Many benefits that employees are entitled to under labor law are calculated based on the employee’s average earnings.
Dear readers! To solve your specific problem, call the hotline or visit the website. It's free.
8 (800) 350-31-84
In particular, this method is used to calculate vacation pay and compensation for unused vacation upon dismissal. Let's consider what amounts should be included in average earnings.
Number of vacation days to calculate
Most often, vacations are granted in calendar days. Standard paid basic leave is 28 calendar days. Moreover, the employee can take time off not immediately, but in parts. The main thing is that at least 2 weeks of vacation should be taken off continuously.
Some categories of workers are entitled to extended basic leave (Article 115 of the Labor Code of the Russian Federation). For example, workers under 18 years of age must rest 31 calendar days, and disabled people - 30 (Article 267 of the Labor Code of the Russian Federation, Article 23 of the Federal Law of November 24, 1995 No. 181-FZ)
Labor legislation also provides for additional leaves for employees (Article 116 of the Labor Code of the Russian Federation).
For the calculation, it is important to exclude all non-working holidays from vacation days. That is, all all-Russian holidays established by Art. 112 of the Labor Code of the Russian Federation, and holidays established in a specific region by the law of the subject of the Russian Federation (part 1 of article 72 of the Constitution of the Russian Federation, article 22, 120 of the Labor Code of the Russian Federation, article 4 of the Federal Law of September 26, 1997 No. 125-FZ, clause. 2 letters of Rostrud dated September 12, 2013 No. 697-6-1). However, weekends are still included in the calculation.
Important! Non-working days to which holiday weekends are postponed are included in the calculation. If the day off coincides with a holiday, then the Government of the Russian Federation issues a resolution setting the date to which the day off and holiday is transferred. For example, in 2021, February 23 fell on a Saturday, and the day off from that day was moved to May 10. If an employee is on vacation on May 10, this day must also be paid.
Are the amounts of previous vacation pay taken into account when calculating the next vacation?
When planning the next vacation, an employee does not always have an idea of the accounting operations that accompany the process of determining the amount of compensation for the vacation period, and when calculating vacation pay, are vacation pay for the previous period taken into account?
Expert opinion
Novikov Oleg Tarasovich
Legal consultant with 7 years of experience. Specializes in criminal law. Member of the Bar Association.
The answer to these questions is Resolution No. 922 of the Government of the Russian Federation. This document specifies both the indicators for enrollment and exclusion by time interval.
In order to understand whether vacation pay for the previous period is included in the calculation of vacation pay, you need to know what is excluded from the calculation period:
- business trips;
- sick leave;
- days of rest that are additional;
- strikes and downtime;
- exemption from labor, while maintaining the average salary for the employee. This item implies a vacation period.
Determining the billing period
Calculate vacation pay in a few clicks in the Kontur.Accounting web service! Get free access for 14 days
As a general rule, the billing period for calculating average daily earnings is defined as 12 calendar months preceding the month in which the first day of vacation falls (Article 139 of the Labor Code of the Russian Federation, clause 4 of the Regulations, approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922 , hereinafter referred to as the Regulations).
It is necessary to exclude from the billing period all the time when the employee (clause 5 of the Regulations):
- Received payment in the form of average earnings (with the exception of breaks for feeding the child in accordance with the law). For example, the time of a business trip or other paid leave;
- Was on sick leave or maternity leave;
- Didn’t work due to downtime through no fault of his own;
- Did not participate in the strike, but due to it could not work;
- Used additional paid days off to care for disabled children and people with disabilities since childhood;
- In other cases, he was released from work with full or partial retention of wages or without pay. For example, vacation time at your own expense or parental leave.
It may turn out that in the 12 months preceding the vacation there was no time at all when the employee was paid wages for the days actually worked, or this entire period consisted of time excluded from the calculation period. In this case, as the calculation period you need to take the 12 months preceding the first mentioned 12 months (clause 6 of the Regulations).
