Sample calculation of industrial control in design organizations. What is KTU as part of wages: concept, calculation formula
The basic element for quantitatively assessing the employee’s contribution to the overall result is the KTU - labor participation coefficient, the calculation is given below. This indicator is often used in manufacturing or construction enterprises with a collective wage system and is not regulated by law. Formulas for determining specific values are approved according to objective criteria in order to avoid obtaining a subjective result.
The collective system of payment for workers' labor is a type of piece-rate form of earnings with the distribution of wages for each employee depending on piece rates and the total amount of output produced by the team, unit, shift, etc. The personal contribution of each employee is assessed using the KTU labor participation coefficient according to the assigned rank and working hours worked. The base value is taken as 1 or 100 in relation to specialists who, in the billing period:
- Completed the planned task.
- They did not violate labor discipline.
- We manufactured products in accordance with established quality standards, accepted technologies and labor safety standards.
- Performed duties according to job description.
The individual value of the coefficient is set by organizations independently. For this purpose, a protocol or decision is drawn up, signed by the head. An increase or decrease in the indicator occurs depending on the personal contribution of each employee.
Downgrading criteria:
- Failure to fulfill the production plan.
- Violation of discipline and official duties.
- Low quality, defective.
- Violation of technological and production indicators.
- Using equipment for improper purposes.
- Failure to comply with management orders.
- Working on faulty equipment.
- Working without protective equipment, non-compliance with labor protection.
Increasing criteria:
- Fulfillment and overfulfillment of the production plan.
- Overtime employment.
- Mentoring and mentoring of new team members.
- Non-standard solutions to time-consuming and complex problems.
Note! KTU is used not only when distributing employee salaries, but also when determining the amount of bonuses, one-time remunerations, additional payments for combinations, etc.
Calculation formula
When calculating the specific earnings result for each employee, it is important to remember that the final amount cannot be lower than the salary established upon hiring. This norm, enshrined in the Labor Code of the Russian Federation (Articles 8, 57, 135), does not allow the situation of personnel to worsen without changing the labor factors of work.
The basic formula for calculating KTU looks like this: KTU norm + BC (basic criteria that increase or decrease the base).
For example, at the end of the month, a construction team is entitled to a collective remuneration of 60,000 rubles. There are 4 employees in total. First, you should calculate the total KTU for each team member, taking into account the accepted criteria and with the basic KTU = 1.
Then, remuneration is distributed among employees, taking into account the obtained values of the KTU for each member of the team.
If remuneration is carried out at standard rates, the KTU can be used when calculating, and you can find out what it is from this article.
KTU: concept and scope of application
KTU - coefficient of labor participation of employees in professional activities. Each team member contributes to the work. To evaluate the employee’s work, the concept of KTU was additionally introduced.
This value is determined in numbers to evaluate the employee’s work. This indicator is used to set increased or decreased wages, but it all depends on the employee himself.
The team must make a joint decision on the procedure for using the coefficient. In order for everything to be done correctly, it should be announced which coefficients are assigned to which employees, and the foreman does not need to do everything himself. Based on the results of the meeting, a protocol is drawn up.
Cases of decreasing the coefficient:
- the manager’s tasks were not completed at all or were not completed on time;
- violation of the route of operations during the execution of the technological process;
- failure to implement the approved work plan;
- failure to fulfill one of the points of the plan;
- allowing defects in work;
- quality does not meet standard requirements;
- violation of technological discipline;
- the work was carried out without permission and without instructions;
- use of faulty equipment;
- use of technological equipment for other purposes;
- failure to use PPE;
- violation of occupational safety requirements;
- providing false information;
- others.
An increase in KTU is carried out in the following cases:
- manifestation of activity in work;
- issuing initiative proposals;
- execution of a responsible task in a short time;
- and other criteria.
Additional payments when using KTU are distributed:
- As a bonus.
- From funds saved on the salaries of other employees.
When not to use KTU
In what cases does KTU not apply?
Collective work is the main condition for using this coefficient. But it is not always used; it cannot be used under the following circumstances:
- when calculating compensation payments for work under conditions;
- when calculating wages for overtime work;
- additional payment for work on holidays and weekends;
- with established additional payments when working at night;
- if, when calculating wages, an additional payment to the foreman is established;
- with individual bonuses for employee qualifications;
- when calculating bonuses;
- other types of benefits.
Payroll for all listed cases is carried out separately and KTU cannot influence this circumstance in any way.
How funds are distributed
IN legislative framework There are no clear and transparent definitions of how payments under the CTU are established. are produced by the enterprises themselves, in the most acceptable ways, but it is important to know that this point does not contradict the law.
