Methodology for Calculating the Average Number of Employees According to INS and MFP
In Order MFP No. 1802/2014, the average number of employees is used as one of the classification criteria for economic entities. However, the exact calculation methodology is not detailed in this regulation. According to the Guidelines on the Application of Accounting Regulations issued by the Ministry of Public Finance (MFP), the average number of employees is determined according to the methodology established by the National Institute of Statistics (INS).
Definition of the Average Number of Employees
According to the INS, the average number of employees includes individuals employed under an employment contract or service relationship, for a fixed or indefinite period, provided that the employment relationship is not suspended during the reference period. This value is determined using the simple arithmetic mean of the daily number of employees, including:
✔️ Working days
✔️ Weekly rest days
✔️ Public holidays
✔️ Other non-working days
Formula for Calculating the Annual Average Number of Employees
Annual Average Number of Employees = ∑Daily Number of Employees/Total Number of Days in the Year (365 or 366)
Where:
Daily number of employees = the total number of active employees on a given day, regardless of whether it is a working or non-working day.
Total number of days in the year = 365 or 366 (in leap years).
Determining the Daily Number of Employees
The count includes the number of active employees at the end of each day, including non-working days.
✅ Included in the calculation:
🔹 Employees with fixed-term or indefinite contracts
🔹 Employees on medical leave, in isolation, or quarantine, if paid by the employer
🔹 Employees in technical unemployment with an allowance from the base salary
🔹 Employees with reduced working hours, proportional to their working time
🔹 Employees receiving compensation for supervising children in case of school closures
❌ Excluded from the calculation:
🚫 Employees on unpaid leave
🚫 Employees on strike
🚫 Business owners who operate solely based on dividends/profits
🚫 Day laborers and collaborators without an individual employment contract
Calculation of the Monthly Average Number of Employees
To determine the average number of employees at the monthly level, the formula is:
Monthly Average Number of Employees = ∑Daily Number of Employees in the Month/Total Calendar Days in the Month
Special Considerations
📌 For part-time employees, their inclusion in the average number of employees is proportional to the working time specified in the contract.
📌 If a company is established or ceases activity during the year, the annual average number of employees is calculated only for the active period.
This methodology is used both for accounting reports and official INS statistics, impacting the classification of companies according to the regulations of the Ministry of Public Finance.