What does mean monthly earnings mean? How to calculate this indicator? Since the concept in accounting is widespread, it makes sense to understand how the calculation is carried out. It is very important to know what “average monthly earnings” is, how to calculate it for staff workers.
Laws, Rules and Terms
The Labor Code in force in our country does not consider the concept of “average monthly earnings”. How to calculate it, you can’t find out from the shopping mall. Instead, there are two other concepts: salary in itself, as well as average pay. The phenomenon we are considering is a particular subtype of these two terms, which, from the point of view of the TC, does not need to be defined. The 139th article is devoted to this question.
All these terms are widely used in practice, since they are relevant for various companies regardless of the area where the company is located.
What is what?
As they say, the enemy needs to know in person. So with accounting phenomena related to remuneration - to know what they are is worth it not only for those who are supposed to be oriented at work, what is the average monthly income, how to calculate it correctly, but also for the people for whom the calculations are made.
In accordance with the Labor Code, the average wage is calculated on the basis of information collected during the calendar year (12 full months). The results can be used in some cases as monthly average.
TC also recommends using the concept of “average daily wage”. She is needed in order to correctly pay the funds due to the employee leaving on vacation. If the employee had several days of vacation, but those were not used, the company must pay him compensation. This is calculated, also using the concept of average wages per day.
A number of features
Any accountant in the enterprise should know how to correctly calculate the average monthly income. At the same time, you need to navigate in this situation: not always the period for the calculation is exactly 12 months according to the calendar. It is allowed to do calculations based on other time intervals. This issue is regulated by a collective agreement, local regulations in force on the territory of the enterprise.
Understanding the average monthly earnings for 6 months how to calculate, the accountant must remember: the calculations are always carried out in favor of the employee, that is, in a way that represents the greatest benefit for him. It is not allowed to resort to such calculations that may worsen the position of the employee.
When do we count?
To know how to calculate the average monthly income for a year, you need to if the employee was not in his place, and the accounting department has to pay wages. There are certain situations in which, according to the Labor Code, an employee can expect to be paid even if he is absent, and the amount due to him is the average monthly wage.
The classic version: a business trip, a business trip, one way or another connected with the interests of the company. To know how to calculate the average monthly earnings for 3 months, you need to if the employee of the company participated in some collective project, because of which he could not be directly at the workplace specified in the labor contract. Local orders and instructions, having fixed the need for non-working activity of a particular person, also take into account that wages must be implemented according to the rules specified in article 39 of the Labor Code.And this is the situation when the calculation is based on the concept of average monthly earnings.
Traveling for work
If the boss sent an employee on a business trip, this does not mean that he does not need to pay wages. Bookkeepers will have to calculate how much you need to pay an employee, having previously figured out how to calculate three times the average monthly income. On how to pay wages to a seconded employee, the TC is described in article 167.
Similar conditions will be for all those who were sent to undergo a medical examination for work, because of which people could not attend the workplace. Conditions also apply to donors who have taken blood during the working period of time.
When else do you need averages?
The accountant needs to know how to calculate the average monthly salary upon dismissal, when paying compensation for study leaves that have not been used by employees. Special payment is due for the period while the employee was employed. All this is calculated based on the average monthly wage.
If an employee took part in a commission that resolved a labor dispute, during this period of time he will be entitled to money calculated on the basis of average payment per calendar month.
You need to navigate how to calculate the average monthly income for the employment center, how to calculate the values by which the calculation will be made for the time that employees could not work due to incorrect working conditions that the employer could not fix.
Features of magic with numbers
So, the simplest formula is as follows: we calculate the total amount of wages for 12 calendar months, then divide it by the number of months. This is the average person’s earnings per month.
The accounting period differs from 12 months in the case when local regulations have been put into effect at the enterprise that regulate this value and establish it shorter or longer. Please note: there should be no violation of applicable laws, which primarily involves the calculation in such a way that the employee is always the winner.
How to calculate the average monthly income for severance pay? It is necessary to calculate the indicated indicator for 12 calendar months, as well as to calculate various payments, excluding social payments. A number of periods will need to be excluded from the estimated time. For example, if it turns out that the calculation needs to be done over an interval from which a person has not received wages for some time, then a bias occurs: information is taken from an earlier interval.
It is important!
Remember: using the recommendations on how to calculate the average monthly income during the reduction, make sure that the indicator was not less than the minimum wage. According to the law, a restriction is established: the figures must be equal to the minimum wage or exceed this value for the region in which the calculations are made.
For example
Imagine that a certain citizen M. was employed at the enterprise K. She was entitled to leave for the period from 3 to 15 of the current month (suppose this is March). In 2015 and 2016, the salary of a citizen was the same. For example, take that it was equal to 18,000 rubles. Moreover, in the previous month before vacation, the woman took sick leave for 8 days. For this reason, in the previous month, her salary was less than 18,000.
