Calculation of compensation for unused vacation from the minimum wage

The situation is really difficult. You need to understand how the calculation and surcharge are made. What happens if you break the law?

First of all, you should turn to the regulatory framework. The following points should be highlighted here.

1. The employer is obliged to keep the employee his average earnings during the vacation period. In no case should it be lower.
2. The calculation is carried out in accordance with Article 139 of the Labor Code of the Russian Federation and other documentation. Accountants are very familiar with this procedure.
3. In addition, at the end of 2021, the Government of the Russian Federation approved that the average monthly calculated earnings should not be lower than the minimum wage.

Thus, during furlough, you cannot pay an employee a salary that is below the minimum wage. But the legislation in this regard is imperfect. In particular, it does not indicate the mechanism by which an accountant should act if the average salary is lower than the minimum wage.

At the same time, experts have prepared a number of recommendations. They will help you calculate the correct amount of vacation pay.

How is additional payment made to the minimum wage level?

In order to find out whether an additional payment needs to be made, you must first determine the employee’s average daily earnings. Everything is identical with the calculation of vacation pay. After this, the resulting figure is compared with the average daily minimum wage. If the first indicator is less, then an additional payment is required.

In order to correctly calculate the average daily earnings, you should focus on Resolution No. 922. In accordance with it, all wages received during the year are taken. It is divided by 12 (the number of months). The resulting value must be divided by 29.3 (the average number of days per year). This formula is recommended by labor legislation. It takes into account that during the year the employee had 14 holiday days off. That is why the figure is taken at 29.3. The same figure is taken to calculate the average daily salary for a particular month.

If the calculations show a result that is below the minimum wage, then an additional payment must be made. In order to justify additional costs, you can issue an accounting certificate.

Features of calculating vacation pay

To calculate the amount of vacation payments, you first need to calculate the average amount of income received for one day of work. This is done by adding up all income received and further dividing it by the number of days in the billing period.

In the process of determining average daily earnings, the following types of income are taken into account:

• labor benefits;
• bonuses;
• commission payments;
• other income received directly from the employing organization;
• temporary disability benefits, etc.

When using the formula

With a fully worked out standard billing period - a calendar year, the benefit amount is calculated using a fairly simple formula:

Length of vacation in days * Average daily income of the employee

The average value of income received for one day is determined by the following formula:

Amount of income received during the billing period / (29.3 * 12)

If the billing period includes an incompletely worked month, the formula changes slightly:

Amount of income for the billing period / (29.3 * Number of fully worked months * Number of days worked in the last month)

As a result, the final formula for calculating the amount of the benefit due is as follows:

Amount of income for the billing period / (29.3 * Months worked + (29.3 / Number of calendar days in a month not fully worked * Number of holidays and weekends in it)

Is it possible via the Internet (online)

It is not at all necessary to manually calculate the amount of vacation remuneration due.

This can be done automatically without any problems using a special Internet calculator. The program is able to calculate the amount of benefits based on the data entered by the user.

The algorithm for its use is as follows:

• indicate the periods of vacation taken out and its type;
• enter the dates of the billing period;
• indicate the presence or absence of features, namely the excluded periods and the fact of an increase in wages during its validity;

Additional payment up to the minimum wage level

Initially, you need to refer to Art. 129 Labor Code of the Russian Federation. This states that an employee’s income includes not only the employee’s salary, but also his bonus payments. This amount includes compensation that is due for non-standard working conditions. This could be, for example, being in dangerous places or performing additional duties. The amount of income includes all kinds of allowances.

It is necessary to compare not only the salary portion, but also the entire amount of income to the employee’s account with the minimum wage. This is stated in a letter from the Ministry of Finance dated 2009. It also talks about the situation when an employee loses a bonus. What to do if in this case his income is below the minimum wage? The employer still needs to make additional payments if the employee goes on vacation.

At the same time, there are exceptions that apply to those who work in the Far North. Judicial practice and decisions of the Supreme Court indicate that income, when compared with the minimum wage, is carried out without taking into account bonuses for length of service and increasing coefficients. The employee’s experience in the Far North is not taken into account.

The same applies to employees of budgetary organizations. Their salary must be no less than the minimum wage. When assessing remuneration, overtime losses, financial assistance, sick leave, and birthday bonuses should not be taken into account. The additional payment for “state employees” is no different from what employees of budgetary organizations receive. The corresponding decision must be made by the chief manager of the institution.

Is it necessary to compare vacation pay and minimum wage?

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The procedure for additional payment up to the minimum wage in 2021 (nuances) The employee did not work for part of the month If the employee worked for an incomplete month in his main position, then the additional payment is calculated in proportion to the time worked for the main position. The total amount of the salary may be less than the minimum wage in the month that the employee worked not completely. Labor Code of the Russian Federation, then you still need to compare the employee’s average monthly earnings with the new federal minimum wage and, if it turns out to be less, pay the employee up to the new federal minimum wage. 18 Regulations. And one more question that arises for accountants who pay employees a salary not lower than the regional minimum wage: is it necessary to pay the average salary up to the regional minimum wage if it has increased? FROM AUTHORITATIVE SOURCES “The average monthly earnings of an employee who has worked the entire standard working time during the billing period and fulfilled labor standards (labor duties) cannot be less than the federal minimum wage at the time of its calculation.” 18 Regulations. If the regional minimum wage increases, this rule does not apply.”

