How to calculate vacation pay after maternity leave:
calculation period and earnings

An employee returned from maternity leave, worked for a couple of months, and requests vacation — and the accountant is in trouble: she earned almost nothing during the billing period, as she was on maternity leave. The question of how to calculate vacation pay after maternity leave is one of the most common and tricky calculations, as the standard formula often fails. In this article, we’ll discuss which billing period and earnings to use when there’s no income in the standard period, and how to avoid underestimating the payment. This article is for accountants and payroll specialists who handle vacations for employees returning from maternity leave and want to calculate everything accurately.

Why the usual formula doesn’t work

Vacation pay is calculated based on average earnings for the billing period — generally, the 12 calendar months preceding the vacation month. However, for an employee returning from maternity leave, this period is almost entirely taken up by maternity and parental leave, during which there was no salary. If we were to calculate this period mechanically, the average earnings would be close to zero, and the vacation pay would be unfairly meager. Therefore, a special rule applies here.

Let’s look at the calculation period for vacation pay after maternity leave: if the employee had no actual days worked or earnings during the calculation period (she was on maternity leave or parental leave), the calculation period is replaced. The previous period of the same duration is used — the 12 months preceding the start of maternity leave. This means the employee’s earnings before going on maternity leave are used.

What earnings to take and how to calculate

Let’s clarify what earnings are used for vacation pay after maternity leave. The logic is as follows: if there are no days worked in the standard 12 months, average earnings are calculated based on earnings for the 12 months preceding the start of maternity leave. This protects the employee from underestimation: her vacation pay is calculated based on her actual pre-maternity leave income, not on the "empty" period of child care. If, however, she managed to work for some time after maternity leave, additional rules for choosing the period apply.

Next comes the standard mechanics: the average daily earnings are multiplied by the number of vacation days. The difficulty, again, isn’t in the arithmetic, but in correctly selecting the period and collecting earnings data for the required months. An error at this step will either result in an underpayment (and the employee’s claim) or an incorrect calculation, which will be revealed during an audit. Therefore, it’s important to correctly determine the period and have reliable income data on hand.

An expert at Dobyto, a specialist in personnel payments: "A classic mistake is to use the standard 12 months for a woman returning from maternity leave, which involves childcare, and then receive a paltry vacation pay. The rule is simple: if there’s no income in the calculation period, use the period before maternity leave. And to keep income and vacation data from previous years readily available and prevent it from getting lost, we recommend maintaining it in a single system rather than manually collecting it from archives."

How to simplify calculations and accounting

Complex cases like maternity leave are particularly sensitive to the quality of the source data. Electronic HR document management helps keep it organized, and here’s what really makes the payroll clerk’s job easier:

• Autofill fields from the accounting system — maternity leave dates, periods, and income data are automatically entered, eliminating typos.
• Unified storage of earnings and vacation history in Dobyto – income and vacation time information is collected in a single service, eliminating the need to manually retrieve it year by year.
• Submitting vacation requests and monitoring remaining days — employees can see their remaining days and submit requests in just a few clicks.
• Automatic order generation based on an application — the order is prepared with the correct dates, and the HR officer only needs to sign it.
• Viewing pay slips and balances in your personal account allows employees to see their accruals directly, reducing the number of questions.

When earnings and vacation history are stored in a single system, selecting the correct calculation period and finding data for the required months is much easier than combing through paper archives. For the accounting department, this means fewer errors in sensitive calculations and fewer disputes with employees.

How to calculate vacation pay after maternity leave: a step-by-step guide

1. Step 1. Determine the standard calculation period - 12 months before the month of vacation.
2. Step 2. Check whether it actually included days worked and earnings.
3. Step 3. If the period is “empty” (maternity leave and child care), replace it with the 12 months before the start of maternity leave.
4. Step 4. Collect earnings data for the selected period.
5. Step 5. Calculate the average daily earnings according to the established rules.
6. Step 6: Multiply it by the number of vacation days and process the payment.

Frequently asked questions

What period should I take for vacation pay if I was on maternity leave the entire year?

If there are no days worked or earnings within the standard 12 months, the calculation period is replaced by the 12 months preceding the start of maternity leave. This prevents underpayment. The Dobyto service stores data on periods and income, making it easier to select the correct calculation period.

What earnings are used to calculate vacation pay after maternity leave?

From the employee’s pre-maternity leave earnings — for the 12 months preceding the start of maternity leave, if the standard period is empty. This ensures vacation pay reflects actual income, not the "zero" period of maternity leave. In Dobyto, income information is available in the system, helping to avoid losing important data.

Why can’t we take the standard 12 months?

Because those returning from maternity leave have almost no earnings, the average income would be unfairly low. That’s why the law requires period substitution. The Dobyto service helps you maintain your vacation and income history so you can select the correct period without errors.

What should I do if an employee has already worked for several months after maternity leave?

In this case, the rules for selecting the period based on the time worked are applied, and the calculation may vary. The main thing is to correctly determine which period provides a reliable average salary. Dobyto has up-to-date work and income data readily available, making this calculation easier.

How to avoid errors in such calculations?

It’s important to choose the right billing period and have reliable earnings data for the required months, rather than manually collecting it from archives. The Dobyto service, integrated with 1C:ZUP, stores this data in a single place, reducing the risk of underpayments and disputes.

Vacation pay after maternity leave is calculated according to a special rule: the empty calculation period is replaced with the income before maternity leave, otherwise the payment will be unfairly understated. Digital accounting at dobyto.ru helps keep income and vacation data organized and simplifies these calculations.