For a certain category of qualified employees, there should not be a downward change in wages when using KTU. That is, the employee must at least receive his tariff.
KTU is also used:
- With the introduction of a tariff-free system. The payment amount is divided by the number of employees working together. In this case, the average coefficient is one, and is adjusted on the basic basis of the KTU.
- Distribution of the amount of wages over the tariff. Employees receive wages in excess of tariff accruals, and then distribute the remaining amount to all employees.
How is the calculation done?
Formula for calculating KTU
The calculation of the KTU is carried out on the basis of established parameters, in which their own points are assigned for each nuance. These points are then summed up.
To use it correctly, you need to know the number of people in the team. The calculation itself can be done like this:
KTU = (0/1+n) * N,
where 0 is the parameter estimate for each term labor collective;
1+n is the total amount of points awarded;
N is the number of members of the work team.
To calculate the CTU, the following factors are taken into account:
- The complexity of the work functions performed.
- Working with complex equipment.
- Maintenance of equipment and fixtures.
- Qualitative characteristics of the work performed.
- Responsibility for the result.
Each criterion has its own scores.
Example calculation
To understand how to calculate the CTU, the following example can be given.
One team employs 5 people at the same time. If they fulfill 100% of the plan, they are entitled to payments of 1000 rubles.
One of the workers completely completed the task; he complied with all standards, did not violate technological discipline and followed the rules. The second worker was also diligent in completing his task, but at the same time he also exceeded his standard by 0.25, that is, his KTU will be 1.25. The third worker also coped with the task, but the machine equipment was broken, and he was also noticed more than once as being late. Its KTU is 0.5. The next employee repaired the machine equipment. and received KTU 1.6. The fifth employee did not work on the last day due to circumstances beyond his control, so he was assigned a KTU of 0 0.65.
- The first employee is entitled to 200 rubles.
- The second - 200 * 1.25 = 250 rubles.
- The third - 200 * 0.5 = 100 rubles.
- The fourth - 200 * 1.6 = 320 rubles.
- Fifth - 200 *0.65 = 130 rubles.
The total amount should be 1000 rubles.
Advantages and disadvantages of the system
Advantages and disadvantages of using KTU
The system of using KTU has its pros and cons.
Advantages of KTU:
- the activities of all team members are carried out;
- It makes sense for every employee to improve their work performance;
- stimulating employees to improve their skills;
- incentive to increase initiative;
- reasoned possibility of punishing employees;
Disadvantages of the system:
- the assessment is made subjectively;
- the psychological system of relationships between employees may be disrupted.
Only after weighing all the advantages and disadvantages of the system is it necessary to think about how to introduce the CTU.
Features when introducing CTU at an enterprise
The introduction of the KTU system is determined at each site based on the individual characteristics of the technological process.
For example, the manager evaluates the work of engineering and technical workers independently every month and does not need to ask advice from colleagues.
If several team members carry out activities at the same time at a production site, then the foreman sets the coefficients.
If wages are reduced or increased due to the use of CTU, the employee must be informed in writing. As a rule, an administrative document for the enterprise is published.
According to the established standards of the KTU and how to apply them, it is recommended that enterprises issue a standard or regulation regarding this area.
For information about the labor participation rate, see this story:
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The labor participation coefficient shows the measure of labor participation of an individual employee in the overall result of the team or production team. This is a generalized quantitative assessment of the labor contribution of an individual specialist. The use of KTU prevents the subjective assessment of each employee’s contribution to the common cause and the emergence of conflicts regarding the calculation and payment of wages.
Application of the labor participation rate
The basic value of the KTU is 1 or 100. This value applies to accruals to employees who, in the billing period:
- completed the task;
- followed the requirements for production technology, quality, labor safety;
- observed labor discipline;
- complied with job responsibilities and work instructions.
The base coefficient increases or decreases depending on indicators reflecting the individual contribution of a specialist to the collective result of labor. Each organization determines the individual dimensions of the CTU. The decision is made by the brigade council (meeting) and documented in the appropriate protocol.
Subsequently, daily records of indicators are kept and the overall KTU is calculated.
Criteria that can reduce the size of the coefficient:
- failure to comply with the manager's instructions on time;
- violation of production technology;
- failure to fulfill the plan and established economic indicators;
- defects, low quality of work;
- violation of labor discipline;
- non-compliance with labor protection requirements; performing work without appropriate instructions, work permits, or personal protective equipment;
- use of faulty tools, equipment, faulty equipment;
- use of equipment for purposes other than its intended purpose, etc.
