Every officially employed person has the right to annual leave, which, according to the Labor Code of the Russian Federation, is paid by the employer. Let's look at the basic rules for calculating vacation pay and learn how to use an online calculator to quickly calculate vacation pay.
To calculate vacation pay, follow the Labor Code of the Russian Federation and Government Resolution No. 922 of December 24, 2007 (hereinafter referred to as the Resolution), which regulates the determination of average daily earnings.
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Calculation formula
Vacation pay is calculated according to the formula:
Vacation pay = Average daily earnings x Duration of vacation in calendar days
Note! The correctness of calculating average daily earnings depends on:
- the amount the employee will receive during the rest period;
- the amount of personal income tax that the employer will transfer to the budget;
- the amount of contributions accrued towards vacation pay.
To correctly calculate your average daily earnings, follow the algorithm presented below.
Payment of unused vacation days upon dismissal
Along with other payments, the company must accrue money to the dismissed person for the balance of vacation days unused as of the date of full calculation. The amount of compensation due in such a case is calculated using the formula:
Average daily earnings × Remaining unused vacation in calendar days
Average earnings are determined by rules similar to those used for vacation pay. However, the procedure for determining the remaining unused vacation days must be considered separately. To do this you need:
- Determine the total vacation period of the employee from the first day of his work in the organization in years and months.
- Based on data on length of service, the total amount of leave entitled to an employee from the first day of work in the organization is calculated. To do this, the number of full years and months of service for leave is determined. At the same time, for each full month the employee is entitled to 2.33 days of vacation (28 days / 12). If the remainder after converting days into years and months of service is less than 15 days, then this period is not taken into account; if it is equal to or more than 15 days, then it is rounded up to the whole month.
- The total number of vacation days used by the employee during work is summed up.
- The total number of vacation days used is subtracted from the total number of vacation days accrued from the start of employment to the date of termination.
In the form of a formula, this calculation will look like this:
28 × Number of partial years of experience + 2.33 × Number of full months of experience - Number of vacation days used
Attention!
All vacation pay is fully subject to personal income tax and insurance contributions.
Algorithm for calculating average daily earnings and accrual of vacation pay
1. Determine the list of payments made to the employee.
The calculation of average daily earnings includes payments prescribed in the regulations of the organization that were accrued to the employee in the billing period. The source of these payments does not matter. But a number of charges are not included in this list:
- various social payments in the form of financial assistance, travel, training, etc. (clause 3 of the Resolution);
- payment for business trips, downtime, periods of incapacity, etc. (clause 5 of the Resolution);
- compensation for the use of personal property in work, etc.
2. Select the billing period.
The calculation period for vacation pay is 12 calendar months before the vacation.
Important! A calendar month is the period from the 1st to the 30th or 31st of the month (for February - from the 1st to the 28th or 29th, depending on the year). For example, if the vacation falls in November 2021, then the billing period will be 11/01/2018 - 10/31/2019.
There are situations when in the 12 months preceding the vacation the employee had no earnings or did not actually work. In this case, clause 6 of the Resolution prescribes calculating the employee’s average daily earnings from the amount of income received for the previous period, similar to the calculated one. If in fact the employee did not work and did not receive wages both in the billing period and in the period preceding it, then the average daily earnings are calculated based on earnings accrued for the actual days of work in the month when the event occurred in connection with which the average daily earnings are retained (p 7 Regulations).
When calculating vacation pay, periods and amounts paid during these periods are taken into account when the employee was present at the workplace in accordance with the work schedule under the employment contract. According to paragraph 5 of the Resolution, when calculating average earnings, time is excluded from the calculation period, as well as amounts accrued during this time, if:
- the employee was accrued disability benefits or “maternity” payments;
- the employee did not work due to downtime for which the employer is to blame, or for reasons that cannot be influenced by either the first or the second, etc.
3. Calculate average daily earnings.
To calculate payment for vacation, which is provided in calendar days, the average daily earnings are determined as wages for the billing period, divided by 12 and 29.3. Where 12 are the months of the billing period, and 29.3 is the average monthly number of calendar days.
