How To Calculate Vacation Compensation

Table of contents:

How To Calculate Vacation Compensation
How To Calculate Vacation Compensation

Video: How To Calculate Vacation Compensation

Video: How To Calculate Vacation Compensation
Video: How to calculate Vacation Entitlement in Excel 2024, April
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Vacation is too little for some, and too much for others. What if you have no plans or funds for a vacation, or if you do not want to take a break from work at the moment, and the employer is increasingly reminding you of the vacation? You have the right to receive monetary compensation for it.

How to calculate vacation compensation
How to calculate vacation compensation

Instructions

Step 1

According to labor law, part of the annual paid leave exceeding 28 days can be replaced with monetary compensation. The employee receives this compensation upon dismissal. During the main vacation, employers do not pay compensation. But if an employee leaves and does not want to take a vacation for the current year, then in this case, compensation is paid to him, although this is the main paid vacation. Replacement of leave with compensation cannot be made for pregnant women, minors and workers employed in hazardous working conditions.

Step 2

During the vacation, the employee is paid in the amount of his average salary in this company, as well as all the bonuses, bonuses or other payments due. Thus, for the day of vacation, the employee cannot receive compensation less than for his working day, unless the employee has recently received a salary increase.

Step 3

Compensation for unused vacation is paid to all employees, regardless of the reason for their dismissal. This also applies to those who work under a fixed-term employment contract. If the employee has worked for at least 11 months, then the compensation must be calculated for all 28 calendar days. For each month worked, approximately 2, 33 days of vacation are supposed. If the employee's vacation is more than 28 days, then the number of his vacation days must be divided by 12 months and the resulting value should be rounded to the nearest integer in favor of the employee.

Step 4

Accordingly, the number of vacation days for which compensation is paid is multiplied by the average annual salary of the employee per day. For example:

the billing period is 12 months, for which the employee earned 240,000 rubles. Divide 240,000 by 12 months and 29.4 days (average month length). We get 680 rubles. This is the salary of a given employee per day. We multiply this number by the number of days for which the employee needs to be compensated and we get the amount of compensation.

Step 5

It is worth noting that the employer has the right (but not the obligation) to pay compensation to the employee for unused vacation exceeding 28 days, and not upon dismissal. It is up to him to decide whether he will use this right, or wait until the employee is fired, or simply "forcibly" send him to rest. In this case, compensation will be calculated in the same way as in the described case.

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