Correct calculation of vacation pay upon subsequent dismissal of an employee - tips on calculation

Upon dismissal, an employee must receive earned wages and compensation for unused vacation. In this publication, we will look at how to calculate the number of vacation days upon dismissal to calculate compensation in 2021.

Also see:

• How to correctly calculate vacation pay in 2021
• Can dismissal be made while on vacation?

Leave compensation upon dismissal

When an employee quits, he must be paid monetary compensation for unused vacation days. The amount of this compensation is calculated using the formula:

To calculate the number of days of unused vacation upon dismissal, you must first determine:

• length of service giving the right to leave;
• the period for which compensation is due.

Let's look at this further with an example.

How to correctly calculate vacation pay upon dismissal

The main condition for making the final payment is the presence in the accounting department of an order from the enterprise’s HR department regarding the dismissal of an employee. Depending on the reason for termination of the employment relationship, the basis for creating an order is an application from the employee or an order from the manager.

The following information is required to be filled out in the order:

• on the number of days of the next unused vacation;
• about excessively used and subject to withholding vacation days;
• Articles of the Labor Code when issuing a dismissal order - 114,121,127,137 require strict compliance with the requirements contained therein.

Video about vacation compensation

Example of calculating length of service

Let us assume that Sergeev V.I. accepted into the company on May 18, 2017. The employee decided to resign on March 11, 2020. During the period of work, Sergeev was on vacation:

• 21 calendar days of vacation at your own expense - from June 15 to July 5, 2017;
• 28 calendar days of paid leave – from July 4 to July 31, 2018;
• 28 calendar days of paid leave – from August 7 to September 3, 2021.

During his work, Sergeev received disability payments during the following periods:

• from December 6 to December 13, 2018;
• from 12 to 31 March 2021.

Periods of regular paid vacation and sick leave are included in the length of service. Vacation days at your own expense exceeding 14 days are excluded from the length of service. Also, the first working year is increased by these 7 days (21 days – 14 days = 7 days).

So, Sergeev’s length of service will be 2 years 9 months 16 days :

• from May 18, 2021 to May 24, 2021 – 1 year;
• from May 25, 2021 to May 24, 2021 – 1 year;
• from May 25, 2021 to May 24, 2021 – 9 months 16 days.

Calculation in exceptional situations

If an employee resigns without being granted leave, then in the process of calculating payments for unused rest days, the following provisions of regulations will be taken into account:

• Compensation will not be accrued if the employee was recently hired and worked for less than two weeks.
• When an employee’s income is present only in the month of dismissal, the average salary will be determined by the ratio of the assigned amount to the average number of calendar days in the month (29.3) and the product by the total number of days worked.
• If there was no income in the month of dismissal, then the equal previous period is taken to calculate average earnings. If there was no such income in the previous period, then the salary or tariff rate is taken into account.
• When calculating the number of paid vacation days, the calendar year is considered, but if this year there was a vacation at your own expense, with a total duration of more than two weeks, the difference between this period and two weeks will have to reduce the time of paid vacation.
• It happens that an employee takes vacation days “in advance” and writes a letter of resignation without having had time to work the allotted year. In this case, excess paid vacation days will be withheld from the employee, unless absolute vacation pay is provided.

Thus, for each case, you can select an individual calculation provided for in Government Decree No. 922 or Rules No. 169.

Calculation of the period for which compensation is due

To calculate the period for vacation compensation, you must round the period to full months. Based on the data in our example, for Sergeev this period is 2 years 10 months.

When rounding, please note that days that are 15 days from a month or more are rounded to the nearest full month. A period of less than 15 days of the month is not taken into account .

We recommend calculating compensation for unused vacation in proportion to the time worked by the resigning employee. Despite the explanations of Rostrud given in letter dated March 4, 2013 No. 164-6-1. They say the full compensation rule only to workers who are in their first year of employment with a given employer.

Still, the employer has the right to improve the situation of employees. And this way you can avoid unnecessary claims from employees whose interests have been violated when going to court.

REFERENCE

There is positive judicial practice on this score: appeal rulings of the Irkutsk Regional Court dated November 12, 2014 in case No. 33-9318/2014, Murmansk Regional Court dated June 24, 2015 in case No. 33-1833-2015. Also, positive conclusions are presented in the Bulletin of Judicial Practice of the Moscow Court for the 4th quarter of 2015.

