In Ukraine, labor relations between an employee and an employer are regulated by the relevant legislation. Upon dismissal due to staff reduction, the employee is entitled to severance pay.

The Department of Inspection Activities of the North-Eastern Interregional Department of the State Labor Service told how to calculate the amount of severance pay upon dismissal of an employee due to a reduction in the number or staff of employees.

How is the amount of severance pay calculated when an employee is made redundant?.

The procedure for calculating the average wage, approved by the Cabinet of Ministers of February 8, 1995. No. 100 "

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So, in accordance with the third paragraph of clause 2 of the Procedure, the calculation of the severance pay is calculated on the basis of payments for the last two calendar months of work preceding the month in which the event occurs, with which the corresponding payment is associated.

The specialists noted that if in the last two calendar months preceding the month in which the event occurs, with which the corresponding payment is associated, the employee did not work, the average salary is calculated based on payments for the previous two months of work (paragraph 4 of clause 2 of the Order).

“The time during which the employee, in accordance with the law, did not work and his earnings were not saved or partially saved, is excluded from the billing period. The calculation period also excludes the time for which there is no data on the accrued wages of the employee as a result of hostilities during martial law,” the statement says..

If the employee does not have a billing period, the average wage is calculated in accordance with paragraphs three - five of paragraph 4 of the Procedure.

According to paragraphs 2-5 of clause 4 of the Order, when calculating the average salary for the last two months, in addition to the above payments, the following are also not taken into account:.

payments for the time during which the average salary of the employee is maintained (during the performance of state and public duties, annual and additional leave, business trips, forced absenteeism, etc.).

temporary disability assistance.

If the employee did not have a salary in the billing period, the calculations are made according to the tariff rate established for him in the employment contract, the official (monthly) salary.

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In the event that the amount of the official salary is less than the amount of the minimum wage provided for by law, the average wage is calculated from the established amount of the minimum wage at the time of calculation.

“In the case of the conclusion of an employment contract on a part-time basis, the calculation is carried out from the amount of the minimum wage, calculated in proportion to the terms of the concluded employment contract,” the report says..

The specialists explained that in accordance with the procedure, if the calculation of the average salary is calculated on the basis of the official salary or the minimum wage, then it is calculated by multiplying the official salary or the minimum wage by the number of months of the calculation period.

Earlier we wrote whether the period of mobilization for annual leave is counted in the employee's length of service..