Get Your Severance Pay Calculated Right!
Revised norms for determining typical income shared among Russians
Figuring out how much you're owed when being fired isn't always simple, but the new rules coming into effect from September 1 can make things a bit clearer, at least on the side of severance pay.
Yulia Sanina, the Director of Human Resources and Organizational Development at Rabota.ru, spills the beans on the new calculation methods. Here's what you need to know:
In the past, your daily salary was multiplied by the actual number of working days according to the production calendar for the paid period. Post-September 1, the game has changed. Instead, your daily salary is now multiplied by the average number of working days in a month over the year.
Before we dive into the math, let's clarify the new rules:
- New Calculation Method: Say goodbye to specific workday calculation and hello to average daily earnings multiplied by the average number of working days in a month over a year.
Now, let's crack the code on how to calculate your severance pay.
Step-by-Step Severance Pay Calculation
- Determine Average Monthly Earnings: For a typical 5-day workweek, 20-22 working days per month are a safe bet. However, under the new rule, use the average number of working days per month over a year. Let's assume around 21 working days a month.
- Calculate Average Daily Earnings: Your monthly salary is crucial for this step. Divide it by your average number of working days to find your daily earnings. For instance, if your monthly salary is 100,000 rubles, your daily earnings would be approximately 4,761 rubles (rounded off).
- Severance Pay Calculation: Generally, severance pay is based on one month's salary or more, depending on the reason for termination. For staff reduction, it's usually equivalent to one month's pay. Using our example, that would be a hefty 100,000 rubles.
Although the new rules favor using the average annual working days, the specific method for applying them to a 5/2 work schedule remains a mystery in the provided info. For a simplified approach, your severance pay remains at 100,000 rubles.
Important Considerations
- Work Schedule: Rest assured, your work schedule shouldn't impact your calculation beyond the average number of working days used.
- Legal Compliance: Navigating the complexities of Russian labor laws can be tough. Be sure to consult legal or HR professionals to keep yourself covered when negotiating your severance pay and understanding your employment contract terms.
Want more insights on your region's earnings? Check out Krasnodar Krai's population income ranking.
Stay tuned for more!
In accordance with the new calculation methods, the daily salary is now multiplied by the average number of working days in a month over a year to determine severance pay.
Following the step-by-step calculation, the average monthly earnings, average daily earnings, and severance pay can be determined using the daily salary, work schedule, and employment contract terms.