We calculate the days

So, we have calculated the length of service giving the right to leave and the period for which compensation must be paid. Now you need to determine the number of vacation days that the employee has accumulated during his entire time working in the company.

In general, according to Part 1 of Art. 115 of the Labor Code of the Russian Federation, the duration of vacation is 28 calendar days.

Taking into account the letter of Rostrud dated October 31, 2008 No. 5921-TZ, for one month fully worked in the company, the employee is entitled to vacation in the amount of 2.33 days (28 days / 12 months)

Based on the conditions of our example, Sergeev is entitled to vacation at the rate of 79.22 days ((2 years × 12 months + 10 months) × 2.33 days).

Next, you need to determine how many vacation days he has already used during his time working in this company.

Our Sergeev took 56 days (28 days + 28 days).

The number of days of unused vacation by an employee is determined by the formula (letter of the Ministry of Labor of Russia dated October 28, 2016 No. 14-1/B-1074):

Let's calculate how many days Sergeev is entitled to unused vacation:

79.22 days – 56 days = 23.22 days

Please note that rounding is not required by law. If you still decide to round up and pay compensation only for whole days, do it upward - in favor of the employee. This position is set out in letters of the Ministry of Labor of Russia dated November 2, 2018 No. 14-2/ОOG-8717, the Ministry of Health and Social Development of Russia dated December 7, 2005 No. 4334-17.

In our case, 23.22 days are rounded to 24 days (and not to 23, as we would round based on mathematical rules).

How to calculate vacation pay in 2021

Now that the billing period has been determined, you need to calculate the amount of payments for this period. The calculation includes all payments received by the employee: bonuses, additional payments, allowances, incentives, etc.

For the list of payments that are taken into account, see the Decree of the Government of the Russian Federation dated December 24. 2007 No. 922, or more precisely in paragraph 2 of the Regulations on the specifics of calculating average earnings approved by this resolution.

Here is a list of payments that need to be taken into account in average earnings when calculating vacation pay:

• wages accrued at tariff rates, official salaries, piece rates, as a percentage of revenue from product sales;
• wages paid in non-monetary form;
• Commission remuneration;
• fees for editorial staff of newspapers, magazines, and other media;
• the difference in official salaries of employees who transferred to a lower-paid position;
• bonuses and additional payments (for class, qualification category, length of service, combination of professions, etc.);
• compensation payments related to working hours and working conditions (determined by regional regulation, additional payments for work in hazardous and difficult working conditions, at night, in multi-shift work, on weekends and holidays and overtime);
• bonuses and rewards;
• other payments provided for by the remuneration system.

The following are not included in the calculation of average earnings: financial assistance, dividends, loans and other payments that are not related to wages.
That is, payments are not for work. EXAMPLE OF HOW TO CALCULATE AVERAGE EARNINGS TAKEN INTO ACCOUNT OF ALL PAYMENTS
An employee goes on vacation from July 5, 2021. The billing period is 12 months preceding the vacation. We take into account the periods: - July-December 2021 and - January-June 2021. Monthly The employee's salary is 20,000 rubles. In addition to the salary, the employee receives bonuses for fulfilling and exceeding the sales plan in accordance with the Regulations on bonuses, which are approved by the company. In March, the employee exceeded the sales plan and received a bonus in the amount of 8,000 rubles. In April, the employee again exceeded the sales plan, but this time to a lesser extent and received a bonus in the amount of 5,000 rubles. In May, the employee did not fulfill the plan, but received financial assistance in the amount of 4,000 rubles in connection with the birth of a child. Let's calculate the average employee's earnings: 1) We calculate wages for 12 months: 12 months. × 20,000 rub. = 240,000 rubles. 2) We include in the calculation two bonuses paid in March and April 2021. 240,000 rubles. + 8,000 rub. + 5,000 rub. = 253,000 rubles. 3) We do not include financial assistance in the calculation.

How to take into account quarterly, semi-annual and annual bonuses in average earnings

It is not uncommon for organizations to introduce quarterly or annual bonuses rather than monthly ones. Such bonuses must be taken into account in equal shares in average earnings. The total amount of the bonus must be divided by the number of months that are included in the bonus period. For example, if the bonus is for a quarter, the bonus amount must be divided by 3 months.

