Average salary calculating principle will change in Russia

A decree of the Russian government, which approved a new procedure for calculating the average salary, comes into force on September 1. As explained by the State Labor Inspectorate of Bashkortostan, according to the new rules, cash incentives have been added to the payments included in the calculation of average earnings, along with bonuses and other forms of remuneration.

The new document also clarifies the procedure for calculating severance pay upon termination of employment.

"The information that the amount of vacation pay will now change significantly is, to put it mildly, exaggerated. Bonuses and other incentive payments were previously taken into account when calculating vacation pay," commented Oksana Vanskova, Deputy Head of the State Labor Inspectorate of the Republic of Bashkortostan.

To calculate vacation pay and compensate for unused vacation days, the average salary will be calculated by dividing the amount for the billing period by 12 and by the average monthly number of calendar days, which is 29.3.

Author: Elina Akhmetova