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Should a coefficient be applied when calculating vacation pay for an employee taking leave in January?
Should a coefficient be applied when calculating vacation pay for an employee taking leave in January?
By the relevant decree of the head of state, starting from January 1, 2025, the minimum wage has been increased from 345 manats to 400 manats. The question is, should the coefficient be applied when calculating vacation pay for an employee who goes on vacation in January?
According to the "Coefficient for calculating average wages during vacation" rule approved by the Cabinet of Ministers' decision No. 137 on August 25, 1999, the purpose of applying the coefficient for vacation calculation is to adjust the employee's vacation wage to their actual salary. Therefore, if an employee goes on vacation in January, when their salary has increased, the vacation pay must necessarily be calculated with the application of the coefficient. If the coefficient is not applied, the employee's income for January will be lower, which contradicts the philosophy of applying the coefficient.
Example: An employee took 14 days of vacation starting from January 10, 2025. Due to a mass increase, the employee's salary was raised in January. When calculating the vacation pay, the employee's income for the last 12 months (January to December 2024) should be calculated using the coefficient.
By the relevant decree of the head of state, starting from January 1, 2025, the minimum wage has been increased from 345 manats to 400 manats. The question is, should the coefficient be applied when calculating vacation pay for an employee who goes on vacation in January?
According to the "Coefficient for calculating average wages during vacation" rule approved by the Cabinet of Ministers' decision No. 137 on August 25, 1999, the purpose of applying the coefficient for vacation calculation is to adjust the employee's vacation wage to their actual salary. Therefore, if an employee goes on vacation in January, when their salary has increased, the vacation pay must necessarily be calculated with the application of the coefficient. If the coefficient is not applied, the employee's income for January will be lower, which contradicts the philosophy of applying the coefficient.
Example: An employee took 14 days of vacation starting from January 10, 2025. Due to a mass increase, the employee's salary was raised in January. When calculating the vacation pay, the employee's income for the last 12 months (January to December 2024) should be calculated using the coefficient.