If at least one of the bonus months does not fall within the billing period, part of the bonus “falls out” and is not taken into account in average earnings.
EXAMPLE OF ACCOUNTING FOR A QUARTERLY BONUS IN THE CALCULATION OF AVERAGE EARNINGS
An employee goes on vacation from August 3, 2021. The calculation period is 12 months preceding the vacation. We take into account the periods: - August-December 2021 and - January-July 2021. Monthly salary of the employee is 22,000 rubles. In addition to the salary, the employee received a bonus for the 3rd quarter of 2021 in the amount of 18,000 rubles. The monthly premium amount will be: RUB 18,000. : 3 months = 6,000 rub. The 3rd quarter of the year includes: July, August, September. And in the calculation period we must take into account the period from August 2021 to December 2021. This means we take into account only part of the quarterly bonus, which relates to August and September 2021. Let's calculate the average employee's earnings: 1) We calculate wages for 12 months: 12 months. × 22,000 rub. = 264,000 rubles. 2) We include in the calculation the bonus for August and the bonus for September (these are parts of the quarterly bonus received by calculation) 264,000 rubles. + 6,000 rub. + 6,000 rub. = 276,000 rub.

How to account for non-labor bonuses

Bonuses such as gift payments for employee anniversaries, the organization’s birthday, voluntary work by an employee for a sick colleague, and so on, are one-time in nature and are not provided for by the remuneration system. It turns out that you cannot include one-time payments in the calculation of average earnings. But, on the other hand, if you want to take this kind of payments into account when calculating average earnings for vacation pay, simply include them in the Regulations on Bonuses or in the Collective Agreement.

Financial assistance is not included in the calculation of average earnings

Financial assistance is not an integral part of the wage system and cannot depend on the quality and quantity of the employee’s work. In the Labor Code of the Russian Federation there is no such concept as “material assistance” at all. This means that it cannot be taken into account when calculating average earnings.

How to take into account additional payments and allowances when calculating vacation pay

According to the Labor Code of the Russian Federation, work on holidays and weekends, overtime work must be paid.

Additional payment is charged:

• for overtime work;
• for night work;
• for combining professions or performing the duties of a temporarily absent employee.

In addition, employees often receive regional coefficients, which also need to be taken into account when calculating average earnings.

Thus, all additional payments are included in the calculation of average earnings for vacation pay.
EXAMPLE OF CALCULATION OF HOLIDAY PAY 2021 INCLUDING ADDITIONAL PAYMENTS
An employee goes on vacation from August 14, 2021 for 28 calendar days.
The employee's salary is 20,000 rubles. The billing period is 12 months preceding the vacation: August-December 2016 and January-July 2021. In February and March, the employee worked on holidays (February 23 and March 8). The amount of additional payment in accordance with the Regulations on the remuneration of the organization and the Labor Code of the Russian Federation was: 3,600 rubles. The amount of payments that must be taken into account when calculating the average salary for vacation: 20,000 rubles. × 12 months + 3,600 rub. = 243,600 rub. EXAMPLE OF CALCULATION OF HOLIDAY PAYMENT 2021 TAKEN INTO ACCOUNT OF DISTRICT COEFFICIENTS
The organization is located in the Khabarovsk Territory. The monthly salary of an employee is 15,000 rubles. Regional coefficient – ​​1.2. The employee goes on vacation from August 21, 2021. The billing period is 12 months preceding the vacation: August-December 2021 and January-July 2021. The amount of payments that must be taken into account when calculating the average salary for vacation pay is: 15,000 rubles. × 12 months × 1.2 = 216,000 rub.

Formula for calculating average earnings for vacation pay

The average daily earnings of an employee for vacation pay are determined by the formula:

Formula for calculating the amount of vacation pay

The amount of vacation pay is calculated as follows:
EXAMPLE OF CALCULATION OF HOLIDAY PAY FOR 2021
An employee goes on vacation from August 7, 2021 for 14 calendar days. The employee’s monthly salary is: 20,000 rubles. In April, the employee received a bonus in the amount of 5,000 rubles. The calculation period is 12 months preceding the vacation: August-December 2021 and January-July 2021. The average daily earnings is: (20,000 rubles × 12 months + 5,000 rubles. ): 12 months : 29.3 calendar days = 696.81 rubles. The amount of vacation pay will be: 696.81 rubles. × 14 days of vacation = 7,755.34 rubles.