If there are months not fully worked in the billing period, the average daily earnings are calculated as follows:
earnings for the billing period / (29.3 x number of months fully worked + number of calendar days in months not fully worked)
The number of days of an incompletely worked calendar month = 29.3 / the number of calendar days of an incompletely worked month x the number of calendar days worked in this month (clause 10 of the Resolution).
4. Withhold personal income tax, pay vacation pay, and calculate contributions.
The amount of vacation pay is determined by multiplying the average daily earnings by the number of calendar days of vacation. When the vacation pay calculation is done, you need to allocate personal income tax and pay the employee the amount minus tax.
According to Art. 136 of the Labor Code of the Russian Federation, vacation pay is paid no later than three days before the start of the vacation. For personal income tax purposes, the day vacation is paid is the day the employee receives income. The deadline for tax payment is until the last calendar day in the month of payment of vacation pay (Article 226 of the Tax Code of the Russian Federation).
Contributions from the amount of vacation pay must be accrued in the month of their accrual. The deadline for transferring contributions to the budget is until the 15th day of the month following the accrual of vacation pay (Article 431 of the Tax Code of the Russian Federation).
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Principles of self-calculation
Vacation pay can be calculated under different conditions, taking into account different information. General order:
- We determine wages along with all required additional payments.
- Let's find out the number of vacation days that can be provided for this period.
- If necessary, the number of months worked.
- If necessary, the number of unused vacation days.
Provided that the billing period is fully worked out
First, we need to calculate the average daily earnings (ADE) taking into account the average salary (AS). To do this we use the formula:
After this, you need to calculate vacation pay using the formula:
Example:
Alexey earned 400 thousand rubles in a year - SZ, he goes on vacation for 28 days.
We calculate SDZ using formula 1:
400,000\(12*29.3) = 400,000\251.6 = 15,898.25 rubles
We calculate OT using formula 2:
15 898,25 * 28 = 44 515, 03.
Answer: 44,515.03 rubles.
Incomplete completion of the pay period by the employee
The calculation period is 12 months, if the employee worked less than this period, then the calculation is made as follows:
And we apply the formula from the first option:
Example:
Sergey has been working for the company for 8 months and decided to go on vacation for 20 days. During this period, according to accounting records, he received earnings of 170,000 rubles.
We calculate using 1 formula:
SDZ = 170,000\ (8 * 29.3) = 725.25 rubles
Let's use formula 2:
OT = 725.25 *20 = 14505.11 rubles
Answer: 14505.11 rubles
Compensation for unused vacation
Upon resigning, an employee receives compensation for unused vacation. The calculation is made in almost the same way as in the case of an incompletely worked billing period, however, the formula for determining OT changes:
Example:
Vladislav receives a salary of 140,000, and he has already worked for 18 months in the company. During this time, he did not use 24 days of his vacation pay.
SDZ = 140,000 \(18*29.3) = 265.4 rubles
OT = 265.4 * 24 = 6370.87 rubles
Answer: 6370 rubles
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Vacation registration
There are two types of leave - main and additional, the calculation and documentation of which are identical.
The employer must create a vacation schedule for each year. No later than 2 weeks before the start of the vacation according to the schedule, the employee must be reminded in writing about the upcoming vacation. An employee may ask to reschedule a planned vacation. In this case, the transfer is carried out in agreement with management.
If an employee goes on vacation, an order is issued for him. The calculation of vacation pay is presented in the form of a calculation certificate containing a full calculation of the average daily earnings, the amount of vacation pay, withheld tax, and the amount due to be paid to the employee.
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Personal income tax on vacation pay
Vacation pay amounts are one part of an employee’s earnings, and therefore it is necessary to withhold personal income tax from them and transfer it to the budget within the prescribed period. The employee must be given vacation pay after this tax has been withheld. An online vacation pay calculator will help you do this correctly.
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Order for granting leave to an employee using Form T-6: example of filling out
When determining tax, the Tax Code obliges the following rates to be applied:
- For Russian citizens - 13%;
- For citizens of foreign countries - 30%.
