The issue of salary and non-wage supplements is interesting for several professional profiles: the manager or owner of the company, the staff involved in accounting and payroll management and, of course, the employee who will eventually receive or not these allowances. Are you clear what and what are wage and non-wage allowances that can be paid or received? If the answer is “no”, read more because we are going to tell you about it in the quickest and easiest way possible.
Wage and non-wage bonuses: what are they?
In order to avoid future confusion when it comes to include salary and non-wage allowances in the salary statement The first thing we have to do is to be clear about what this type of remuneration is. Let's get down to it:
Wage and non-wage allowances - both are remuneration or payments that a company makes to an employee with whom it has a contractual relationship.
The difference between the two allowances -wage and non-wage- is that the former are part of the salary of the employed person and the latter do not. We clarify this a little better in the form of key points or ideas:
Wage supplements are part of the salary and are determined taking into account the employee's personal circumstances, the economic circumstances of the company or the type of work performed by the employee for his or her company.
Non-wage supplements are payments that do not form part of wages and are normally used to pay compensation or pre-payments made by an employee.
The salary of an employee is made up of two items: the basic salary and the salary supplements. The employee can receive his or her salary in two complementary ways: with a fixed salary and with an additional salary. flexible compensation.
Wage supplements can be of different natures (we see this in the next section) and are usually set through collective bargaining.
Non-wage supplements These are usually allowances, subsistence allowances and payments to the employee to satisfy previous payments that the employee has had to make in the course of his or her day-to-day work.
Wage and non-wage bonuses: what are they?
Now that we are clear on what salary and non-wage allowances are, we can better understand what they are. which complements belong to one group or the other.
Examples of salary supplements which form part of an employee's salary would be:
Extraordinary payments summer, Christmas, etc.
Seniority payments of the employee.
Compensationby residence (workers residing, for example, in Ceuta or Melilla).
Job allowances when the work is carried out at non-standard hours (night work), when the circumstances are particularly arduous (work at depth or at height), etc.
Participations in economic benefits that the company has obtained thanks, in part, to an increase in the productivity of its workforce.
Premiums or extraordinary payments that the company gives to the employee to reward his or her involvement in the company's objectives (rewards for an increase in the quantity of production, rewards for increasing the quality of his or her work, etc.).
Etc.
Examples of non-wage allowances which do not form part of an employee's salary would be:
Payment of expenses the employee has made during his working day (expenses in fuel, in Edenred Mobility,, etc.).
Severance pay or by temporary suspension of employment.
Transfer allowance of the post to another province.
Distance Pluses.
Transport allowances.
Etc.
In this article we have tried to simplify as much as possible the figures for salary and non-wage bonuses, but if you need more extensive information, please contact us. click here to access the “Labour Guidance on Employee Remuneration”published by the Ministry of Labour, Migration and Social Security of the Spanish Government.
