Calculation of average earnings upon dismissal: calculation procedure, rules and features of registration, accrual and payment

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In case of dismissal or leaving the place of work for any other reason, each employee is obliged to receive the material resources due to him. The term of employment at a particular enterprise does not matter, as well as the reason for dismissal. Often, employees have doubts and questions when calculating the corresponding amounts, but was the calculation of the average monthly earnings upon dismissal correctly carried out? You can check this yourself using special accounting formulas immediately after receiving a notice of dismissal from the workplace.

Definition of concept

Average income is a measure of an employee's tangible income over a specific period of time.

Most often, for various calculations, earnings data for one working day are used. For theircalculations need to take into account only those payments that relate directly to the payment of quality labor and working hours. For this, a special formula for calculating the average earnings upon dismissal is used, which will be given below with calculations for an example. The average salary is determined by the accounting department according to the payment for the last 12 months of the employee's service. If he worked at the enterprise for a shorter period, then the calculations will be based on the income received for the actually worked period, but necessarily a multiple of a whole month.

What is used for

Average earnings are required when calculating travel, vacation, sick leave and payments for the employee's training period. Also, the average income indicator is required if the employee was transferred to another position for he alth reasons. In such cases, average earnings are paid until a permanent disability is established.

The indicator is also taken into account for calculating the payment for a period of incapacity for work for various reasons: calculating the average earnings of a maternity leave, upon dismissal with unused vacation, and so on. Thus, this amount is an average indicator of the employee's income for a specific period, so that on its basis it is possible to calculate the payment to the employee for the time period not actually worked.

Data for calculation

According to government decree No. 922, all calculations of average earnings are carried out. The list of incomes that affect the calculation of the average indicator is also indicated there.

So forcalculating the average earnings upon dismissal, it is necessary to take into account all possible payments provided for by the employment contract at a particular enterprise, except for those that are calculated on the basis of the same average earnings.

That is, you need to take into account:

• salary or tariff rate of a specific position;
• all kinds of allowances;
• prizes;
• fees and any cash rewards;
• surcharges.

This does not include the payment of already used holidays, sick days and other earnings based on average income. When calculating the amount of premiums, it should be borne in mind that if it is paid once a quarter, then only its corresponding part falls on one month. Monthly cash incentives are included in the calculations in the amount of no more than one indicator. If the worked month required for the calculations was incomplete, then the bonus is calculated on the basis of the part of the prescribed bonus proportional to the hours worked.

The easiest option

In order not to delve into the procedure for calculating average earnings upon dismissal at all and at the same time to independently know the amount of the due payment for a particular case, you can use a special online calculator. The application displays the finished result in a matter of seconds, you only need to load certain data into it. To do this, you will need to specify the period for calculation, the number of days not taken into account for calculation (vacation or sick leave), salary and the amount of allother payments received for the required period. Further, the program itself will perform all the necessary calculations with maximum accuracy, and the employee will receive the finished result.

Calculation of average earnings upon dismissal

To perform the calculations yourself, you will first need to add up all the amounts received for the last working year. To do this, it is better to be guided by the pay slips issued at the enterprise or ask the accounting department for a printout of the income accrued to a particular employee for the last 12 paid periods.

It's better not to rely on your own memory, since even approximately the same values can significantly distort the final result of calculations. After that, the entire amount received for the year should be divided by 12, which will provide the exact average earnings for the month.

Average income per day

Most often, this indicator is taken into account for calculating all kinds of payments. The law establishes that the average indicator of working days in a month is to be considered 29.3 exits. Multiplying the months worked by this number, you will get the number of exits for the entire calculation period. The most accurate amount of daily earnings is given precisely by the calculation, taking into account the entire hours worked, and not just one month, since such an indicator is also an average.

To determine the amount of payment for one work output on average, you need to multiply the number of months worked by a factor of 29, 3. Further, the previously obtained result of the total income for the entire perioddivided by the number of all worked settlement days, and the average daily earnings are obtained. It is important that it is not below the legal minimum.

Nuances

If an employee has worked in the company for less than a year, then to calculate the average monthly income, you will need to take the number of actually completed full billing periods. The total amount received for the entire period will need to be divided by the number of months worked, which will give the final result.

It is very important to understand that the calculation of the average earnings upon dismissal is made only on the basis of a full working month. If there is half a month in the total worked period, then it will not be taken into account at all in the calculations.

If during the calculation period the employee was sick, on vacation or did not attend the workplace for other reasons, then these days will not be taken into account in the calculations.

Their number must be subtracted from the total number of working days and only then carry out further calculations.

The calculation of average earnings upon dismissal after the decree cannot be carried out on the basis of income for the last year, since there simply were none. In this case, to determine the average rate, the tariff rate for a specific previously occupied position is taken, and on the basis of it, the severance pay is calculated.