How to calculate vacation pay if an employee works part-time

Nowadays, enterprises have a common practice of shortened working hours for many categories of workers. Instead of an 8-hour working day, a 6, 7, 4, etc. day can be established. hourly working days.

For employees who work with reduced working hours, vacation pay is calculated in the same way as for all employees.

You need to take the amount of payments for the 12 months preceding the vacation, add all allowances, bonuses and rewards, divide the total amount by 12 and divide by 29.3 rubles.

How to calculate vacation pay if an employee was sick, studied or was on vacation at his own expense

In practice, you rarely encounter textbook situations when you only need to know your salary to calculate vacation pay.

For vacation pay, the calculation period is 12 months preceding the vacation. At this time, the employee could take sick leave, go on study leave, or take a few days at his own expense.

In these cases, the time the employee was away from work must be subtracted from the billing period. And from the total amount of payments you need to subtract payments for the time of absence.

In Decree of the Government of the Russian Federation dated December 24, 2007 No. 922 “On the specifics of the procedure for calculating average wages” you can see the list of payments that are excluded. These are periods when an employee:

• was on annual main, additional or study leave;
• received sick leave benefits;
• received maternity benefits;
• was on vacation at his own expense;
• received additional paid days off or days off to care for disabled children and people with disabilities since childhood;
• did not work due to downtime due to the fault of the employer;
• received time off, etc.

How to determine the number of calendar days included in the calculation when an employee has not worked a full month

Periods of absence from work for various reasons are calculated using the formula:
EXAMPLE OF CALCULATION OF AVERAGE EARNINGS FOR FULL MONTH HOLIDAY
PERSONS An employee goes on vacation on October 23, 2021 for 14 calendar days. His salary is: 18,000 rubles. In the calculation period, you need to take into account: October– December 2021; January–September 2021. In December 2021, the employee was on sick leave, as a result he worked only 10 working days (that’s 14 calendar days). In December 2016 - 22 working days. The salary for December will be: 18,000 rubles. : 22 working hours days × 10 work. days = 8,181.82 rubles. During the period when the employee was sick, he received temporary disability benefits. The amount of benefits cannot be taken into account when calculating vacation pay. We calculate vacation pay: 1) Determine the number of calendar days of December that will be included in the billing period: 29.3 average date: 31 calendar days. days × 14 calendars days = 13, 24 calendars. days.2) Determine the average salary of an employee. (8,181.82 rubles + (18,000 rubles × 11 months)): (13.24 calendar days + (29.3 calendar days × 11 months) ) = 614.48 rubles. 3) Calculate the amount of vacation pay. 614.48 rubles. × 14 calendars days = 8,602.72 rub.

If you hire a new employee and after six or eight months he goes on vacation, a full pay period of 12 months is not possible. Then when calculating vacation pay you should take into account:

• payments accrued to the employee for actual work time;
• the actual months of his work at your company.

How to calculate vacation pay if wages have changed

If your organization’s salary changes within the billing period, after the billing period, but before the employee’s vacation, or during the vacation, the amount of vacation pay will have to be recalculated.

This rule is established by clause 16 of the Decree of the Government of the Russian Federation of December 24, 2007 No. 922 “On the peculiarities of the procedure for calculating the average salary.”

Formula for calculating the vacation pay adjustment factor for salary increases

EXAMPLE OF CALCULATING A SALARY INCREASE RATIO
An employee’s salary in September and October 2021 was 20,000 rubles. From November 2021, the employee’s salary was increased to 24,000 rubles. - by 4,000 rubles. The salary increase coefficient is equal to: 24,000 rubles. : 20,000 rub. = 1.2.

