How to calculate compensation in case of dismissal of an employee

Every person who works under an employment contract, is entitled to annual paid holiday with preservation of a post and wages (article 114 of Chapter 19 of the Labour code of the Russian Federation from 30.12.2001 №197-FZ). With the dismissal of the employee, the organization must pay compensation for unused leave. (article 127 of Chapter 19 of the Labour code of the Russian Federation from 30.12.2001 №197-FZ).

How to calculate compensation in case of dismissal of an employee
How to calculate employee severance
How to calculate compensation for vacation upon dismissal
How to calculate compensation for unused vacation at dismissal

Instruction

To calculate this compensation, you first need to calculate the average daily earnings. To do this, add up the wages for the billing period. Then multiply the number of months worked by 29.4 (the average number of calendar days in the month). Total wages divide by the resulting number.

Next you need to calculate the number of days of the statutory holiday. For this purpose the provisions of 28 calendar vacation days divide by 12 months and multiply by the number of months in the billing period.

Last is the calculation of the compensation. Take the number of days of the statutory holiday and multiply by the average daily earnings. The resulting figure needs to be paid to the employee.

Note

The number of calendar days annual leave can be more as in some areas there are additional holiday, for example, for residents of the far North and similar areas.

Useful advice

The employee may apply for leave with the subsequent dismissal. In this case compensation is not paid.

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