How to calculate severance pay

For the calculation of average earnings is necessary to provide all types of payments from the employer regardless of the source of these payments. In the calculation of compensation does not come from payments of a social nature, such as financial assistance, sick leave, vacation days. Not taken into account the time spent on social payments.

For the calculation of the average wage it is necessary to take the last 12 months, even if compensation is made in the last few years.

You must determine the amount of average earnings for a day's work and multiply it by the number of days of unused vacation. If the amount or the number of days payment is to be rounded off, it does so in favor of the worker.

If this work before the dismissal worked less than 1 calendar year, the average earnings is calculated from the time actually worked. The number of days prescribed compensation is also calculated on the basis of time actually worked.

If you worked 11 months compensation is paid for all days of the statutory holiday for one year.

The average-earnings calculation is based on calendar days in the year. Weekends and holidays are not discarded from the calculation.

To determine the number of days to be reimbursed, you must take the total experience of the employee in the organization, calculate the number of days of leave provisions for the period and subtract the number of used leave days at the time of dismissal. In the work experience does not include time an employee is absent without a valid reason, time of dismissal, stipulated by article 76 of the labour code, time of leave to care for a child until they reach the statutory age, leave without pay, sick leave. Count work experience is from the moment of signing an employment contract.