How To Calculate Dismissal Compensation For Unused Vacation In

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How To Calculate Dismissal Compensation For Unused Vacation In
How To Calculate Dismissal Compensation For Unused Vacation In

Video: How To Calculate Dismissal Compensation For Unused Vacation In

Video: How To Calculate Dismissal Compensation For Unused Vacation In
Video: Current Liabilities Accounting (Compensated Absences, Employee Vacation, Sickness & Holiday Pay) 2024, November
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The mechanism for calculating compensation for unused vacation in the Labor Code of the Russian Federation is not spelled out for all categories of workers. But there is a common method.

How to calculate dismissal compensation for unused vacation
How to calculate dismissal compensation for unused vacation

Instructions

Step 1

First, calculate the average daily or hourly wage of a retiring worker. The rules for calculating income are established by Article 139 of the Labor Code of the Russian Federation and the Regulations on the specifics of the procedure for calculating average wages.

Use the last three calendar months as the billing period (unless a different billing period is stipulated by the collective agreement). Average daily earnings are calculated by dividing the amount of wages accrued during this time by the number of days worked.

Step 2

Next, find out the period for which the employee is entitled to vacation. If a person has worked in the organization for a whole year (which includes the vacation itself), then he is supposed to walk 28 calendar days. According to clause 8 of the Rules on regular and additional vacations, full compensation is due to an employee who has worked for 11 months. If the resigning person has not worked this period, compensation is paid to him in proportion to the number of months worked. Surplus days that are less than half a month are excluded from the calculation, and surpluses that are more than half are rounded up to a whole month (clause 35 of the same Rules).

Step 3

Based on the amount of time worked, calculate the number of unused vacation days. If a year is supposed to be 28 days, then for 1 month of work there are 2, 33 days of rest (28 days / 12 months). Based on this, it is easy to calculate that, for example, for 5 working months it is necessary to compensate for 11, 65 days of vacation.

For employees who have entered into a short-term contract for up to two months, compensation is paid at the rate of two days per month of work.

Step 4

Now calculate the amount of compensation. To do this, multiply the average daily earnings by the number of unused vacation days. For example, 250 * 11, 65 = 2912, 5. This will be the amount of compensation.

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