At HumanSoft SRL, they use the average daily salary to calculate the amount of Vacation allowance due to a leaver. This average daily salary is determined based on a three-month settlement period, and is obtained by multiplying the average salary per working day by a coefficient, which represents the ratio between the number of working days and the number of calendar days in the settlement period.
Example
Samira started working at HumanSoft on 1st Jan 2024 with a basic salary of 2000 Euros, and in August, she received a salary raise to 2600 Euros. Then she wanted to leave at the end of October, and her PTO is 8.26 days.
Calculations
First step is to calculate her total payments for the previous 3 months (don't include the month she is leaving in).
July: salary 2000 euros.
August: salary 4000 euros (2,600 salary + 1,400 euros bonus).
September: salary 2600 euros.
Total salary payment = 2000 +4000 +2600 = 8600 euros.
then calculate total working days for the previous 3 months
July: 15 days worked out of 23.
August: 21 days worked out of 21.
September: 19 days worked out of 21.
Total days the talent worked = 15 +21 +19 = 55 days
Total working days of the 3 months = 23 +21 +21 = 65 days (we need this only to calculate the coefficient)
Then, calculate coefficient for converting the average salary per working day to the average salary per calendar day.
Converting coefficient = Total days the talent worked / Total working days = 55 / 65 = 0.846 (1)
Calculate Average salary per working days = Total salary payment divided by Total days the talent worked
= 8600 euros / 55 days = 156.364 (2)
Calculate Average salary per Calendar day= Average salary per working days (1) Multiplied by the converting coefficient (2).
= 156.364 * 0.846 = 132.2839 Euros/calendar day.
Vacation allowance calculation: -
PTO balance Multiplied by Average salary per Calendar day.
= 8.26 * 132.2839 = 1092.665 Euros.
Partner: HumanSoft SRL
Country: Moldova
Case: 00204986
Submitter: Mennatullah Ashraf