How To Calculate Severance Pay When Reducing

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How To Calculate Severance Pay When Reducing
How To Calculate Severance Pay When Reducing

Video: How To Calculate Severance Pay When Reducing

Video: How To Calculate Severance Pay When Reducing
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According to the Labor Code of the Russian Federation, in case of liquidation of the organization, reduction of the staff of the organization, the employer is obliged to pay severance pay in the amount of the average monthly salary to each employee. If an employee applied within 14 days after dismissal to the CPC, he can receive an average monthly earnings for one more month.

How to calculate severance pay when reducing
How to calculate severance pay when reducing

Instructions

Step 1

To determine the amount of benefit in case of reduction, you need to calculate the average monthly earnings. It is calculated in accordance with Regulation N 922, approved by the Decree of the Government of the Russian Federation of 12.24.2007.

Step 2

To calculate the average monthly earnings, you first need to calculate the average daily earnings. It is calculated by dividing the amount of wages actually accrued for the days worked in the billing period, including bonuses and remuneration, by the number of days actually worked during this period (paragraph 5, clause 9 of Regulation N 922). DZsr = Amount of wages for 12 months / Number of days worked. For the billing period, you need to take the last 12 calendar months preceding the time the average wage was saved. The calendar period is counted from the 1st to the 30th (31st) day inclusive.

Step 3

The payments that are taken into account when calculating the average earnings include all types of payments provided for by the remuneration system. Amounts are excluded when the employee did not work, was on vacation or sick leave, or on parental leave.

Step 4

Determine the start and end date of the month for which the benefit will be paid, the number of working days in the month (for example, January - only 16 working days). If an employee leaves in November 2011, then the billing period will be from 01.11.2010 to 30.10.2011.

Step 5

To calculate the average monthly earnings that are eligible for the payment of severance pay in case of redundancy, you need to multiply the average daily earnings by the number of working days of the first and then the second months after dismissal.

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