Private business owners banned to have high salaries

Belarusian authorities forbade directors of private companies to have high salaries.

In accordance with ruling of the Council of Ministers No. 597 of July 8, 2013, the ratio between the average salary of the director of a commercial company of any type of ownership and the company's average salary mustn't exceed 8.0.

The ruling sets estimated targets for bonuses and increments for directors of private companies.

Directors of organisations of any type of ownership cannot have all kinds of year-end bonuses, increments and additional payments if there is an increase in losses from sales of goods and services in the reporting period in comparison with the previous year and/or if salaries were not paid to employees,” the document says.

For directors of commercial companies with the state's stake the ratio between the director's salary and the company's average salary falls from 8.0 to 4.0 if two or more tasks of social and economic development forecast are not fulfilled during six months.

The ruling takes force on September 1, 2013.