Will the minister's allowance be added to the vacation pay?

Question

I work as a school teacher. For the past two academic years, I have been receiving a monthly bonus from the Minister’s Fund. However, this bonus is not included when my vacation pay is calculated, even though income tax is withheld from it. Could you please explain the legal basis for this and advise on the proper course of action?

Answer

The Regulation on the Fund of the Minister of Preschool and School Education, approved by Resolution No. 425 of the Cabinet of Ministers dated August 2, 2022 (Annex 1), establishes the procedure for forming and using the Fund’s resources, as well as the rules for incentivizing teachers and other pedagogical staff within the preschool and school education system through payments made from the Fund.

According to Part 1 of Article 233 of the Labor Code of the Republic of Uzbekistan, an employee is guaranteed payment of their average earnings during the period of annual leave. Such average earnings must be calculated in accordance with Article 257 of the Labor Code.

Part 2 of Article 257 provides that, when calculating average earnings, all taxable employment-related income actually paid by the employer must be taken into account.

The key phrase here is: “actually paid by the employer.” Under Articles 19 and 26 of the Labor Code, the Ministry is not your employer; your employer is the school where you work. It is also worth noting that many people mistakenly assume that the school principal is the employer. 

In fact, the principal is not the employer. Pursuant to Article 485 of the Labor Code, the principal is considered the head of the organization. The concepts of an employer and the head of an organization are legally distinct and should not be confused.

Therefore, the monthly bonus paid to qualified teachers from the Fund of the Minister of Preschool and School Education is not included in the calculation of average earnings used to determine annual leave pay.