The average monthly income from labor is not the same as the average wage. In contrast to the average salary, which is used for statistical surveys, the average salary is used for practical purposes. How does an employer know the average monthly income of an employee?
How is calculated
The method for detecting average earnings for practical purposes is established by the Labor Code. Among other things, this indicator is used to calculate severance pay, leave, compensation for wages during disability, and so on.
Those who wondered how to calculate the average monthly income should use the simplest formula. You just need to take the income for the year and divide this amount by 12. When determining this amount in order to compensate for losses in accidents and illnesses, the period of the previous calendar year is taken. The formula for the average monthly income here remains exactly the same. The exception to the period are cases when labor relations arose during the previous calendar quarter. The necessary period is the period from the date of employment to the end of this quarter. According to Russian laws, the average monthly income cannot be lower than the minimum wage. For this calculation, the average employee’s hourly earnings are multiplied by the employee’s weekly working time and coefficient of 4.348. This indicator expresses the average number of weeks for one month in a normal year.
If it is necessary to calculate the average monthly net income, the following is deducted from the average monthly gross earnings:
- insurance contributions for retirement savings;
- social insurance premiums;
- universal health insurance premiums;
rules
The average employee earnings cannot be lower than the minimum wage. If there was an average earnings below the level, they always increase it by the amount corresponding to the minimum wage.
To calculate the average monthly income for the last 6 months, the profit for the previous calendar quarter is crucial.
The provisions of the Labor Code are binding. In order to apply the average monthly income in labor relations, it is necessary to use this document. Two key factors are important for determining an indicator:
- appropriate period;
- gross salary before the specified period.
For the most part, the period is the previous calendar quarter. But this does not mean that the selected interval cannot be another period of time. Thus, the basis for calculating average earnings can be a year, six months, and so on. When wondering how to calculate the average salary, it is first of all necessary to understand how long this indicator needs to be found.
Allowances and rewards
Average earnings are used in calculating the supplement:
- for working overtime;
- for work on a holiday;
- for night work;
- for work on Saturday and Sunday;
- for direct pedagogical activity above the established range.
Severance pay and compensation
Average earnings are used for:
- determining the amount of severance benefits due to organizational changes;
- calculation of severance pay upon termination of employment due to health problems resulting from an industrial accident or occupational disease.
It is also determined by the size of average earnings:
- compensation for damage caused by the employee;
- compensation for damage for which the employer, staff are responsible.
Special cases in determining average earnings
Definitely, a way has already been established here how to calculate the average salary. But in practice, a person, in turn, is faced with peculiarities and obstacles in calculating average earnings.
When working during the previous calendar quarter, the main period is not the calendar quarter, but it is considered the time from the occurrence of labor relations to the end of the calendar quarter.
Likely earnings are used if the employee worked for at least 21 days in the main period. Likely earnings are calculated from gross wages, which are calculated from the beginning of the main period, or even from official wages, which the employee would probably receive if he worked all this time. Sometimes you need to establish average earnings during a long absence of work. In this case, you need to take the last known average employee salary and its average growth in the enterprise.
On holiday
Often, this indicator is necessary for calculating payments on vacation. Vacation pay is calculated in accordance with the following rules. A salary is paid that is determined on the basis of a monthly constant payment (for example, base salary, allowances in a fixed amount). It also takes into account wages and vacation time in the amount due to the employee in the month of vacation use. The elements of remuneration for the monthly period are included, with the exception of the salary components specified in the monthly constant payment rate.
It is worth noting that wages on vacation are paid to the employee, based on payment within 3 calendar months preceding the month the vacation began. In cases of significant fluctuations in the amount of the salary components mentioned above, these components can be taken into account when calculating vacation pay in the total average size for a period not exceeding 12 calendar months preceding the month of the start of the vacation.
In turn, vacation pay is calculated as follows. The amount is divided by the number of hours during which the employee performed the work. Then, the remuneration for one hour of work is multiplied by the number of hours that the employee spent on vacation time as part of normal working hours - in accordance with the working hours schedule applicable to him - if at that time he did not use the vacation opportunities.
In the same way, the basis for the amount of wages for the time an employee is relieved of duties in connection with dismissal under an employment contract should be determined and its value calculated. After the termination of the employment relationship, it should be indicated that in the event of the conclusion of such an agreement, the employee is entitled to compensation, the amount of which cannot be lower than 25 percent.
The basis for calculating the amount of losses is thus laid the remuneration that the employee actually received, and not the contractual salary. If a person worked less than the period specified in the contract, then the average monthly salary received by him multiplied by the number of months of the contract is taken into account.
Documents for the grant
In accordance with the law of the Russian Federation, some categories of citizens have the right to receive special subsidies when paying for utilities. In order to receive them, you must provide the following documents for the subsidy.
