Calculation of the average wage and its pecularities

Salary is a reward for work. Its size depends on the qualifications of the employee, the complexity of the work, its conditions, quantity and quality. The salary includes compensation payments, surcharges, incentive payments (bonuses) and co-payments.

The calculation of the average wage is carried out in the same manner as provided for in the Labor Code.

Calculation of the average monthly salary takes into account all types of payments, which are determined by a single wage system implemented by the employer, regardless of what sources were used for these payments.

In different modes of work, the calculation of the average wage is determined based on the wage actually paid to the employee and his actual output. The calculation of the average wage is calculated for the last 12 calendar months before the period in which the average salary remained for the employee. It should be borne in mind that the calendar month is the period from the first to the thirtieth (thirty-first) number of the respective months inclusive, including in February from the first to 28 (29) number.

Payroll calculation, formula:

3 = P / R,

Where P is the cost of labor;

R is the average number of employees.

Calculation of the average daily earnings for payment of leave and payment of compensation for unused vacation is made in the same way as with an average wage for the last 12 calendar months, by dividing the amount of accrued wages by 12, and then dividing by 29.4 (the average monthly amount of calendar days) .

In the employment contract, another calculation of the average wage is possible. Under him, the period is provided for by local regulations, but only if this does not worsen the condition of employees in any way.

The types of payments that apply to the relevant employers include:

• Wages accrued at the tariff rates or salaries for the worked-out period of time;

• Salaries, charged for the work performed as a percentage of revenue;

• Wages, charged for work performed on a piece-rate basis;

• Salary received not in cash;

• Monetary remuneration;

• and etc.

When calculating the salary, social payments or other payments such as material assistance or payment of public services, training, travel, rest, meals and other payments are never taken into account.

In the case when the employee did not receive actually accrued wages or did not actually have worked days, then such earnings are determined from the sums of wages for previous periods equal to the calculated ones.

In various cases, the average monthly earnings of employees who have fulfilled the full rate of all working hours and have fulfilled the labor standard can not be less than the minimum wage established by the Federal Law.

Calculations on the calculation of wages - this is labor-intensive work, for the solution of which you will need attentiveness and certain skills in accounting.