How to calculate vacation pay?
First, it determines the period on the basis of which we conduct calculations. For this, we need a time period from the beginning of March last year to the end of February this year. Consider that in February there were 28 days, but because of the sick leave in February, she worked only 19. SDZ: (18,000 x 11 months + s / n for February) / (29.4 x 11 months + the number of working days in February ) This will give a value of 621.14 rubles. We multiply it by the number of days laid off by the employee (13), and we get 8,075 rubles.
How to calculate the average monthly income when reducing for example
Imagine a different situation: they plan to dismiss citizen N. from the workplace, since the company is to be liquidated. Suppose the dismissal is February 19 this year. The basic conditions are as follows: the salary was 12,000 rubles, but each quarter the employee was entitled to bonuses of 8,000 rubles. Also in December was a downtime due to a workplace accident lasting 6 days. For this reason, in December, wages amounted to only 9,700 rubles.
How much does an employee have to pay to fire him?
The billing period will begin in March last year and cover the period to the end of February this year. This happens for the reason that in February a citizen stayed at work for more than half a month, and according to rounding rules, it is believed that the month was completed completely.
The annual salary is calculated in December and amounts to 12,000 x 11 months. We add 8,000 to the obtained value and multiply it by 4. We get 173,700 rubles. Dividing this figure by 12, we get the average monthly salary of 14,475 rubles. It is her who will need to be paid to the woman, dismissing her. You will have to pay twice: first on February 19, and then again in a month. The second payment is due if the citizen does not find a permanent job by March 19.
We liquidate the enterprise: correct calculations
If the company is to be liquidated, it will be necessary to settle with the employee on the last day in the same place. The allowance, which in this case will have to be paid, amounts to a monthly salary. About what rights a person has in this situation, says the TC in the 178th article. In particular, it mentions that similar compensation, as paid directly upon dismissal, if the right to receive from the employee another month later.
To get your money, you need to write a free-form statement to the head of the enterprise, confirming that there has not yet been a new job, and provide your work book as a documentary demonstration of the veracity of the information. In some cases, the former authorities will have to pay even for the third month. This applies to the situation when a person registered at the labor exchange after being fired up to two weeks, but a new job did not happen.
Papers and numbers: special cases
To get all the money from the previous employer, the ex-employee will need to provide a certificate issued by a representative of the employment center. This should confirm that the person is still listed as unemployed.
The time period depends on a number of reasons. Special conditions apply to those who have been involved in seasonal work. Their base for severance pay will be an average wage of 2 weeks. But if the place of work was the Far North or a certain region, equating the North to its conditions, then when paying, you need to remember about social, material assistance and other additions to earnings. The first two types do not need to be taken into account, but all the rest must be summed up.
When and why should be considered
Average indicators are needed to calculate the vast majority of payments, benefits:
- vacation pay;
- business trips;
- study leave;
- transfers between posts when the new salary is less than the previous one;
- to calculate in a situation where a person can no longer work in the same position due to health indicators;
- related to medical research;
- work omissions due to donation;
- sick leave.
Who will help?
Current regulations pretty accurately and clearly regulate who and how much, in what situations and under what conditions you need to pay. The most complete information can be found in the Resolution adopted in 2007 under number 922, which was introduced into force by the government of the country.
This is called accordingly - "On average earnings."It follows from what and how to consider what is to be taken into account and what, on the contrary, is not taken into account (for example, the period when social benefits were paid to a person).
Calculation and additional payments
The correct calculation of the average wage involves accounting for a number of payments. They must be paid for the period of time that is used as the base for calculating average salary indicators. These include bonuses, remuneration, income related to the provision of services to the employer.
We will have to calculate the salary paid, not in money, but in a different form. If we are talking about municipal workers, state employees, then all payments related to the features of these posts also appear in the calculations. If the tariff rates, salary have allowances associated with certain special conditions, and they will have to be taken into account, as well as surcharges, as well as specialized coefficients. In a word, everything that is legally required for an employee is subject to accounting.
Premiums and average monthly earnings
When calculating the average indicators will have to take into account all the bonuses that were paid to the employee. In the case when the accrual occurs every month, it is necessary to calculate this employee’s profit, but one-time. If the premiums took place in the billing period, but were not regular monthly, then everything that a person received is taken into account in the calculation. This situation is also possible: bonuses were awarded to an employee, but this did not happen every month in a row. At the same time, the period when he was awarded bonuses is longer than the billing period. Here they take the monthly part of the premiums and make calculations, taking into account it.