Financial incentive fund for budget organization employees was established

A dedicated fund for financial incentives aimed at employees of budget institutions and organizations is being established, as announced by the Ministry of Economy and Finance.

This regulation specifies that a special fund amounting to 15 percent of the labor payment fund will be created for employees of budgetary institutions and organizations, excluding medical institutions, general education schools, secondary special and professional educational institutions.

For specific groups such as children, elderly people, residents of "Muruvvat" and "Sakhovat" boarding houses for the disabled, specialized colleges for those with physical disabilities, sanatoriums for war and labor veterans, rehabilitation centers for the disabled, and social assistance service employees, the incentive fund will be set at 25 percent of the wage fund.

In budget institutions and organizations, the labor remuneration fund includes the basic tariff rate, job salary, labor incentive coefficient, payments for special working conditions and long service, bonuses for special titles and district coefficients, a two-month salary bonus from the budget, material support equivalent to one month's salary, and other payments that are considered social tax.

The special financial incentive fund is derived from budget funds and is subject to social tax at established rates. Payments from this fund are also subject to personal income tax, with appropriate deductions as per the law.

The funds from this special financial incentive fund are used for salary increases and rewarding employees of budgetary institutions and organizations.

To motivate highly qualified employees who proactively and conscientiously perform their duties in budget institutions and organizations, personal bonuses up to 50 percent of their salary can be awarded for their achievements, in accordance with the law. There is no maximum limit on these bonuses for the management staff of state bodies financed by the State Budget of the Republic of Uzbekistan.

These bonuses are determined by the superior organization for leaders and by the head of the institution or organization for other employees. If work quality deteriorates, assignments are delayed, or labor and performance discipline is violated, these bonuses can be reduced or canceled.

Bonuses are paid at the end of the reporting period, during jubilees, and on holidays. The amount is determined based on the individual's contribution to the overall results of the work, with no upper limit on the awards.

Payments from this fund are considered when calculating the average salary for purposes such as vacation pay, pensions, and temporary disability allowances.