Average monthly income from work is not the same as the average wage. Unlike the average salary, which is used for statistical surveys, the average salary is used for practical purposes. How does an employer find out an employee's average monthly income?
How it's calculated
The method of detecting average earnings for practical purposes is established by the Labor Code. Among other things, this indicator is used to calculate severance pay, vacation, wage compensation during disability, and so on.
Those who wondered how to calculate the average monthly income should use the simplest formula. You just need to take the income for the year and divide this amount by 12. When determining this amount for the purpose of compensating for losses in case of accidents and illnesses, the period of the previous calendar year is taken. The formula for the average monthly income here remains exactly the same. An exception for the period is cases where the employment relationship arose induring the previous calendar quarter. The required period is the period from the moment the employment relationship arises until the end of this quarter. Under Russian law, the average monthly income cannot be lower than the minimum wage. For this calculation, the employee's average hourly earnings are multiplied by the employee's weekly working hours and a factor of 4.348. This figure expresses the average number of weeks per month in a typical year.
If it is necessary to calculate the average monthly net income, subtract from the average monthly gross earnings:
contributions for pension savings;
social insurance contributions;
contributions for universal he alth insurance;
payment of income tax
The average salary of an employee cannot be lower than the minimum wage. If the average salary was below the level, it is always increased by the amount corresponding to the minimum wage.
For the calculation of the average monthly income for the last 6 months, the profit for the previous calendar quarter is decisive.
The provisions of the Labor Code are mandatory. In order to apply the average monthly income in labor relations, you need to use this particular document. There are two main factors that matter in determining the indicator:
- corresponding period;
- gross wages up to the specified period.
For the most part, the term is the previouscalendar quarter. But this does not mean that the chosen interval cannot be another period of time. The basis for calculating average earnings, therefore, can be a year, six months, and so on. Asking the question of how to calculate the average salary, you should first of all understand how long it takes to find this indicator.
Bonuses and rewards
Average earnings are used to calculate the copay:
- for working overtime;
- for work on the holiday;
- for night work;
- for work on Saturday and Sunday;
- for direct teaching activities above the established range.
Severance pay and compensation
Average earnings are used when:
- determining the amount of severance pay due to organizational changes;
- calculation of severance pay upon termination of employment due to he alth problems as a result of an accident at work or occupational diseases.
Determined also by average earnings:
- compensation for damage caused by an employee;
- compensation for damages for which the employer, staff are responsible.
Special cases in determining average earnings
Definitely, the way to calculate the average salary has already been established here. But in practice, a person, in turn, faces peculiarities and obstacles when calculating average earnings.
When working during the previouscalendar quarter - the main period is not a calendar quarter, but it is considered the time from the beginning of the employment relationship to the end of the calendar quarter.
Probable earnings are used if the employee worked at least 21 days in the main period. The probable earnings are calculated from the gross salary calculated from the beginning of the base period or even from the official salary that the employee would probably have received if he had been working all this time. Sometimes you need to establish an average salary during a long absence of work. In this case, you need to take the last known average salary of an employee and its average growth in the enterprise.
Often, this indicator is needed to calculate vacation pay. Vacation pay is calculated according to the following rules. A salary is paid based on a monthly fixed payment (eg base salary, fixed bonuses). It is taken into account in wages and vacation time in the amount of the payment due to the employee in the month of using the vacation. Included elements of remuneration for a monthly period, with the exception of the components of wages specified in the monthly constant payment rate.
It is worth noting that wages on vacation are paid to the employee, based on payment within 3 calendar months preceding the month of the start of the vacation. In cases of significant fluctuations in the magnitude of the components of wages indicated above, these components can be taken into account when calculating vacation payremuneration in the general, average amount for a period not exceeding 12 calendar months preceding the month of the start of the vacation.
In turn, holiday pay is calculated as follows. The amount is divided by the number of hours during which the employee performed the work. The reward for one hour of work is then multiplied by the number of hours that the employee spent on vacation during normal working hours - in accordance with the working time schedule in force for him - if he did not use vacation opportunities at that time.
In the same way, it is necessary to determine the basis of the amount of wages for the time the employee is released from duties in connection with the dismissal under an employment contract and calculate its amount. After the termination of the employment relationship, it should be indicated that in the event of the conclusion of such an agreement, the employee is en titled to compensation, the amount of which cannot be lower than 25 percent.
The calculation of the amount of losses is based, therefore, on the remuneration that the employee actually received, and not on the contractual salary. If a person worked less than the period specified in the contract, then the average monthly salary received by him, multiplied by the number of months of the contract, is taken into account.
Documents for the subsidy
In accordance with the law of the Russian Federation, some categories of citizens have the right to receive special subsidies when paying for housing and communal services. In order to receive them, you must provide the following documents for a subsidy.
