).
1.3. The cost of products issued as payment in kind.
1.4. Bonuses and remuneration (including the cost of in-kind bonuses), whether regular or periodic, regardless of the source of their payment.
1.5. Incentive additional payments and allowances to tariff rates and salaries (for professional skills, etc.).
1.6. Monthly or quarterly remuneration (allowances) for length of service, work experience, except for remuneration based on the results of work for the year, annual remuneration for length of service (work experience).
1.7. Compensation payments related to working hours and working conditions:
1.7.1. Payments due to regional regulation of wages according to regional coefficients; coefficients for work in desert, waterless areas and in high mountain areas, percentage increases in wages in the Far North, in equivalent areas and other areas with difficult natural and climatic conditions.
1.7.2. Additional payments for work in harmful or dangerous conditions and heavy work.
1.7.3. Additional payments for night work.
1.7.4. Payment for work on weekends and holidays.
1.7.5. Overtime pay.
1.7.6. Payment to employees for days of rest (time off) provided in connection with work in excess of normal working hours under the rotation method of organizing work, with cumulative accounting of working hours and other cases established by law.
1.7.7. Additional payments to workers constantly engaged in underground work for the standard time of their movement in the shaft (mine) from the shaft to the place of work and back.
1.8. Remuneration for skilled workers, managers, specialists of enterprises and organizations who are released from their main jobs and involved in training, retraining and advanced training of personnel.
1.9. Commission remuneration, in particular, for full-time insurance agents and full-time brokers.
1.10. Fees for employees on the payroll of editorial staff of newspapers, magazines and other media.
1.11. Payment for the services of accounting department employees for their execution of written instructions from employees to transfer insurance contributions from wages.
1.12. Payment for special breaks in work.
1.13. Payment of the difference in salaries to employees employed from other enterprises and organizations, while maintaining the official salary at the previous place of work for a certain period of time.
1.14. Payment of the difference in salaries for temporary substitution according to instructions.
1.15. Amounts accrued for work performed to persons involved in the work of the enterprise in accordance with a special agreement with government organizations (for example, military personnel were involved), both issued directly to the involved employees and transferred to government organizations.
2. Payment for unworked time:
2.1. Payment for annual and additional vacations (without monetary compensation for unused vacation).
2.2. Payment of additional vacations granted to employees under the collective agreement (in excess of those provided for by law).
2.3. Payment of preferential hours for teenagers.
2.4. Payment for educational leave granted to employees studying in educational institutions.
2.5. Payment to employees sent for vocational training, advanced training, and training in other professions for the period of study.
2.6. Remuneration of workers involved in the performance of state or public duties.
2.7. Payment retained at the place of main work for employees hired for other work outside the enterprise.
2.8. Amounts paid at the expense of the enterprise for unworked time to employees who were forced to work part-time on the initiative of the administration.
2.9. Amounts paid at the expense of the enterprise to employees who were on forced leave at the initiative of the administration.
3. Other payments:
3.1. One-time incentive payments.
3.2. Payments for food, housing, fuel included in wages.
3.3. Expenses of the enterprise to provide housing for employees.
3.4. Enterprise expenses for social protection of employees.
3.5. Vocational training expenses.
3.6. Expenses for cultural and community services.
3.7. Labor costs not included in previous classifications (payment of travel to the place of work by public transport, special routes, departmental transport, etc.).
3.8. Taxes related to the use of labor (for example, fees for attracting foreign labor).
3.9. Expenses that are not included in the enterprise's labor costs (payments from extra-budgetary funds, etc.).

Table 1 - Classification of labor costs

International Standard Classification of Labor Costs	Classification of labor costs used in the Goskomstat survey of Russia
	1. Payment for time worked
2. Payment for non-working time	2. Payment for unworked time
3. Prizes and gifts	3. One-time incentive payments
4. Meals, drinks and other payments in kind	4. Payments for food, housing, fuel included in wages
5. Housing costs for employees, which are borne by the employer	5. Expenses of enterprises (organizations) to provide housing for workers
6. Employer's social security expenses	6. Expenses of enterprises (organizations) on social protection of workers
7. Training costs	7. Vocational training costs
8. Expenditures on social services	8. Expenses for cultural and community services
9. Other labor costs	9. Labor costs not included in the previously given classification groups
10. Taxes considered as labor costs	10. Taxes related to the use of labor

Group 5 includes expenses of enterprises for the maintenance of housing owned by enterprises and organizations, the cost of housing transferred to the ownership of employees, amounts provided to employees for a down payment or to repay a loan for housing construction, and other expenses for providing employees with housing. Group 6 includes insurance contributions to the pension fund, social insurance fund, compulsory health insurance funds, as well as costs associated with contributions to non-state pension funds, bonuses to pensions for working employees, severance pay, payment of vouchers for employees and members of their families for treatment and rest at the expense of the company and other expenses. Expenses for vocational training (group 7) include expenses for the maintenance of educational buildings, rent for premises for conducting classes; expenses for paid training of employees in educational institutions; stipends for employees and other expenses related to training and retraining of personnel. Expenses for cultural and public services (group 8) include expenses of enterprises for holding cultural and sports events, excursions, exhibitions; expenses for maintaining canteens, libraries, clubs, sports facilities. Group 9 includes costs associated with paying for travel to the place of work, the cost of travel benefits for employees of transport departments, uniforms and workwear and shoes, etc.

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