The amount of tax that was withdrawn from vacation pay must be transferred to the budget on the last day of the month when this tax was calculated. If such a day falls on a weekend or holiday, the transfer date is automatically shifted to the next working day.
Certain amounts of vacation pay, as well as the tax withheld from them, must be reflected in the 6-NDFL report. If transfers were made for different employees on different days of the month, then for each case of transfer of vacation pay you will need to enter a separate line in the report. But if transfers were made to different employees on the same day, their amounts can be combined and shown in a single line.
The report is filled out as follows. Columns 100 and 110 record the date on which vacation pay was paid. Column 120 records the last day of the month in which the issuance was made - according to the law, it is on this day that the tax must be transferred to the budget. then the amount of vacation pay and the amount of tax withheld from it are entered in columns 130 and 140.
Instructions for using the vacation pay calculator in 2021
To quickly calculate your vacation pay, use our free calculator. The principle of its operation is based on three operations:
1. First, specify the rest period in the format “day.month.year”. Then select the type of vacation and specify the billing period.
Please note the auxiliary fields:
- The “There are exclusion periods” field is checked if there were exclusion periods in the billing period (illness, business trips, etc.).
- The field “If there was a salary increase in the billing period...” is marked if there was a salary increase throughout the company. This is done so that the calculator automatically indexes the employee’s earnings for the months preceding the increase.
2. Next, the employee’s income is indicated to calculate the average daily earnings, excluding the amounts of sick leave, etc. (see question mark in the calculator).
3. Receive a full calculation of vacation pay, highlighting the approximate amount of personal income tax and vacation pay to be issued.
Vacation rules in 2021
The paid rest period is calculated for all employees with whom the organization has entered into any type of contract. Regardless of the form of employment, be it seasonal, temporary or remote work, the norms for vacation pay are established by law. They are not provided only to individuals with civil law contracts (GPC). Rules for calculating and counting funds:
- The calculation period for vacation pay is 12 months of work. Only hired employees are entitled to leave 6 months after hiring.
- Vacation is provided according to the schedule approved before the new year. Employees should be familiarized with it.
- The billing period does not include sick leave, bonuses, business trips, or forced downtime.
- Vacation pay is indexed along with wages.
- Personal income tax is deducted from the amount of vacation pay, and the required insurance contribution is transferred to the budget.
- The employee must receive the funds 3 days before the break in work.
According to the Labor Code of the Russian Federation, the period of paid leave is twenty-eight days. It is extended as necessary if the employee has distinguished himself with particular success in the company. Each employee has the opportunity to divide vacation days into several parts, one of which must be 14 calendar days. The remaining parts can be divided at your discretion.
New calculation of vacation pay in 2021
Please note that the general procedure for calculating vacation pay in 2021 has not changed. As in last year, the calculations should be guided by Government Decree No. 922 dated December 24, 2007. In 2021, when calculating vacation pay, you must use the following: each day of rest is paid from the average daily earnings. When calculating vacation pay, the following formula is used:
Amount of vacation pay = average daily earnings x number of calendar days of vacation
The number of calendar days of vacation is indicated in the vacation order. Now you need to calculate the average daily earnings in 2018.
Vacation pay calculator
How to use the calculator?
- Enter the start and end dates of your vacation. Take the first one from the employee’s application, choose the second one yourself. Make sure that the number of vacation days matches the number on the application. Holidays are not counted as vacation days, so vacation according to the calendar may be longer.
- The billing period will be determined automatically. Add exception periods if there are any - these are vacations, sick leave, business trips or absences from work for other reasons. If during the billing period you massively increased the salaries of all employees of the organization or department, check the box. It is not needed if the salary of only one or several employees was increased.
- Go to the next step and indicate payments to the employee for the payroll period. This is a salary with allowances and bonuses, which are taken into account according to the rules from paragraph 15 of the Government Decree. Do not take into account vacation pay, sick leave, business trips and other payments based on average earnings, as well as financial assistance and compensation for food expenses.
- At the last step, look at the amount of vacation pay and personal income tax. An article about what documents to use to apply for a vacation
