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LAW OF THE REPUBLIC OF MOLDOVA

of December 24, 1991 No. 824-XII

About indexation of cash incomes of the population

This Law determines the general principles of indexation of cash incomes of the population taking into account the change in price and rates for consumer goods and services.

Article 1. Concept of indexation of cash incomes of the population

Indexation of cash incomes of the population means total or partial compensation of losses of the income of the population connected with increase in prices and tariffs for consumer goods and services and represents the permanent mechanism of automatic adjustment of size of the current cash incomes of the population.

Indexation can be combined, and in certain cases and to be replaced with other methods of state regulation of cash incomes of the population (review of the pay level of work, the sizes of pensions, grants, benefits, etc.).

Article 2. Right of citizens to indexation of cash incomes

This Law guarantees to citizens of the Republic of Moldova the right to monetary compensation in connection with increase in prices and tariffs for consumer goods and services.

Cash incomes of the foreign citizens who are temporarily living in the Republic of Moldova including students and graduate students, it is not indexed if it is not provided by bilateral agreements (agreements) signed by the relevant states.

Article 3. Subjects to indexation

All cash incomes of citizens in payment type of work, employees of budgetary institutions and the organizations, and also the companies and the organizations selling products on fixed prices, pensions, grants, benefits and other income which do not have one-time character cash incomes of the population in organizations of credit and financial system in the form of deposits are indexed.

The companies and the organizations selling products at free prices have the right to index the cash incomes of workers which do not have one-time character according to the solution of labor collective.

Article 4. Indexation of savings of citizens

Savings of citizens in Savings bank of Moldova and commercial banks are subject to indexation by interest rate realignment.

Article 5. Basis of indexation of cash incomes

More than 5 percent growth of price index and rates for consumer goods and services forms the basis of indexation of cash incomes.

The price index and rates for consumer goods and services is estimated in State department according to the statistics, it is represented at the scheduled time to the Government, and also is published in mass media.

Article 6. Indexation financing sources

Compensation of losses of cash incomes of the population is performed at the expense of the corresponding income.

sources of means for indexation:

- compensations of employees of budgetary institutions and organizations (health care, national education, science, culture, etc.) assignments from the relevant budgets;

- compensations of employees of the companies and organizations selling products or rendering the services (included in consumer goods basket) at state prices and rates, - budgetary funds according to the procedure, determined by the Government;

- compensations of employees of the companies and organizations which are independently establishing the prices of the made goods and the rendered services, public organizations (associations) and their companies - own means of the companies and organizations;

- pensions and benefits (except disposable) - means of Social fund;

- grants - assignments from the relevant budgets;

- savings of citizens in Savings bank of Moldova and in commercial banks - the income of these banks.

Article 7. Procedure and frequency of indexation

Change of price index is calculated monthly accruing result from the moment of the previous indexation.

Indexation of cash incomes of the population is made monthly depending on growth rates of the prices and rates for consumer goods and services. The decision on income indexation of the population for the specific period is made by the special order of the Government approved with the Federation Council of independent labor unions.

Article 8. Determination of the amount of compensation

In case of determination of the amount of compensation growth of size of price index and rates for consumer goods and services, growth of the income of the population and their absolute value are considered.

Cash incomes of the population in payment type of work, pensions, grants and benefits are subject to indexation in the following procedure:

the first part of the income equal to the double size of minimum wage on the republic, - at price index size;

the last part of the income equal to the minimum monthly salary - at 50 percent of size of surplus of price index.

Income which exceeds the triple size of minimum wage are not subject to indexation.

The companies can provide in collective agreements additional compensations at the expense of own means.

Article 9. Payment procedure of money in connection with indexation

Payment of money in connection with indexation is made on place of employment or residence in the next month after publication of price index, but at least, than once in three months.

After calendar year the benefits amount in connection with indexation is included the tariff charges and official pay rates, pensions, grants, benefits, etc.

Article 10. Taxation of compensations

Compensation received owing to indexation of cash incomes are subject to the taxation.

The sizes of minimum income, not taxable, and taxation rates are reviewed according to the procedure, stipulated by the legislation about taxes.

Article 11. The dispute resolution concerning indexation

Disputes over questions of indexation are considered according to the current legislation.

Article 12. Responsibility for violation of the legislation on indexation

Persons guilty of violation of this Law are attracted in responsibility according to the current legislation.

Article 13. Control of compliance with law about indexation

Control of compliance with law about indexation of cash incomes of the population is exercised by local government bodies and other state bodies.

 

President of the Republic of Moldova

Mircha Snegur

 

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

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