New rules for the calculation of average earnings

The Government of the Russian Federation has approved Decree No. 540 dated 24.04.2025, which makes small adjustments to the way in which average earnings are calculated. The decree will come into force on 1 September 2025 and remain in effect until 1 September 2031. 

The decree introduces special rules regarding severance pay: average earnings will be provided for the average number of working days in a month (or, where working time is measured on a cumulative basis, the average number of hours in a month). 

In addition, the list of payments taken into account in calculating average earnings has been extended to include cash incentives. 

It should be pointed out that a number of major amendments were proposed during the discussion stage of the draft decree, including changes relating to the calculation of vacation pay, but these were not included in the final version. 

We would be happy to assist in reviewing calculation approaches to ensure compliance with the new rules from 1 September 2025.