Publication date: 04.06.2024
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Calculation of earnings for assignment of insurance benefits under social insurance
1. Introduction
Social insurance is an important component of social protection of the population, which provides financial support in case of temporary incapacity for work, pregnancy and childbirth, unemployment, accidents at work and occupational diseases. One of the key aspects of the social insurance system is the correct calculation of earnings for the assignment of insurance benefits. In this article, we will consider the basic principles and methods of calculating earnings for assigning insurance benefits under social insurance.
2. Legislative regulation
2.1. Basic normative acts
The procedure for calculating earnings for assigning insurance benefits is governed by the following regulations:
Law of Ukraine "On mandatory state social insurance".
Resolution of the Cabinet of Ministers of Ukraine "On approval of the Procedure for calculating the average salary (income) for the calculation of payments under the mandatory state social insurance".
2.2. Substantive provisions
The legislation determines the procedure for calculating the average salary, which is used to calculate insurance benefits, as well as the periods that are taken into account when calculating earnings.
3. Period of earnings calculation
3.1. Last 12 months
To calculate the average salary, the period of the last 12 calendar months preceding the month of occurrence of the insured event is usually taken. This allows you to take into account all the employee's income for the year and ensure a fair calculation of insurance benefits.
3.2.Part-time working period
If the employee worked for less than 12 months, the average salary is calculated for the actual months worked.
4. Components of earnings
4.1. Basic salary
The basic salary includes all payments accrued to the employee for the work performed in accordance with the employment contract.
4.2. Additional payments
Additional payments include bonuses, allowances, extra payments for work at night, weekends and holidays, as well as other incentives and compensations of a regular nature.
4.3. One-off payments
One-time payments, such as one-time bonuses or financial assistance, are usually not taken into account when calculating the average wage for insurance benefits.
5. The method of calculating the average salary
5.1. General algorithm
The method of calculating the average salary involves the following steps:
Determination of the total amount of earnings for the selected period.
Determination of the number of calendar days in the calculation period.
Calculation of the average daily wage by dividing the total amount of earnings by the number of calendar days.
5.2. Calculation example
Let's assume that the employee earned 120,000 hryvnias in the last 12 months. The number of calendar days in this period is 365. The average daily wage is calculated as:
Average daily salary=120,000365=328.77 UAH Average daily salary=365120,000=328.77 hryvnias
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