Numerous requests from the ladies from accounting led to the creation of this calculator as the first and most intricate stage for the calculation of compensation for unused leave. I'm going to show the calculation itself in the following article. Here we will try to understand the calculation of average wage which is used to calculate leave allowance, compensation for unused leave, compelled idle and other payments provided by the legislation. Our calculator is designed to meet the Russian Federation Government Decree of 24.12.2007 N 922 "On specifics of calculation of average wages" in the edition of Russian Federation Government Decree of 15.10.2014 N 1054.
For calculation, you have to fill the chart, where the periods of work, payments for the last 12 months, and also changes of employee's wage during this time and the period of the average wage are set. If you want to calculate the average wage not for leave allowance but for forced absenteeism you will have to specify the number of days worked for all periods.
If for the last 12 months there were no increase in the payment you can set the whole sum with one row ( state the sum in the "paid on salary" field). If there were increasements, all payments should be divided into periods before the increase and after the increase, as well as split the payments into two categories "paid on salary" and "other payments". Fixed salary and fixed interest payments go into the "paid on salary" category and premiums, interest set in a range of values, and other payments set in the absolute amount go into the "other payments" category.
If the increase of salary happened on average wage period, such an increase has to be set in one line with the date of increase in fields "start date" and "end date" and fill in the "Salary" field. Other fields are unnecessary.
As an example, the payment for 2-week paid leave from 6 to 19 June is calculated for the employee that had 3 salary raises for the last year one of which was during his leave. The description is below the calculator.
According to the labor legislation, the average salary of the employee is calculated based on the actual payments to the employee and the working time in the last 12 months. Average earnings payments, compensation for temporary disability or maternity leave, periods of inactivity due to the fault of the employer, inability to work due to the strike of the workers, paid care days for disabled children and a lifelong disabled person as well as other cases provided by the legislation of the Russian Federation are excluded from the settlement period.
Average daily wage
The average salary is calculated based on the Average daily wage by multiplying it by the number of calendar and working days in the payable period.
Method of accruing leave allowance and compensation for unused leave
Average daily earnings for calculating leave allowance and compensation for unused leave is calculated as follows:
- the amount of actual payments;
- the number of full worked months;
- the number of partially worked months;
- number of calendar days worked parially in this month i;
- the number of actually worked days in partially worked month i;
Method of calculation for the remaining cases
For other cases, the average daily wage is calculated much simpler - the number of payments for the period divided by the number of working days.
Accounting for average earnings increase
With wage increases, average earnings for periods before the increase shall be increased by the factor obtained by dividing the tariff rate (salary), after the increase by the tariff rate (salary) before the promotion. If the increase occurred in the period of preservation of the average wage the subject of increase is only the part of the period from the date of an increase, until the end of the average wage payment period. In the case of payment of the average wage for the forced absence, the ratio is calculated by dividing the tariff rate on the date of return to work after the completion of absenteeism on the tariff rate in the billing period.
Indexing is not subject to all payments, but only tariff rates (salaries), remuneration, and payments tied to tariff rates, salaries, remuneration in the form of fixed interest.
Additional payments established in absolute values and the range of percentage of tariff rates (salaries, remuneration) are not subject to indexation.