If the salary was increased within the billing period, then the employee’s salary that he had before the increase must be multiplied by the increase factor.
EXAMPLE OF CALCULATION OF HOLIDAY PAY WITH INCREASE RACTOR
From August 21, 2021, an employee will go on vacation for 28 calendar days. The employee’s salary was 20,000 rubles before February 1. From February 1 - 22,000 rubles. Let's calculate vacation pay for an employee: 1) Calculate the increase factor: 22,000 rubles. : 20,000 rub. = 1.1. 2) We determine the months that will be included in the billing period: - August-December 2021; - January-July 2021. 3) We calculate the amount of payments that we must take into account when paying for vacation: - we take into account the amount of wages before its increase for 6 months (August 2021 - February 2021) with a coefficient of 1.1 and - the amount of wages after an increase without a coefficient (February - July 2017) (RUB 20,000 × 6 months × 1.1) + (22 000 rub. × 6 months) = 264,000 rub. 4) We calculate the average daily earnings: 264,000 rub. : 29.3 calendar days days : 12 months = 750, 85 rubles. 5) We calculate the amount of vacation pay: 750, 85 rubles. × 28 days of vacation = 21,023.8 rubles.

It is also necessary to adjust the average earnings if the salary increase occurred outside the billing period, but before the moment when the employee went on vacation.
AN EXAMPLE OF ADJUSTMENT OF HOLIDAY PAY IF SALARY WAS INCREASED AFTER THE CALCULATION PERIOD BUT BEFORE THE START OF HOLIDAY
The employee goes on vacation from August 21, 2021 for 14 calendar days. Until August 1, his salary was 18,000 rubles. From August 1, the organization increased salaries, and the employee’s salary was: 21,600 rubles. Let’s calculate vacation pay: 1) Let’s calculate the increase factor: 21,600 rubles. : 18,000 rub. = 1.2.2) We determine the billing period. It will include: August-December 2021 and January-July 2021. The employee was not sick during the billing period, did not take vacation at his own expense - he worked the full period.3) Average earnings for calculating vacation pay will be: (RUB 18,000 × 12 months): 12 months. : 29.3 calendar days days = 614.33 rubles. 4) We calculate the amount of vacation pay for 14 calendar days: 614.33 rubles. × 14 calendars days = 8,600 rubles. 5) Let’s adjust the amount of vacation pay taking into account the coefficient. The salary was increased after the pay period, but before the start of the vacation. 8,600 rub. × 1.2 = 20,320 rub.

If wages increase during a vacation, which is very rare in practice, you only need to adjust that part of the average earnings that falls on the period from the moment the salary was increased until the end of the vacation.
AN EXAMPLE OF ADJUSTING HOLIDAY PAY IF SALARY IS INCREASED DURING A HOLIDAY
An employee goes on vacation from March 27, 2021 for 14 calendar days - until April 9. The employee's salary is 28,000 rubles. The billing period includes: March - December 2021 and January-February 2017. The employee was not sick in the last 12 months before the vacation. Worked throughout the entire billing period. Since April 3, the company has increased wages. The employee’s salary was 30,000 rubles. Let’s calculate the employee’s vacation pay: 1) We calculate the average earnings: (28,000 rubles × 12 months): 12 months. : 29.3 calendar days = 955.63 rub. 2) We calculate vacation pay according to the general rule: 955.63 rubles. × 14 calendars days = RUB 13,378.82 3) During the vacation, wages were increased. Therefore, we will calculate the salary increase coefficient: 30,000 rubles: 28,000 rubles. = 1.07 Remember that wages are increased during vacation. This means that we need to adjust the part that falls on the period from April 3 to April 9, 2021 (7 calendar days). 4) Let’s calculate the amount of vacation pay for 7 calendar days that falls in the period before the salary increase. Average earnings before going on vacation was: 955.63 rubles. The amount of vacation pay for 7 calendar days (before the salary increase) was: 955.63 rubles. × 7 calendar days = 6,689.41 rubles. 5) Let's calculate the amount of vacation pay for the period during which the salary increase occurs - 7 calendar days. To do this, multiply your earnings by the increase factor. RUB 955.63. × 7 calendar days × 1.07 = 7,157.67 rubles. 6) Calculate the total amount of vacation pay. To do this, you need to add two figures: the amount of vacation pay before and after the promotion. RUB 6,689.41 + RUB 7,157.67 = RUB 13,847.08 7) Let’s determine the amount that needs to be paid to the employee. Since vacation pay was paid to the employee before the vacation, we need to calculate the difference that is obtained when recalculating vacation pay for 7 calendar days after the salary increase with the coefficient. The difference must be paid to the employee. It is: 13,847.08 – 13,378.82 rubles. = 468.26 rub.