Thisdirectly an application for its receipt, passport data, a document confirming Russian citizenship, certificates of family ties with the family living with this person. You will need their passports, birth certificates - in the case of minors. You need to provide proof of family composition. Here you need to fill out an income statement form. We also need extracts from the personal account of housing and communal services, documentation confirming the rights to social support.
Proof of income
There is a list of documentation that can fulfill this goal. Firstly, this is a certificate from the tax authority on income subject to taxation. Secondly, these are statements of family members not determined on the basis of income tax provisions on certain incomes received by individuals in the calendar year preceding this period. Thirdly, these are certificates of family members containing information on the amount of social insurance contributions for the calendar year preceding this period (social insurance certificate or certificate from the employer).
Another document confirming income is a certificate from the competent authority of the municipality, a payment order. It is also a statement about the size of the plot, expressed in hectares. Information about the family's income will also be obtained from the lease agreement in the event of a final decision on a fully or partially family-owned farm on lease based on the agreement.
The following document is a copy of the subjectexecution of a court decision on alimony or a copy of a court-approved settlement agreement concluded with an intermediary, according to which he must pay alimony. Such a document is considered a certificate of money transfers.
This list also includes a document indicating the date of loss of income and the monthly amount of lost income. A certificate of income received from the sale of the apartment will do.
Evidence can also be a copy of the final decision of the family court on adoption. The decision of the judicial authorities on the appointment of a guardian of the child is also used. Thus, these documents can be entered into the "Income Certificate" forms.
June 1, 2008, the employer decided to reduce the salary for his subordinate from 4,000 rubles. up to 3000 rub. On June 30, 2008, he decided to end his employment relationship with him. At the time of termination of the employment contract, the employee had the right to a salary of 3,000 rubles, which is the basis for the calculation, however, the amount of the average salary, calculated as equivalent for a vacation, is required.
This mechanism becomes a little more complicated if the employee received a variable salary (for example, he had an hourly rate) or in addition to the basic payment, he was awarded variable components, such as bonuses. Parts of the salary received by him during the 3 months preceding the month of termination of the employment contract are taken into account in the average amount for the corresponding period.
In the second case, the employee received a reward of 170 rubles/hour.The employer decided to terminate the employment relationship with him on June 30, 2008. To determine his average monthly salary, you will have to take into account the salary of the subordinate from May, April and March 2008, which is:
- May 2008: 170 rubles x 168 hours=28560 rubles;
- April 2008: 170 rubles x 176 hours=29920 rubles;
- March 2008: 170 rubles x 160 hours=27200 rubles.
Then you need to sum them up (28560 + 29920 + 27200=85680) and calculate the average salary of these three months (85680 rubles: 3=28560 rubles). Thus, the average monthly salary is taken into account as equivalent to vacation pay. In this case, it amounted to 28,560 rubles. If the employee received a fixed salary on a monthly basis, as well as a variable remuneration (for example, a fixed base salary plus a monthly variable bonus), one should, in turn, take into account the fixed element that was paid to the employee during the 3 months preceding the month of termination of the employment contract. In the following case, the employee owned a permanent salary of 21,000 rubles per month. In addition, he also received monthly variable bonuses. The contract was terminated on June 30, 2008. Then the employer must take into account the amount of the bonus for the last three months preceding the month of dismissal. He composed:
- May 2008 - 4800 rubles;
- April 2008 - 5200 rubles;
- March 2008 - 4400 rubles.
To calculate the average salary of an employee, the aboveamounts should be calculated like this:
- 4800 RUB + 5200 RUB + 4400 RUB=14400 RUB;
- calculate the average salary during these 3 months: 14400 rubles.: 3=4800 RUB;
- to sum the fixed and variable components of wages: 21,000 rubles. + 4800 rub.=25800 rub.
Thus, the average monthly salary here will be 25,800 rubles.
Average earnings in the country
The Main Statistical Office publishes data on the average wage per month. It is also regularly announced how much it amounted to in a particular year. The last indication is very important, given that, for example, deductions collected by bailiffs are calculated on its basis. Simply put, the national average is the result of dividing earnings by the number of employees.
What is not included in the average salary
It should be noted, however, that only companies employing at least 10 people are taken into account in these calculations. The statistics do not include small businesses. In addition, only the income of those employed with a formal employment contract is taken into account. The average wages of people working without his conclusion are not taken into account. Wages in envelopes are not taken into account. Because of this, many people believe that official statistics reflect the real current picture in the country.
According to statistics, the average monthly salary in Russia as of 2018 was 35,000 rubles, if this amount is rounded up. She ispresented without tax deduction. After him, the average monthly salary of a Russian began to equal 30,000 rubles. It is important to note that in view of the above factors, these statistics are considered not entirely accurate. In reality, the situation may be quite different. There is a large segment of the population that continues to work without an employment contract, working, for example, for individual entrepreneurs. In 2018, according to statistics, there was a trend towards an increase in the average monthly salary of an average Russian by several thousand rubles.