On Improving the Procedure for Determining the Amounts of Remuneration, Pensions, and Other Payments

Decree of the President of the Republic of Uzbekistan

On Improving the Procedure for Determining the Amounts of Remuneration, Pensions, and Other Payments

In order to improve the procedure for determining the amounts of remuneration, eliminate the interdependence between remuneration conditions, pension assignment, and the collection of taxes, state duties, fines, fees, and other payments:

1. Effective September 1, 2019, introduce in place of the minimum wage:

• the minimum remuneration rate;
• the basic calculation unit;
• the basic pension calculation unit.

(Paragraphs one through four of item 1, as amended by the Decree of the President of the Republic of Uzbekistan dated December 30, 2019, No. UP-5898 — National Legislative Database, February 1, 2020, No. 06/20/5898/4258 — enters into force from February 1, 2020)

2. Determine that:

a) the minimum remuneration rate:

• is the monetary expression of the monthly tariff rate for the first grade of the Unified Tariff Scale for remuneration with a tariff coefficient of 1.0;
• is applied in the sphere of labor relations to determine the amount of salary, allowances, supplements, honoraria, compensation payments for additional work, and other types of incentive payments, as well as deductions established by legislation and other payments previously established in relation to the minimum wage, as well as to determine the need for family social support and the amount of unemployment benefits;
• is mandatory for all employers, regardless of organizational and legal form and labor relations, as the lower boundary of remuneration for workers who have fully performed the established labor norms;
• is established taking into account the need to ensure a decent standard of living for a person and cannot be lower than the cost of minimum consumer expenses.

(subparagraph "a" of item 2 supplemented by a paragraph by the Decree of the President of the Republic of Uzbekistan dated November 7, 2023, No. UP-188 — National Legislative Database, November 8, 2023, No. 06/23/188/0835)

b) the basic calculation unit is applied in determining:

• the amounts of taxes, fees, fines, state duties, and other payments for provided state services;
• the cost of patents, licenses, and other payments for engaging in a specific type of entrepreneurial activity, the size of charter and other funds (capital) of organizations, the cost of non-monetary shares and other securities, the book value of assets of legal entities, the maximum size of microcredits and leasing, as well as other financial and economic indicators;
• the amounts of state awards (including monetary rewards), departmental awards, including awards provided for titles, commemorative signs, and lapel badges, as well as compensation for expenses on meals and travel and some other similar compensations.

(subparagraph "b" of item 2 supplemented by a paragraph by the Decree of the President of the Republic of Uzbekistan dated October 27, 2020, No. UP-6094 — National Legislative Database, October 27, 2020, No. 06/20/6094/1413)

c) the basic pension calculation unit is applied for calculating pensions, allowances, supplements, and compensations applied in the sphere of pension provision, as well as for compensation of harm caused to workers by injury, occupational disease, or other damage to health associated with the performance of their labor duties.

3. Establish that:

• all types of allowances, supplements, rewards, and other payments of a compensatory and incentive nature established in relation to the minimum wage are recalculated with the preservation of the existing absolute values of these payments (with their rounding up if necessary);
• legislation may establish a different procedure for determining the amounts of remuneration, pensions, and other payments provided for in item 2 of this Decree.

4. The Ministry of Employment and Labor Relations, jointly with the Ministry of Finance and the Ministry of Justice of the Republic of Uzbekistan, within two months:

• submit to the Cabinet of Ministers of the Republic of Uzbekistan proposals on the revision of the Unified Tariff Scale for remuneration and the establishment of the amounts of certain types of benefits, compensations, and payments in absolute terms;
• develop and approve methodological recommendations on the application of the Unified Tariff Scale for remuneration and the establishment of an hourly wage system in organizations, taking into account the requirements of this Decree.

5. The Ministry of Finance, jointly with interested ministries and departments, within three months, submit to the Cabinet of Ministers of the Republic of Uzbekistan proposals on changes and additions to legislation arising from this Decree.

Ministries and departments must bring their departmental normative legal acts into compliance with this Decree within three months.

6. Control over the implementation of this Decree is entrusted to the Deputy Prime Minister of the Republic of Uzbekistan D.A. Kuchkarov.

President of the Republic of Uzbekistan Sh. MIRZIYOYEV

Tashkent, May 21, 2019, No. UP-5723

(National Legislative Database, May 21, 2019, No. 06/19/5723/3160, July 13, 2019, No. 06/19/5765/3418; January 1, 2020, No. 06/20/5898/4258, October 27, 2020, No. 06/20/6094/1413; November 8, 2023, No. 06/23/188/0835)