How To Calculate Vacation Pay Upon Dismissal

Table of contents:

How To Calculate Vacation Pay Upon Dismissal
How To Calculate Vacation Pay Upon Dismissal

Video: How To Calculate Vacation Pay Upon Dismissal

Video: How To Calculate Vacation Pay Upon Dismissal
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According to Russian labor law, every employee working under an employment contract, upon dismissal, has the right to receive compensation for unused vacation days. Moreover, this condition applies even if he has worked in the organization for less than 6 months.

How to calculate vacation pay upon dismissal
How to calculate vacation pay upon dismissal

Instructions

Step 1

First of all, calculate compensation for unused vacation days in accordance with the Labor Code of the Russian Federation. Based on this regulatory document, we can conclude that you need to calculate the average daily earnings and the billing period.

Step 2

Calculate the same billing period. That is, count the number of months for which compensation is due. If the month is not fully worked, and the total number of days worked is less than 15, exclude it from the length of service. In the event that an employee was forced to be absent from the workplace, for example, in the case of late payment of wages, this period is included in the length of service. All this information you can get from the timesheet.

Step 3

Determine the amount of accrued wages for the above billing period. To do this, use the payroll. Add up all the amounts that are taxable.

Step 4

Calculate your average daily earnings. To do this, divide the amount of accrued salary by 12 (the number of months in a year), and then by 29, 4 (the average monthly number of calendar days). If the billing period is less than 12 months, then indicate another date.

Step 5

According to Russian law, an employee is entitled to leave of 28 calendar days per year. Thus, for each month, he is entitled to 28 days / 12 months = 2.33 days / month. Now determine the required number of vacation days. To do this, multiply 2, 33 by the number of months in the billing period. For example, 7 months * 2, 33 days = 17 days.

Step 6

Now multiply the average daily wage by the number of unused vacation days. The resulting number will be the amount of dismissal compensation that must be paid to the employee on the day of termination of the contract.

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