Indicators that increase the value of KTU:
- manifestation of initiative, creative activity when performing production, organizational and technical tasks;
- solving a complex and responsible problem;
- performing work in a short time;
- mentoring, etc.
KTU is most often used for piecework wages. The tariff part is calculated according to hourly tariff rates and time worked. The bonus and payment according to the labor participation coefficient are paid from the above-tariff part of the payroll (above-tariff part of the salary).
With the use of KTU, the following additional payments can be distributed:
- bonus for labor achievements (for exceeding the norm);
- one-time remuneration in connection with changes in standards;
- salary savings associated with the release of personnel.
The above-tariff salary, distributed according to the coefficient, is included in the cost of production.
Labor participation rate: formula in Excel
Actual labor indicator = basic KTU + SC (sum of increasing / decreasing criteria).
Basic – 1 or 100. Reducing criteria for assessing labor contribution are subtracted from the basic labor indicator. Raising ones are added.
Example problem. A team of 4 employees works in the woodworking shop. They have 3 types of equipment at their disposal. Salaries are calculated using the KTU. A system of increasing and decreasing criteria has been developed.
To calculate individual KTU, a separate table is compiled:
A separate table is filled out for each reporting period. The final indicator is the sum of the basic and increasing/decreasing criteria.
To understand how wages are calculated using the KTU, let’s distribute the above-tariff part of the payroll among team members. Let’s assume that for May this brigade is given an amount of 65,000 rubles. This figure must be divided by the sum of the KTU for all employees and multiplied by the individual labor participation coefficient.
Let’s add the “Total” line to the table and calculate the sum of the coefficients of all employees (SUM function):
We calculate the bonus for labor achievements using the formula:
To this figure it remains to add the tariff part, calculated based on time worked and hourly tariff rates.
Guided by Art. 63 Labor Code of the Republic of Belarus (hereinafter referred to as the Labor Code), employers, on the basis of a collective agreement, use the labor participation coefficient (hereinafter referred to as the Labor Participation Coefficient) in remuneration of workers. Let us consider the practice of its application in a construction organization that has within its structure the production of building structures and products.
Approval of the regulations on the application of KTU
The Regulations on the application of KTU in a construction organization (hereinafter referred to as the Regulations) are approved by the employer in agreement with the trade union. The position is an integral part of the organization's remuneration system.
KTU is a generalized quantitative assessment of the labor contribution of workers, managers, specialists, and other employees to the overall results of work, used in remuneration.
Purpose of using KTU
When distributing team wages in accordance with the categories of workers and hours worked, individual output, the quality of work performed, compliance with labor and production-technological discipline, and other performance indicators of performers are not taken into account, which creates equalization in the remuneration of workers. It is also necessary to specify the assessment of the work results of line production managers, heads of departments, services, specialists, and other employees.
The use of CTU for assessing the work of performers and distributing collective earnings increases the dependence of the wages of workers on the results of their work.
Salary distributed using KTU
KTU is used when distributing brigade earnings (above-tariff part of piecework earnings), bonuses for production results, remuneration based on the results of work for the year, and other accruals to a brigade, department, site, workshop.
The tariff portion of earnings is distributed among team members based on hourly tariff rates and time worked, regardless of the KTU established for the employee.
Payments not distributed using the CTU
The following are not collective earnings and are not distributed with the help of the CTU:
- additional payments for work in harmful and difficult working conditions, at night, for multi-shift work, working overtime, on weekends and holidays, for leading a brigade or unit;
- bonuses for professional skills, class, work experience;
- payment for the performance of state or public duties;
- rewards for inventions and innovation proposals;
- benefits for temporary disability, pregnancy, childbirth and other types of individual payments.
Establishment of basic KTU
The unit (1.0) is taken as the base KTU. It is the average assessment of the performers’ work and is established for those team members who, in the billing month, performed the established tasks, strictly complied with the requirements for production technology, quality of work, labor protection, labor discipline, and other requirements stipulated by work instructions and job responsibilities.
The basic KTU increases or decreases depending on the individual contribution of workers to collective labor results based on indicators, an approximate list of which is given in Table. 1–4.
Table 1.
