How To Calculate Redundancy Benefits

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How To Calculate Redundancy Benefits
How To Calculate Redundancy Benefits

Video: How To Calculate Redundancy Benefits

Video: How To Calculate Redundancy Benefits
Video: Calculating Statutory Redundancy Pay 2024, December
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Upon dismissal of an employee due to staff redundancy, the company is obliged to pay him severance pay in the amount of the average monthly earnings. An employee will receive a second average monthly wage if he cannot find a job within a month after being fired.

How to calculate redundancy benefits
How to calculate redundancy benefits

It is necessary

  • - Labor Code of the Russian Federation (art. 139);
  • - Regulations on the specifics of the procedure for calculating average wages, approved. Decree of the Government of the Russian Federation of December 24, 2007 No. 922;
  • - certificate card of the dismissed employee.

Instructions

Step 1

To calculate severance pay, first determine the billing period. To do this, take the data on wages for the 12 months preceding the month on which the reduction date falls. If an employee leaves in September 2011, then the period from 2010-01-09 to 2011-31-08 inclusive must be taken as the calculated one.

Step 2

To calculate the average earnings, take into account: wages, salaries, allowances and surcharges, bonuses, etc.

Step 3

Do not include in the average earnings: benefits for temporary disability, material assistance, vacation pay, compensation for unused vacation, payment of the cost of food, travel, education, utilities, etc. Accordingly, there is no need to take into account the periods of these payments.

Step 4

Determine the employee's average daily earnings. Divide the actually accrued wages for 12 calendar months by the number of actually worked (workers) during this period of days.

Step 5

To calculate the average earnings of an employee, multiply the average daily earnings by the number of working days in the payable period. For example, if an employee leaves on September 16, 2011, then the period to be paid is from September 17, 2011 to 2011-16-10.

Step 6

An employee can receive the average earnings for the second month of employment after this period, if he submits a work book and a copy of it to the accounting department at the previous place of work, where there were no entries after the date of reduction.

Step 7

For the third month of employment, pay the employee the average earnings after this period, if, together with the work book and a copy of it, a certificate of registration with the employment service was handed over to them.

Step 8

To calculate the average earnings for the second and third months, multiply the average daily earnings by the number of working days of the month when the employee was not employed.

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