This is a direct application for its receipt, passport details, a document confirming Russian citizenship, certificates of family ties with the family living with this person. They will need their passports, birth certificates - in the case of minors. It is necessary to provide a certificate of family composition. Here you should fill out an income statement form. We also need extracts from the personal account of housing and communal services, documentation confirming the right to social support.
Documents confirming income
There is a list of documentation that can fulfill this goal. Firstly, this is a certificate from the tax authority about income subject to taxation. Secondly, these are statements by family members that are not determined on the basis of the provisions on income tax on certain income received by individuals for the calendar year preceding this period. Thirdly, these are certificates of family members containing information on the amount of social insurance contributions for the calendar year preceding this period (certificate of social insurance or certificate from the employer).
Another document confirming income is a certificate from the competent authority of the municipality, a payment order. This is also a statement on the size of the plot, expressed in hectares. Family income information is also learned from the lease if a final decision is made in whole or in part of the family owned farm on lease on the basis of the contract.
The next document is a copy of the court decision on alimony to be enforced or a copy of the settlement agreement approved by the court concluded with the mediator, according to which he must pay alimony. Such a document is a certificate of money transfer.
This list also includes a document indicating the date of loss of income and the monthly amount of lost income. A certificate of income received from the sale of an apartment is suitable.
Evidence may also be a copy of the final decision of the family court on adoption. The court’s decision to appoint a child’s guardian is also used. Thus, in the form of "Income Inquiries", thus, these documents can be entered.
Examples
On June 1, 2008, the employer decided to reduce the salary for his subordinate from 4000 rubles. up to 3000 rub. On June 30, 2008, he decided to end his employment relationship with him. At the time of termination of the employment contract, the employee had the right to a salary of 3,000 rubles, which is the basis for the calculation, however, the amount of the average wage calculated as equivalent for vacation is required.
This mechanism becomes a little more complicated if the employee received a variable salary (for example, he had an hourly rate) or in addition to the main payment he was accrued variable components, for example, bonuses. Parts of wages received by him during the 3 months preceding the month of termination of the employment contract are recorded on average for the corresponding period.
In the second case, the employee received remuneration in the amount of 170 rubles / hour. The employer decided to end his employment relationship with him on June 30, 2008. To determine his average monthly salary, you will have to take into account the salary of a subordinate from May, April and March 2008, which is:
- May 2008: 170 rubles x 168 hours = 28560 rubles;
- April 2008: 170 rubles x 176 hours = 29920 rubles;
- March 2008: 170 rubles x 160 hours = 27,200 rubles.
Then they need to be summed up (28560 + 29920 + 27200 = 85680) and calculate the average wage of these three months (85680 rubles: 3 = 28560 rubles). Thus, the average monthly wage is recorded as equivalent to vacation pay. She amounted in this case 28560 rubles. If an employee received a fixed salary on a monthly basis, as well as a variable remuneration (for example, a fixed base salary plus a monthly variable bonus), you should, in turn, take into account the permanent element that was paid to the employee during the 3 months preceding the month of termination of the employment contract. In the following case, the employee owned a permanent salary of 21,000 rubles per month. In addition, he also received monthly variable bonuses. The contract was terminated on June 30, 2008. Then the employer must take into account the size of the bonus for the last three months preceding the month of dismissal. He composed:
- May 2008 - 4800 rubles;
- April 2008 - 5200 rubles;
- March 2008 - 4,400 rubles.
In order to calculate the average employee wage, the above amounts should be calculated as follows:
- 4800 rub + 5200 rub + 4400 rub = 14400 rub .;
- calculate the average salary for the period of these 3 months: 14400 rubles. : 3 = 4800 rub.;
- summarize the fixed and variable components of wages: 21,000 rubles. + 4800 rub. = 25800 rub.
Thus, the average monthly salary will be here 25800 rubles.
Average earnings in the country
The Main Statistical Office publishes data on average wages per month. It is also regularly announced how much it amounted to for a given year. The latter testimony is very important, given that it is used to calculate, for example, deductions collected by bailiffs. Simply put, the national average is the result of dividing the amount of earnings by the number of employees.
What are not taken into account in the average salary
It should be noted, however, that only companies with at least 10 employees are taken into account in these calculations. The statistics do not include small enterprises. In addition, only the income of those employed with an official employment contract is taken into account. The average wages of people working without his conclusion are not taken into account. Wages in envelopes are not taken into account. Because of this, many people believe that official statistics reflect the real current picture in the country.
Official data
According to statistics, the average monthly Russian salary as of 2018 was 35,000 rubles, if this amount is rounded up. It is presented without tax deduction. After him, the average monthly salary of a Russian began to equal 30,000 rubles. It is important to note that in view of the above factors, these statistics are considered not entirely accurate. In reality, the situation may be completely different. There is a large segment of the population that continues to work without an employment contract, working, for example, at an individual entrepreneur. In 2018, according to statistics, there was a tendency to an increase in the average monthly salary of the average Russian by several thousand rubles.