How To Calculate The Average Wage

Table of contents:

How To Calculate The Average Wage
How To Calculate The Average Wage

Video: How To Calculate The Average Wage

Video: How To Calculate The Average Wage
Video: How to calculate mean - average wage exam question 2024, December
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The accounting department of each company is often faced with the fact that employees need to calculate the average salary. Its size is used to calculate payments for unused vacation, as well as to determine the amount of unemployment benefits if an employee is registered at an employment center.

How to calculate the average wage
How to calculate the average wage

It is necessary

accounting data on employees of the organization, calculator, production calendar, labor legislation

Instructions

Step 1

Determine the period for calculating the average wage. It depends on the actual time worked by a given employee. Usually the accounting department accountant takes twelve months into account. If the employee worked at the enterprise, for example, for six months, then half a year is this period.

Step 2

Calculate the amount of salary for the estimated period of the employee's work. It consists of all payments received by this employee for the performance of his job duties. These include premiums, allowances, confirmed by payroll. But material assistance and gift money are not included in this amount.

Step 3

Determine the number of days actually worked for the billing period. These include only working days, holidays and weekends are not included. Calculate the days in each month and find the grand total by adding the number over twelve months.

Step 4

Calculate the average daily earnings of this specialist. It is determined by dividing the amount of wages received for the billing period by the amount of actually worked days of the employee for twelve months.

Step 5

Decide on the number of working days in the previous month. The size of the average daily salary of an employee is used to calculate the average monthly salary. Multiply the specialist's average daily earnings by the number of days in a given month. The result obtained will be the average earnings of an employee per month.

Step 6

When you need to determine the average monthly wage for all employees in your organization, calculate the payroll for all employees. It consists of the amount of the average monthly salary of each specialist. Thus, you need to find the average earnings separately for each employee using the method described above and add up the results. Divide the wage fund by the number of employees and calculate the average wage of employees for your company.

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