Unused vacation

Calculation of average earnings upon dismissal to compensate for unused vacation is also carried out on the basis ofaverage daily income, since representatives of far from every profession can afford a vacation for more than a month. The standard period is 28 days of rest per year, and unused, usually even less. To calculate the amount due, all you need to know is your average earnings.

Next, you should determine the number of vacation days at the time of dismissal. It is very important to understand that all calculations are made not from the beginning of the calendar year, but from the moment the employee is hired. That is, if an employee was officially employed on August 18, 2017, then he receives the right to his first full-fledged vacation only from August 17, 2018. Moreover, if during the worked period he took a free vacation, skipped working days or was on maternity leave, the length of service increases for this period, that is, the vacation will be taken later. Sick leave and parts of paid holidays do not affect the change in seniority.

Also not included in the length of service is a worked period of less than half a month.

Determining the number of days

Only on the basis of the exact number of unused rest days, compensation for leave upon dismissal is calculated. The calculation of average earnings in the future helps to find out a specific amount.

So, in order to determine how many days of rest are required for a specific worked period, and not a full year after employment, it is necessary to multiply the number of full months by a factor of 2, 33. Incomplete pay periods (not multiples of a whole month) are not taken into accountgenerally. The result is always rounded towards the employee.

For example, if an employee has worked at an enterprise for 10 months, then he is supposed to be compensated for 24 days of unused vacation, since 10 × 2, 33=23.3 days.

Compensation calculation

Directly, the amount of compensation can be determined by multiplying your average daily earnings by the number of unused days of rest. The calculation of average earnings upon dismissal for compensation is very simple, but also has its own nuances. So, if the employee's length of service at the enterprise is 11 months, then the amount of the payment should cover all 28 unused days of rest. Of course, the condition is relevant only if the employee has not taken part of the vacation during this period.

If by the time of dismissal part of the paid vacation was used, then this number of days should be deducted from those due at the time of calculation and only the remaining days should be paid. For example, an employee, having worked for six months, took 7 days of rest on account of his vacation. At the time of dismissal, 11 months after his admission, he must be compensated for 28 exits, but 7 of them have already been used. This means that in fact, upon dismissal, the employee will receive compensation for only 21 days.

If the dismissal is not the fault of the employee, then the company is obliged to compensate him for the entire annual leave, even if only a few months have been worked at that moment.

What is not taken into account in the calculation

Calculation of average earnings upon dismissal is carried out onthe basis of not all periods. If the employee was on vacation, sick leave, parental leave or used extra days off, then such periods are not included in the calculations. Also exceptions are periods of strikes and any downtime of the enterprise, in which neither the managers nor the staff are to blame. These days must be taken away from the total work experience.

Payout indexation

If during the billing period of work at the enterprise the employee's salary or tariff rate increased, then the calculation of average earnings will be carried out in a completely different way. The dismissal of an employee must be accompanied by full compensation, taking into account all the nuances. In this case, the average income should be indexed, that is, multiplied by the salary increase coefficient for the entire billing period. The calculation of this coefficient is carried out by dividing the increased salary by the one that was earlier.

For example, earlier an employee's income was 15,000 rubles, and after the increase it became 18,000. You need 18,000 / 15,000=1, 2 - the desired indicator. It is by the coefficient obtained in the calculation that in the future it is necessary to multiply the average earnings received for the billing period, taking into account bonuses and allowances, but only those that are not tied to average earnings.

Fixed amounts are also not indexed, that is, you need to multiply the salary with those increases that are determined directly by the tariff rate as a percentage.

Calculation example

Taking into account all the possible abovenuances of accrual, an example of calculating average earnings upon dismissal is as follows.

For the data used, we take the full billing period per year, from which the employee received 20 thousand rubles for 8 months, then his salary rose to 30 thousand. While working for a low salary, the employee took sick leave for 15 days.

So, since the salary has gone up, the first step is to determine the increase factor. To do this, 30 tons / 20 tons \u003d 1, 5. Taking into account this indicator, the entire income for 12 months is determined, but first you need to determine the salary for that part of the month during which the sick leave was used.

So 31 - 15=16 paid days. Further (16 × 20000) / 31=10322 rubles per month with sick leave.

Total income is (20000 × 7 × 1.5) + (10322 × 1.5) + (30000 × 4)=345483 rubles.

Total working days is (29.3 × 11) + (29.3 / 31 × 16)=338.

Now the average daily earnings can be paid 345483 / 338=1022 rubles.

Conclusion

It is very important to know exactly your average income when you leave a company. This helps to independently control the work of accounting and notice errors in a timely manner. Based on average data, each employee receives compensation for unused vacation, severance pay upon dismissal and payment for temporary disability sheets. No social payments should be taken into account in this case.