If the employee did not have actual accrued wages or actually worked days during the billing period and before it began, then the days of the month in which the employee goes on vacation are taken as the billing period (clause 7 of the Regulations).
A collective agreement or local regulatory act may provide for other billing periods for calculating average wages, if this does not worsen the situation of workers (Article 139 of the Labor Code of the Russian Federation).
What indicators can affect the amount of vacation pay?
Every employer is obliged to provide employees with annual leave on the condition that they retain their jobs and provide average earnings for this period.
When calculating the amount of vacation pay, the employer should adhere to the standard algorithm. So, when calculating average earnings, he should focus on Art. 139 of the Labor Code and the Regulations on the specifics of calculating average wages according to Government Decree No. 922 of 2007.
The amount of vacation pay, in addition to average earnings, is affected by the time spent by the employee in the excluded periods, as well as the period of work taken into account.
Determination of earnings for the billing period
Calculate vacation pay in a few clicks in the Kontur.Accounting web service! Get free access for 14 days
All payments accrued to the employee, which are provided for by the employer’s payment system, are taken into account, regardless of the sources of these payments (Article 139 of the Labor Code of the Russian Federation). In paragraph 2 of the Regulations, approved. By Decree of the Government of the Russian Federation of December 24, 2007 No. 922, there is an open list of such payments.
The following cannot be included in the calculation of average earnings:
- All payments accrued to the employee for the time excluded from the payroll period. They are listed in clause 5 of the Regulations. For example, average earnings for days of business trips and in other similar cases, social benefits, payments for downtime;
- All social benefits and other payments not related to wages. For example, financial assistance, payment of the cost of food, travel, training, utilities, recreation, gifts for children (clause 3 of the Regulations);
- Bonuses and remunerations not provided for by the remuneration system (clause “n”, clause 2 of the Regulations).
Bonuses (other remunerations) provided for by the remuneration system are taken into account taking into account certain features established by clause 15 of the Regulations.
Questions from our readers
Ask your question in the comments below and get a free answer! |
Calculation of average daily earnings
Calculate vacation pay in a few clicks in the Kontur.Accounting web service! Get free access for 14 days
Knowing the billing period and the total amount of earnings for this period, you should determine the employee’s average daily earnings:
Average daily earnings = Earnings for the billing period / (Number of full months in the period × 29.3)
29.3 in the formula corresponds to the average monthly number of calendar days. Moreover, the billing period is considered to be fully worked if in each month of this period there are no days excluded from the billing period (days of temporary disability, business trips, vacations, downtime, etc.).
If the billing period is not fully worked out, the formula is applied:
Average daily earnings = Earnings for the billing period / (29.3 × Number of fully worked months in the billing period + Number of calendar days in incompletely worked months of the billing period)
Moreover, for each month that is not fully worked, you need to apply the formula:
The number of calendar days in an incompletely worked month = 29.3 / The number of calendar days of the month × The number of calendar days falling within the time worked in a given month.
Example
The employee has been working for the organization since August 1, 2021. On July 15, 2019, he goes on vacation for 14 calendar days. In this case, the billing period is 11 months - from August 1 to June 30. During the billing period, the amount of earnings for calculating vacation pay amounted to 600,000 rubles. There were no salary increases in the organization during this time.
In March, the employee was on a business trip for 21 calendar days. The remaining days of March are 10 (31 − 21). Accordingly, March is an incomplete month of the billing period, from which only 9.5 days are taken to calculate vacation pay (29.3 × 10 / 31).
In October, the employee was sick for 11 calendar days. The remaining days of October are 20 (31 − 11). Accordingly, October is also an incomplete month, from which only 18.9 days are taken to calculate vacation pay (29.3 × 20 / 31).
There are 9 fully worked months left in the billing period (11 − 2). Accordingly, the average daily earnings of an employee will be:
600,000 rub. / (29.3 days × 9 months + 9.5 days + 18.9 days) = 2,054.09 rubles.
The employee must be paid the amount of vacation pay of RUB 28,757.26. (RUB 2,054.09 × 14 days).
