How To Calculate The Seniority Ratio

Table of contents:

How To Calculate The Seniority Ratio
How To Calculate The Seniority Ratio

Video: How To Calculate The Seniority Ratio

Video: How To Calculate The Seniority Ratio
Video: formula to calculate seniority in excel | seniority calculator 2024, May
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When calculating the amount of the pension, the seniority coefficient is applied. This value depends on the length of service of the employee. The state social benefit is calculated by multiplying the average monthly salary of a specialist by this coefficient. The latter is determined on the basis of a document that confirms the employee's labor activity.

How to calculate the seniority ratio
How to calculate the seniority ratio

Necessary

  • - production calendar;
  • - the employee's work book or other document confirming the employee's work experience;
  • - acts of local government;
  • - calculator.

Instructions

Step 1

Calculate the total seniority of the employee. Use his work book, other documents confirming the performance of duties in a particular company. These can be contracts, certificates from the place of work, copies, extracts from orders. Determine the periods of work in each firm where the employee worked. To do this, take the start and end dates of employment in organizations.

Step 2

Add up the periods of employment in enterprises. Before that, determine the number of experience of a specialist in calendar days.

Step 3

Determine the number of years the employee has been working. Take advantage of the production calendar. For whole years, take 360 days, which is regulated by federal law. Determine the number of months of experience as a specialist. Take 30 days for a whole month.

Step 4

Calculate the seniority ratio. Take advantage of the regulations of the regional government. Take from these documents the value of the assessment of one year of the employee's work experience. For each year, local authorities establish such a value. Multiply the fixed number by the calculated number of years of service. When calculating, you need to take experience in years. If, for example, a specialist has 17 years and 9 months of work experience, when finding the coefficient, take 17 + 9/12. Divide the result by one hundred percent.

Step 5

When calculating the size of the pension, the seniority coefficient is multiplied by the employee's average monthly earnings. The latter is found by dividing the total amount of earnings for the entire period of performance of duties by the employee by the number of months in this period. Moreover, the remuneration for a month of work of a specialist should not be lower than the minimum wage established at that time by the local authorities.

Step 6

The above method determines the amount of the pension until 01.01.2002. After this period, the state benefit depends on the funds transferred through the funded system. After the entry into force of the decree of the President of the Russian Federation "On the introduction of a funded system for calculating the amount of pension", social benefits began to depend on the amount of insurance contributions and voluntary contributions.

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