Calculation of the average wage and its features of accrual

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

Wages are rewards for work. Its size depends on the qualifications of the employee, the complexity of the work performed, its conditions, quantity and quality. The salary also includes compensation payments, allowances, incentive payments (bonuses) and additional payments.

Calculation of the average wage is carried out in a unified manner, provided for in the Labor Code.

The calculation of the average monthly wage takes into account all types of payments that are determined by the unified wage system carried out by the employer, regardless of what sources were used for these payments.

Under various modes of work, the calculation of the average wage is determined based on the wages actually accrued to the employee and his actual output. The calculation of the average salary is calculated for the last 12 calendar months before the period in which the employee received the average salary. It should be borne in mind that the calendar month is the period from the first to the thirtieth (thirty-first) day of the corresponding months inclusive, including in February from the first to the 28th (29th) day.

Payroll, formula:

З=P/R, where P is labor costs;

R is the average number of employees.

The calculation of the average daily earnings when paying for vacations and paying compensation for unused vacations is carried out in the same way as for the average wages for the last 12 calendar months, by dividing the amounts of accrued wages by 12, and then dividing by 29, 4 (average monthly sum of calendar days).

In the employment contract, another calculation of the average wage is also possible. Under it, the period is provided for by local regulations, but only if this does not worsen the condition of workers in any way.

Types of benefits that apply to eligible employers include:

• wages accrued at tariff rates or salaries for the period worked;
• salaries accrued for work performed as a percentage of revenue;
• wages accrued for work performed at a piece rate;
• salary not received in cash;
• cash rewards;
• etc.

When calculating salaries, social payments or other payments, such as material assistance or payments for utilities, tuition, travel, rest, meals and other payments, are never taken into account.

In the case when the employee did not actually receivethere were no accrued wages or actually worked days at all, then such earnings are determined from the amounts of wages for previous periods equal to the calculated ones.

In various cases, the average monthly earnings of workers who have worked the full norm of all working hours and fulfilled the labor norm cannot be less than the minimum wage established by the Federal Law.

Payroll is a labor-intensive job that requires attention and certain accounting skills.