What should I do about the calculation of the employee's pre-employment severance payment?In this case, the employee needs to calculate carefully, as this will involve the employee's severance payment. So, how to calculate this average salary for the first 12 months?
First of all, we need to clarify what the average salary for the previous 12 months is. The average salary in the first 12 months refers to the average monthly salary of the employee in the 12 months prior to the termination of the labor contract, excluding overtime pay, non-routine bonuses, benefits, etc. This average wage is an important basis for calculating severance payments.
So, how to calculate the average salary in the first 12 months?Here are two ways to calculate it:
Method 1: Simple averaging.
The simple average method refers to the average monthly salary in the 12 months prior to the termination of the employment contract as the basis for calculating the severance payment. This method is relatively simple, but it has certain limitations. Because this method does not take into account the trend of wage growth and the difference in wages from month to month, it may lead to inaccurate calculations.
Method 2: Weighted average method.
The weighted average method refers to the weighted average of wages for the 12 months prior to the termination of the employment contract by month to calculate the severance payment more accurately. Specifically, multiply each month's salary by the weight of the month (usually 1 12), then sum and divide by the total weight (12) to get the average salary for the previous 12 months. This method takes into account wage differentials and trends from month to month and is a more accurate reflection of workers' real income levels.
It is important to note that when calculating the average salary for the previous 12 months, we need to take into account the impact of various factors, such as overtime pay, non-routine bonuses, benefits, etc. These factors may lead to changes in the average monthly wage level, which may affect the calculation of severance payments. Therefore, when calculating the average salary for the previous 12 months, we need to consider and adjust it comprehensively according to the actual situation.
In addition to the above two calculation methods, other methods can be used to calculate the average salary for the previous 12 months, such as using the highest and lowest method of exclusion. Different methods may yield different results, so the selection and use of severance payments on a case-by-case basis is required. At the same time, you need to pay attention to keep your own salary slips and bank statements and other evidence materials so that you can check and prove them when needed.