In 2026, an employee’s average salary is calculated in accordance with the applicable labor legislation procedure, based on the calculation period, time worked, and payments subject to inclusion. Article 114 of the Tax Code of the Republic of Kazakhstan does not establish a formula for such a calculation: it defines the concept and types of tax reporting (Art. 114 of the Tax Code of the Republic of Kazakhstan).
What Average Salary Means
Average salary is a calculated amount determined for a specific employee in cases where a payment must be calculated on the basis of average earnings. It should not be confused with the statistical average salary for the country, industry, or region: a statistical indicator does not replace an individual calculation based on the employer’s data.
For the calculation, the accountant uses information about the employee’s period of employment, the days or hours actually worked, and accrued payments. The composition of the source data depends on the grounds for the payment and the applicable procedure for calculating average salary. Therefore, the final amount should not be determined solely on the basis of the current salary rate or the total amount accrued without analyzing the purpose of each accrual.
Before making the calculation, the accountant should check not only the accruals in the accounting software but also the documents governing the employment relationship and remuneration system: the employment and collective agreements, the remuneration and bonus policy, the HR document serving as the basis for the payment, and the timesheet. The mere presence of an amount on a payslip does not explain whether it should be included in a particular calculation.
Article 114 of the Tax Code of the Republic of Kazakhstan does not concern the procedure for determining average earnings. It defines tax reporting as a document of a taxpayer or tax agent containing information, in particular, about income, tax liabilities, and social payments. Tax reporting includes returns and calculations with appendices, and its types are also defined (Art. 114 of the Tax Code of the Republic of Kazakhstan). Therefore, this article cannot be used as a basis for selecting the calculation period or the composition of payments.
Calculating Average Salary: Practical Procedure
The calculation begins not with an arithmetic operation but with identifying the event and payment for which average earnings are required. The calculation period is then established in accordance with the applicable labor legislation procedure and the employer’s documents. The boundaries of the period must be fixed before selecting accruals and working time data so that information relating to other dates is not included in the calculation.
If the employee did not work for the entire intended calculation period, the accountant uses data for the employee’s actual period of employment in accordance with the applicable calculation procedure. Where the collective agreement contains special terms, they are compared with the mandatory requirements of labor legislation and the documents governing the specific payment.
The practical review can conveniently be conducted in stages:
- Identify the event and document on the basis of which a payment calculated using average earnings is required.
- Establish the calculation period under the applicable procedure and check the dates of hiring, transfer, or termination of employment if they affect the boundaries of the period.
- Reconcile the days or hours actually worked with the timesheet.
- Compile a list of accruals for the selected period and check the purpose of each accrual.
- Determine the working-time units to be used in the calculation: days or hours.
- Apply the current procedure for calculating average salary to the verified source data.
- Reconcile the result with the underlying HR document, the timesheet, payroll registers, and the accounting software settings.
The accountant should not arbitrarily include any payment in the calculation merely because it was accrued to the employee or select the period producing the most favorable arithmetic result. For each accrual, its purpose, the period to which it relates, and the rules for including it when determining average earnings are important.
The choice between calculation based on days or hours must correspond to the grounds for the payment, the working-time schedule, and the applicable procedure. The source data are reconciled with the timesheet: the number of days cannot automatically be replaced with the number of hours, or vice versa. Particular attention should be paid to part-time work, schedule changes, and periods for which the registers contain no days or hours worked.
The phrase “calculation of average monthly salary” is often used as a general name for the procedure. However, simply dividing the annual amount of accruals by 12 is insufficient for an accounting calculation. The purpose of the payment, the calculation period, the accruals to be included, and the relevant working-time indicator must first be determined, after which the prescribed algorithm for the particular case must be applied.
After the calculation, it is useful to prepare a breakdown stating the grounds for the payment, the boundaries of the period, the working time included, the list of included accruals, and the sequence of arithmetic operations. Such a breakdown makes it possible to compare the result with the source documents and identify the cause of any discrepancy if the amount in the accounting system differs from the control calculation.
How to Calculate Average Salary Online and in 1C
An online calculator can help verify the arithmetic, but it does not determine the grounds for the payment or analyze the employer’s documents. Before entering the data, the accountant independently establishes the calculation period, verifies the time actually worked, and selects the accruals in accordance with the applicable procedure.
The result of an online calculation should be treated as a control calculation. The source data and a description of the algorithm used must be retained, and the handling of an incomplete period of employment, the employee’s schedule, and calculation in days or hours must be checked. If the service does not disclose how the source data are processed, its result cannot be compared with a manual calculation; the amount should therefore be recalculated under the rules applied by the employer.
In the current release of “1C:Payroll and HR Management for Kazakhstan” 3.1.37.x, the names of sections, documents, and commands should be determined from the interface of the installed configuration. Specifying a particular directory or navigation path without confirming it in this version may direct the accountant to the wrong software object.
Work in the software begins with checking the underlying HR document and source data, rather than searching for an object with a similar name. The accountant must compare the event dates, working schedule information, timesheet, calculation period, and composition of accruals. The automatically generated calculation and its breakdown can then be analyzed.
When reviewing the average salary calculation in 1C, attention should be paid to three groups of data:
- the event date, underlying HR document, and boundaries of the calculation period;
- the employee’s schedule and the days or hours actually worked;
- the composition of accruals, their registration periods, and the rules for including them in the calculation.
It should also be checked whether there are duplicate documents, corrections to accruals for previous periods, or discrepancies between HR documents and the timesheet. These circumstances may change the source data even if the arithmetic operation itself is configured correctly.
If the automatic result differs from the manual check, the calculation periods, working time, and list of accruals are compared first. The document dates and settings of the accrual types used are then checked. The final amount should not be corrected without identifying the cause of the discrepancy: such a correction does not explain which particular source data were incorrect.
Frequently Asked Questions
What period is used to calculate average salary? — The period is determined based on the grounds for the payment and the applicable procedure for calculating average salary. Before the calculation begins, its boundaries are checked against the event date, the employee’s period of employment, and the HR documents.
Can a different calculation period be established? — The terms of the collective agreement are applied subject to the mandatory requirements of labor legislation. For the calculation, the accountant must document the basis for selecting the period and apply it consistently when selecting working time and accruals.
Which payments are included in the calculation? — The calculation includes payments that must be taken into account under the applicable procedure for calculating average salary. Each accrual is checked against its purpose, period, and underlying document; the mere fact that an amount is recorded in the software is insufficient.
Can average salary be calculated online? — A calculator can be used to verify the arithmetic after the period, working time, and composition of payments have been determined. The accountant establishes the source data based on the employer’s documents and the applicable rules.
Where is the average earnings calculation performed in 1C? — The place where data are entered and checked depends on the type of payment and the interface of the installed release. For version 3.1.37.x, the document intended for the relevant event should be used, and its calculation breakdown, underlying HR document, timesheet, and included accruals should be checked.
Does Article 114 of the Tax Code of the Republic of Kazakhstan apply to the calculation of average salary? — No, this article regulates tax reporting: it sets out its concept, composition, and types (Art. 114 of the Tax Code of the Republic of Kazakhstan). It does not determine the procedure for calculating average earnings.