For employees who receive vacation in working days, the average daily earnings are calculated based on the number of working days according to the calendar of a 6-day working week:
Average daily earnings = Salary accrued for the entire period of work / Number of working days according to the calendar of a six-day working week, which falls on the time worked by the employee
If the billing period has not been worked out at all and there was no salary immediately before the vacation (for example, the employee returned from maternity leave or the employee was on a long business trip and immediately goes on vacation), then the formula is applied (clause 8 of the Regulations):
Average daily earnings = Salary (tariff rate) / 29.3
Which payments are included in the calculation base and which are not?
Certain provisions of the labor code clearly indicate which days and payments are used when calculating vacation pay and which are not. In this regard, we will create a small table:
- employee salary;
- percentage of revenue;
- payment in kind;
- monetary allowances for employees of government agencies and municipalities;
- fees from media and cultural organizations;
- allowances and surcharges.
| Payments that are excluded from the base | Amounts to be taken into account |
|
Sometimes employees are paid bonuses that are permanent and secured by internal regulations. These payments are also subject to accounting when calculating vacation benefits.
This is important to know: Vacation followed by dismissal from the Ministry of Internal Affairs
Right to annual leave
Every person, even those who are especially sensitive to their work responsibilities, needs rest, since strength needs to be restored, and personal issues also need to be resolved, all of which naturally takes time.
For these purposes and tasks, the legislator provides for annual paid leave. The key word in this phrase is “annual”, especially this time period is important for those who got a job not so long ago, as it will be when they can take a break from routine everyday life.
According to the current legislation in our country, the minimum period after which an employee can go on another vacation is 6 months. But what should you do if a person has not worked for a new employer for six months, and you need a vacation now?
Meanwhile, official documents also take into account this scenario, because there is a clarification that leave can be issued earlier with the agreement of the parties, that is, the employee and the employer.
Regardless of what time period has passed since the conclusion of the employment contract, if necessary, you should try to negotiate a vacation with management, but you need to take into account one important aspect: if the cherished 6 months have not yet expired, then the vacation can only be administrative, that is, unpaid.
Payments included in wages and taken into account when paying vacation pay in 2021
To calculate SDZ, standard payments are taken into account:
- payment according to salaries, for time-based and piecework work;
- interest on revenue, commissions;
- payment for materials, raw materials and finished products;
- salaries for elected officials, deputies, municipal employees;
- fees in cultural and art organizations, media editorial offices, copyright patents;
- additional payments and allowances for length of service or length of service, night work, class, professional skills, increasing the volume of work, working with classified information, combining and expanding the scope of work, leading a team or other team;
In addition, at enterprises there are additional permanent bonuses and purely internal additional payments, fixed by the collective agreement and individual employment contract. All wages and additional payments and remunerations included in the collective agreement according to the collective agreement are accepted for calculating vacation pay. The specifics of including bonuses in wages based on the results of a quarter or year are explained in detail in the regulation “On the specifics of the procedure for calculating average earnings.”
This provision provides guidance to all employers regardless of legal affiliation. In case of violations and infringements of the rights of employees, the employer bears administrative responsibility , and the consequence may be fines and penalties from the fiscal authorities, since underestimation of vacation pay entails underpayment of taxes.
Features related to sick leave
Childbirth or pregnancy, temporary disability - situations that anyone can face. For these cases, the state introduced certain payments guaranteed to employees. These are the so-called benefits. Produced at the expense of the enterprise’s own funds, or money from the Social Insurance Fund. Government Decree No. 375 and Article 14 of the Federal Law are the main materials from which information is taken in such cases.
The average salary is also taken into account when determining such benefits. The following conditions assume a basis in the form of a minimum amount of remuneration:
- Lack of income for employees two years before the occurrence of an insured event.
- The average profit level is less than the minimum wage.
- Short insurance period, up to 6 months or less.
- There are reasons to reduce benefits.
What is included in the average salary?
First of all, we are talking about wages. This applies to any of its manifestations.