Calculation of vacation pay for summarized accounting of working hours

If the enterprise operates continuously, summarized working time recording is usually established for employees. Then, for each employee, the number of hours worked per month, quarter, half year and year is taken into account.

When accounting for working time in aggregate, vacation pay and compensation for unused vacation are calculated in accordance with Article 139 of the Labor Code of the Russian Federation.

First, determine the average hourly earnings, and then calculate the average earnings to calculate vacation pay.

Formula for calculating average hourly earnings with summarized accounting of working hours

Formula for calculating average earnings with summarized accounting of working hours

Formula for calculating compensation

Compensation for unused vacation by an employee is calculated by multiplying the average daily earnings (ADE) by the number of days of remaining vacation:

How to calculate the average daily earnings is described in detail in our article “How to correctly calculate vacation pay in 2021».

Calculation of compensation for an employee on a fixed-term employment contract

In general, the calculation of compensation for an employee on a fixed-term employment contract is no different from a regular one - an open-ended contract. If vacation on a fixed-term contract is set in calendar days, then compensation is calculated using the general formula (see above).

It’s another matter when leave for an employee who finishes work under a fixed-term employment contract should be granted in working days. Such leave is provided for seasonal work, as well as for those with whom a contract has been concluded for a period of up to 2 months. Such employees are entitled to 2 working days of vacation for each month of work (Articles 291 and 295 of the Labor Code of the Russian Federation).

To calculate compensation for unused vacation in working days, use the formula:

What payments are included in the calculation?

When calculating earnings for the billing period, you must include all payments that are listed in paragraph 2 of the Regulations approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922. These payments are:

• salaries accrued to employees;
• commission accrued to the employee;
• fees for editorial staff of newspapers, magazines, other media, and art organizations on the staff of the organization;
• bonuses and additional payments (for class, length of service, combination of professions, etc.);
• compensation payments related to working hours and working conditions (determined by regional regulation, additional payments for work in harmful (difficult) working conditions, at night, in multi-shift work, on weekends and holidays and overtime);
• bonuses and rewards.

Situation: when calculating compensation for unused vacation not related to dismissal, is it necessary to take into account the employee’s salary accrued to him in a separate division with a separate balance before transfer to the head office of the organization?

Yes need.

Branches, representative offices and separate divisions are not separate legal entities (clause 3 of article 55 of the Civil Code of the Russian Federation). Therefore, they cannot be independent employers (Article 20 of the Labor Code of the Russian Federation). Consequently, if an employee was transferred from a separate unit to the head office of the organization, then there was no change of employer. And when calculating compensation, you need to take into account the earnings accrued to the employee in the organization that pays compensation (clause 2 of the Regulations approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922).

Calculation of compensation for an employee upon dismissal after maternity leave

Compensation for unused vacation to an employee (or employee) upon dismissal after parental leave is calculated in the general manner, as indicated above.

However, keep the following points .

Maternity leave (maternity leave) is included in the length of service that gives the right to paid leave. But maternity leave is not included . It is included in the length of service only if the employee works part-time or at a remote workplace.

Thus, if the entire period for calculating the length of service for vacation, the employee was on maternity leave (and did not work remotely or part-time), and before that she was on maternity leave, then the average daily earnings must be taken for the 12 months that preceded the maternity leave. vacation.

Calculation of compensation for unused vacation

According to Article 122 of the Labor Code, the organization is obliged to provide employees with annual paid leave of 28 calendar days (1) and in some cases additional leave (2). If an employee does not use vacation and quits, he is paid monetary compensation (3).

(1) Art. 115 Labor Code of the Russian Federation

(2) Art. 174 Labor Code of the Russian Federation

(3) art. 127 Labor Code of the Russian Federation

To calculate it, you must first determine the number of vacation days to which the employee is entitled on the day of dismissal. To do this, you should calculate his length of service, which gives him the right to annual leave. It must be calculated from the date when the person started work, and not from the beginning of the calendar year. The length of service that gives the right to annual paid leave does not include: the time an employee is absent from work without a valid reason, the period of parental leave until the child reaches the legal age, as well as days of unpaid leave that exceed 14 calendar days. such vacation in the year (1).