Indicators at which the worker’s labor standard is reduced
The name of indicators |
Reduction factor (–) for each case |
|
Low quality of work (per case) |
||
Violation of production and technological discipline |
||
Violation of safety and fire safety rules |
||
Low production standards, unsatisfactory job maintenance |
||
Failure to comply with management orders on time, incl. orders of the foreman, foreman, supervisor |
||
Unsatisfactory maintenance of equipment and fittings |
||
Low labor discipline (lateness to work, leaving work early, excessive rest, absenteeism) |
||
For drinking alcoholic beverages in work time, appearing at work while intoxicated, the KTU is reduced to “0” for a period of 1 to 3 months. |
||
Failure to fulfill production targets and production standards due to the fault of the employee |
||
Disciplinary sanctions announced in the order: |
||
comment |
||
dismissal under clauses 4, 5, 7, 8, 9 of Art. 42 TK |
Table 2.
Indicators at which workers' labor costs increase
The name of indicators |
Increasing factor (+) for each case |
|
Completing a production task ahead of schedule |
||
Execution of unscheduled tasks |
||
Carrying out the work of an absent worker |
||
Application of advanced techniques and work methods that ensure higher output |
||
Assistance in work of a team member, mentoring |
||
Taking initiative to promote economical use of labor and material resources |
||
Personal contribution to improving the quality of work |
||
Availability of rationalization proposals aimed at increasing production efficiency and improving the quality of work: |
||
for the submitted proposal |
||
for the implemented proposal |
||
Moral incentives: |
||
announcement of gratitude |
||
awarding a diploma |
||
entry on the honor board, in the book of honor |
||
conferring honorary titles |
||
awarding medals, orders |
This material is published partially. The full material can be read in the magazine “Salaries” No. 9 (9), September 2006. Reproduction is possible only with
On manufacturing enterprises Collective forms of remuneration are actively used. The most common of them is the team one: total earnings are distributed among the team members in accordance with the established rank and time worked, as a rule, using the labor participation coefficient (LFC).
KTU allows, along with the overall results of the team’s work, to take into account the personal contribution of each employee to their achievement. The procedure for determining and applying the labor participation coefficient is established by the labor collective.
For your information
A collective form of remuneration is one of the options for piecework wages, in which an employee’s salary depends on the quantity of products of established quality produced by the entire team (unit, team, shift, etc.) and the size of piecework prices per unit of product.
2 main options for using KTU:
1) to distribute the entire earnings of team workers (teams, shifts, etc.);
2) for the distribution of that part of the wage fund that is formed in excess of the tariff.
For example, using KTU the following can be distributed:
- bonus for production results (for example, for expanding service areas or increasing the volume of work performed);
- savings on payroll;
- a one-time reward for revising time standards on the initiative of the team.
Individual payments are not collective earnings and are not distributed through the CTU. Individual payments include:
- additional payments for work in hazardous and difficult working conditions, at night, for multi-shift work, working overtime, on weekends and holidays, for leading a team or unit;
- bonuses for professional skills, class, work experience;
- payment for the performance of state or public duties;
- rewards for inventions and innovation proposals;
- benefits for temporary disability, pregnancy and childbirth and other types of individual payments.
The size of the labor participation coefficient, as a rule, ranges from 0 to 2. It is recommended to use a coefficient equal to 1 as a base one.
KTU = 1 for the contractor who, during the billing period, performed the established tasks, strictly complied with the requirements for production technology, quality of work, labor protection, labor discipline and other requirements provided for by work instructions and job responsibilities.
The basic KTU increases or decreases depending on the individual contribution of workers to the collective results of labor. The size of the coefficients is established by the decision of the brigade (its meeting or the brigade council) based on the results of work for the period and is documented in the appropriate protocol.
In order to exclude the establishment of KTU based on subjective criteria, it is necessary to develop and approve a methodology for calculating it using objective indicators.
Example of KTU calculation
A team of mechanics - 3 employees - works in the procurement shop of a metalworking enterprise. The team works on 4 types of equipment. The main parameters of the team’s work were identified and points were assigned to each parameter:
- working conditions (physical activity): heavy physical activity - 3 points, moderate - 2 points, light - 1 point;
- ability to operate equipment: 1 point for each type of equipment;
- ability to set up equipment: 2 points for each type of equipment;
- intensity of work: 3 points for the most intense work and then in descending order;
- quality control: 1 point for the implementation of this function;
- responsibility: maximum - 3 points.
Each team worker is assigned a corresponding score for each parameter. The labor participation rate is calculated using the formula:
where is KTU i- value of the labor participation coefficient i-th employee;
Bi- sum of points i-th employee;
n- number of workers in the team.
___________________
Conclusion
The proposed calculation methodology makes it possible to calculate the KTU based on objective criteria, which will reduce the subjective assessment of each employee’s contribution to the common cause and prevent conflicts in the team associated with the calculation and payment of wages when using collective forms of remuneration.