That is, they take into account the reward for the following fulfilled conditions and actions:
- Commissions and percentages of revenue after products are sold. Such transfers come after the work is completed.
- With piece rates.
- With tariff rates, salaries.
- Separate accounting is required for wages that are not in cash.
This basis is introduced when calculating the average salary:
- Bonus payments, standard remuneration.
- Compensation for labor conditions.
- Additional payments with allowances to salaries, tariff rates. This is usually associated with leading teams, difficult conditions, and so on.
Article 139 of the Labor Code of the Russian Federation is one of the documents devoted to just such a calculation. In daily activities, any company encounters this indicator. But most often it remains relevant for managers and accountants, and other employees associated with the field of finance.
About other additional nuances
The main thing is to take into account only income associated with a person’s main job.
The following types of payments are not added to wages:
- Inheritance.
- Income from business activities.
- Deposit interest.
- Dividends, and so on.
You cannot use profits earned at another workplace; they are accounted for separately. The prohibition also applies to any transfers received illegally.
The calculation includes all payments of a regular nature. One-time or regular bonuses are not added to the total amount of the wage fund. But the funds must be counted if such types of payments are monthly.
Calculation is carried out two working weeks in the case of employees who are hired only for a certain season.
When is it profitable to relax?
If you can independently plan the time of your next vacation, then it is better to choose when you will receive the maximum income. It consists of two components: earnings for actual days of work and vacation pay. Therefore, it is advisable to go on vacation in the months with the largest number of working days. For example, in 2021 these are August, September and October. The most unfavorable months are January and May.
Let's look at examples.
Example 1. An employee goes on vacation from August 17, 2021 for 14 calendar days. His monthly salary is 40,000 rubles or 480,000 rubles per year. There are no official holidays in August, so the number of working days will be 21.
We calculate vacation pay:
- Number of days of work = 29.3 * 12 = 351.6 days.
- Average daily earnings = 480,000 / 351.6 = 1,365.19 rubles.
- Vacation pay = 1,365.19 * 14 = 19,112.66 rubles.
We calculate wages for working days in August:
- We have 21 working days and 10 days worked in August.
- Salary = 40,000 / 21 * 10 = 19,047.62 rubles.
Total the employee will receive: 19,112.66 + 19,047.62 = 38,160.28 rubles.
Example 2. The employee from the previous example goes on vacation from January 9 for 14 days. In January, the number of working days is 17. Vacation pay will remain unchanged - 19,112.66 rubles. But the salary for the days of actual work will change: 40,000 / 17 * 7 = 16,470.59 rubles. The total income will be: 19,112.66 + 16,470.59 = 35,583.25 rubles. This is RUB 2,577.03 less than what the employee would have received upon leaving in July.
About other features of accrual of vacation pay
Fulfillment of such conditions leads to the appearance of some nuances in the calculation of earnings:
- Payment of bonuses.
- Salaries increased.
An increase in average earnings is inevitable with an increase in enterprise rates, tariffs, and other remunerations. The exception is situations when this happens due to bonuses or allowances, although the main indicator remains the same.
Indexation is determined by the coefficient under such circumstances related to average earnings. The calculation of the relationship between salaries for the pay period and the amount of remuneration after promotions is individual for each employee.
With repeated increases in coefficients, you end up with several. If necessary, monthly benefits are also taken into account, the amount of which has also increased.
The order of indexation is determined by the period in which the increase occurred. There are three main options:
- During vacation.
- Before the holiday begins, but after the end of the settlement period.
- During the billing period.
To walk or not? Can an employee not go on vacation?
Going on vacation is a guaranteed human right, but not an obligation. From which it follows that, in principle, he can avoid taking long weekends. However, for the second participant in the employer’s labor relations, such a scheme is not so harmless.
Since the law establishes a fine for an employee’s failure to go on vacation for 2 years. That is why, towards the end of the year, enterprises begin internal accounting of employees who have not left their jobs for the cherished 28 days during the year.
