Publication date: 18.04.2024
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Regarding the calculation of the average salary for the payment of compensation for unused vacations: clarification of the Ministry of Economy
The calculation of the average wage for employees is carried out in accordance with the norms of the Procedure for calculating the average wage, approved by Resolution No. 100 of the Cabinet of Ministers of Ukraine dated February 8, 1995 (hereinafter referred to as the Procedure).
The first paragraph of paragraph 2 of the Procedure establishes that the calculation of the average salary for payment of vacation time, provision of material (monetary) assistance or payment of compensation for unused vacations is made based on payments for the last 12 calendar months of work preceding the month of vacation, provision of material (monetary) ) benefits or payment of compensation for unused holidays.
Read also: Compensation for unused vacation in the absence of a calculation period
The changes introduced by the second paragraph of Clause 2 of the Procedure define a new procedure for calculating the average salary for the payment of compensation for unused vacations to which the employee acquired the right until December 31, 2023, in particular, it is calculated based on the payments accrued in 2023. The calculation of the average salary for the payment of compensation for unused vacations, to which the employee will acquire the right after December 31, 2023, remains unchanged.
When paying compensation for unused vacations in 2024, the employer must calculate two average wages
That is, when paying compensation for unused vacations in 2024, for its calculation, the employer must calculate two average wages.At the same time, the compensation itself should also be divided into two parts: compensation for vacations, the rights to which were acquired before 12/31/2023 and after this date.
The number of days of an employee's annual basic leave must be calculated based on the actual duration of such leave due to him, which is determined in proportion to the time worked by him.
There is no general legal act that would determine the procedure for calculating the number of days of annual leave.
Taking into account the fact that in accordance with the first part of Article 5 of the Law of Ukraine dated November 15, 1996 No. 504/96-BP "On Vacations", the duration of vacations is calculated in calendar days, regardless of modes and work schedules, therefore, when calculating the days of annual vacation in proportion to the time worked it is advisable to use the mechanism of calculation of payment for vacation days laid down in The procedure, i.e., the calculation of vacation days should be made to the calendar days of the working year in which the employee worked.
Read also: A mobilized employee can apply for compensation for unused vacation
Calculation of the duration of annual leave
The duration of annual leave in proportion to the time worked can be calculated as follows:
1. We determine the number of days of annual leave that fall on one calendar day without taking into account holidays and non-working days as a whole for the working year.
2. Then we multiply the obtained result by the number of calendar days without taking into account holidays and non-working days worked by the employee during the working period.
Taking into account the rounding rules, we determine the number of days of annual leave that are subject to compensation.
3. Similarly, we separately calculate the periods from the beginning of the employee's working year to December 31, 2023 and from January 1, 2024 to the day of dismissal.
Please note that according to the sixth part of Article 6 of the Law of Ukraine dated March 15, 2022 No. 2136-IX "On the Organization of Labor Relations under Martial Law", which entered into force on March 24, 2022, during the period of martial law, the norms, in particular, Articles 73 of the Labor Code of Ukraine, which establishes holidays and non-working days.Read also: Regarding the procedure for calculating the average salary for the payment of compensation for unused vacations
Retention of the total number of unused vacation days that are subject to payment
In some cases, to preserve the total number of days of unused vacation that are subject to payment, it is recommended to compare by mathematical majority/minority of the first, second, or third digit after the decimal point and adjust the number of days in the specified calculation periods by adding or subtracting days in each of them after the comparison numbers
That is, if during the calculation of unused vacation days in the period up to 12/31/2023 we receive, for example, the number of 7.41 calendar days and in the period after 12/31/2023 – 2.40 calendar days, and the total number is 10 calendar days, then we round the days in in the period up to 12/31/2023 up to 8 calendar days and in the period after 12/31/2023 - up to 2 calendar days.
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If, when counting unused vacation days until 12/31/2023, we get 7.50 calendar days and after 12/31/2023 – 2.51 calendar days, and the total amount is 10 days, then we round up the days in the period until 12/31/2023 to 7 calendar days and in the period after 12/31/2023 – up to 3 calendar days.
Regarding the indication in the order of dismissal of the employee of the periods for payment of compensation for unused vacations, we inform you that the Procedure does not contain regulations regarding the settlement of this issue specifically in the employer's order of dismissal of the employee.Enterprises, institutions, and organizations independently determine in the manuals on record keeping the rules and procedure for drawing up and processing internal normative and administrative documents in compliance with the requirements of the norms of current legislation.
It is worth noting that the letters of the ministries are not normative and legal acts and have an informational and advisory nature.
The procedure, i.e., the calculation of vacation days should be made to the calendar days of the working year in which the employee worked.
Calculation of the duration of annual leave
The duration of annual leave in proportion to the time worked can be calculated as follows:
1. We determine the number of days of annual leave that fall on one calendar day without taking into account holidays and non-working days as a whole for the working year.
2. Then we multiply the obtained result by the number of calendar days without taking into account holidays and non-working days worked by the employee during the working period.
Taking into account the rounding rules, we determine the number of days of annual leave that are subject to compensation.
3. Similarly, we separately calculate the periods from the beginning of the employee's working year to December 31, 2023 and from January 1, 2024 to the day of dismissal.
Please note that according to the sixth part of Article 6 of the Law of Ukraine dated March 15, 2022 No. 2136-IX "On the Organization of Labor Relations under Martial Law", which entered into force on March 24, 2022, during the period of martial law, the norms, in particular, Articles 73 of the Labor Code of Ukraine, which establishes holidays and non-working days.Read also: Regarding the procedure for calculating the average salary for the payment of compensation for unused vacations
Retention of the total number of unused vacation days that are subject to payment
In some cases, to preserve the total number of days of unused vacation that are subject to payment, it is recommended to compare by mathematical majority/minority of the first, second, or third digit after the decimal point and adjust the number of days in the specified calculation periods by adding or subtracting days in each of them after the comparison numbers
That is, if during the calculation of unused vacation days in the period up to 12/31/2023 we receive, for example, the number of 7.41 calendar days and in the period after 12/31/2023 – 2.40 calendar days, and the total number is 10 calendar days, then we round the days in in the period up to 12/31/2023 up to 8 calendar days and in the period after 12/31/2023 - up to 2 calendar days.
If, when counting unused vacation days until 12/31/2023, we get 7.50 calendar days and after 12/31/2023 – 2.51 calendar days, and the total amount is 10 days, then we round up the days in the period until 12/31/2023 to 7 calendar days and in the period after 12/31/2023 – up to 3 calendar days.
Regarding the indication in the order of dismissal of the employee of the periods for payment of compensation for unused vacations, we inform you that the Procedure does not contain regulations regarding the settlement of this issue specifically in the employer's order of dismissal of the employee.Enterprises, institutions, and organizations independently determine in the manuals on record keeping the rules and procedure for drawing up and processing internal normative and administrative documents in compliance with the requirements of the norms of current legislation.
It is worth noting that the letters of the ministries are not normative and legal acts and have an informational and advisory nature.
