On September 1, 2025, new rules for calculating average earnings approved by Government Decree No. 540 of 24.04.2025 will come into force. They will replace the current rules of Decree No. 922 and will be used in calculating vacation pay, severance pay and other compensation payments. The innovations concern the procedure for determining average income, including the calculation of vacation pay, severance pay and other payments dependent on average earnings.

It prescribes the procedure for accounting for bonuses, salary increases, and also includes new guarantees in terms of compliance with the level of not less than the minimum wage.

The main objective is to unify the rules for calculating average earnings, taking into account all types of payments related to labor remuneration, and to ensure fairness in the calculation of compensation and benefits.

What is important for employers and employees to know:

The changes affect all participants in the labor relationship. Employers must make updates to the company’s internal regulations.

Employees, in turn, can expect a more accurate calculation of average earnings.

Important: the updated procedure applies to all cases occurring from September 1, 2025, regardless of when the calculation period began.

Source: Government Decree No. 540 of 24.04.2025