How to calculate the amount of surcharge?

There is a special formula for this. It is necessary to take the minimum wage for the vacation period and divide it by the number of days in a month during which the employee will rest. The value is multiplied by the duration of the vacation. The amount of vacation pay is deducted from it.

Additional payment can be made to external part-time workers. It is carried out on a general basis. The concept of “external part-time work” means working in two companies at once. One job may be permanent. The second usually takes significantly less time.

It doesn't really matter. It is important here under what conditions the employee works. If he is employed at 0.5 rate, then he can count on at least 50% of the established minimum wage on vacation. The amount of vacation pay does not reach this level? Then the employer from the second place must make an additional payment so as not to violate the law.

Here you should take into account the number of days actually worked. For example, a subject worked 11 days a month (with a maximum of 22). Then the amount of the surcharge will be significantly less.

The amount of vacation pay is below the minimum wage: is it necessary to pay extra?

How to calculate, pay extra and what happens if you break the law.

First of all, it is worth turning to the regulatory framework. What the law says about this situation:

1. Article 114 of the Labor Code obliges the employer to retain the employee’s average earnings during the vacation period. That is, vacation pay should not be lower than the employee’s average salary.
2. Article 139 of the Labor Code of the Russian Federation and other documents speak about how to correctly calculate average earnings. Accountants are well aware of this procedure.
3. In December 2021, the Government of the Russian Federation published Resolution No. 922, which, among other things, states that the calculated average monthly earnings cannot be less than the minimum wage.

Thus, it turns out that when calculating the average monthly earnings, which is needed to determine the amount of vacation pay, the result should not be a value lower than the minimum wage.

Procedure for making additional payments

To begin with, you should refer to Art. 133 Labor Code of the Russian Federation. The article states that additional payment and settlement are the responsibility of the employer. He can use various methods. The following may be used as a surcharge:

• increase in bonus;
• material aid;
• other payments due to subordinates.

In addition, the manager can issue a special order. It should be noted that there is no special form for additional payment. This paper can be designed in free form. Only the requirements that are accepted in this particular organization are taken into account. The official disposal of the manager must include the following information:

• Title of the document;
• Name of the organization;
• Date of completion;
• information about the employee;
• amount of additional payment up to the minimum wage level;
• the reason for filling out the document;
• persons who are responsible for carrying out the order;
• organization stamp.

In addition, it may be necessary to make adjustments to the employment agreement with the employee. All adjustments must be documented. This is stated in Article 72 of the Labor Code. At the same time, issuing individual orders is not the most common practice. Often the options that were indicated earlier are selected.

Necessary information

The main list of rules for granting employees of an organization annual leave is prescribed in the provisions of articles of the nineteenth chapter of the Labor Code of the Russian Federation.

According to the information specified in it, the standard duration of annual paid leave is 28 calendar days, with the exception of federal holidays.

Photo: vacation pay calculation

However, the legislation does not limit the possibility of registering it earlier. This situation is possible if the employee and the employer came to a common opinion, and the latter allowed the employee to go on vacation.

Citizens working in certain areas of activity in addition to standard annual paid leave may qualify for additional days of rest.

According to the information set out in article No. 116 of the Labor Code of the Russian Federation, this right is granted to persons who work:

• according to an irregular work schedule;
• in hazardous or hazardous industries and enterprises;
• in areas of work, classified as “special”;
• in the Far North and in regions equal in status to them.

There are also other types:

Legal grounds

The issues discussed in the article are largely governed by the provisions of the articles of the Labor Code of the Russian Federation, presented in the table:

Changes are made repeatedly to the algorithm for granting leave and the algorithm for calculating the amount of the corresponding benefit.

In 2021, special attention should be paid to the following points:

• when determining the average earnings for one day, on the basis of which the amount of payments is calculated, it is additionally necessary to additionally take into account the indexation coefficient of labor remuneration, calculated using a specialized formula;
• withheld income tax funds are transferred and indicated in reporting on the new unified form 6-NDFL by the employer no later than the last day of the calendar month (if it falls on a weekend - no later than the next working day);
• Remuneration funds must be transferred to the employee leaving for vacation at least three days before the start date of the vacation.

Indicators for calculation

The procedure for calculating the amount of vacation benefits is carried out according to the following parameters:

• previous calendar year;
• the period during which the citizen worked in the organization (if it is less than eleven months);
• the last 12 months during which the citizen received wages (used if he has not actually worked recently - he was on sick leave, undergoing rehabilitation, etc.)

• aperiods during which the employee received labor remuneration in an average amount;
• temporary incapacity for work, including labor and employment regulations;
• downtime is not the fault of the employee;
• other situations in which a citizen was relieved of direct work responsibilities