Wage concepts: what they are and examples

The salary concepts are the basic salary and the allowances that are included in the employee's pay slip, dictating the amount to be received by the employee in each monthly payment.. Contrary to what some people may think, salary concepts do not only constitute the different types of variable remuneration, The minimum wage is not only determined on the basis of the type of work performed, the employee's personal circumstances or the company's results, but also includes a fixed minimum which is determined according to the group, post or category in which the employee's activity falls.

The basic wage in the wage concepts

In 2018, the minimum wage will be set at 24.53/day or 735.9 euros/month.. This is a non-negotiable minimum amount above which it is possible to increase the amount of money received by each worker per month by Collective Agreement.

However, it is possible that employees in the same position within the company receive different salaries. In some cases, the payroll may be larger than in other cases, and There are several reasons for this: one is the allowances, the other component of the wage items; and the other is flexible remuneration, which entails advantages such as tax exemption.

Exchange part of the salary received for Transport Ticket, Ticket Restaurant o Childcare Ticket makes more money come home at the end of the month, as payments made through this system are tax-free.

In addition, having these cards has many additional advantages for the employee, such as:

• The possibility to choose between different places to eat every day.
• The convenience of not needing to carry cash and benefiting from a secure transport payment system.
• Save 20% of the cost of childcare, thanks to the personal income tax exemption.

In addition to these advantages for the company, there are also those derived from the deduction of the taxable base of some of these Tickets in the Corporate Tax, the ease of recharging the cards, the greater motivation of the staff and the greater attractiveness of the company., The company offers tax advantages and more flexibility to its employees.

The best-known wage concepts: the allowances

The complements, in any of their varieties, finish off the complete the employee's payroll by constituting, together with the basic salary, the wage items. Each employee will receive different allowances which will be fixed according to variables such as the following:

• Aspects relating to the employee's personal conditions. Years of service with the company or the employer. employee's academic background may make you a recipient of one of these wage supplements.
• Issues that depend on the work performed by the employee. Work that has to be carried out at night or requires extensive availability, work that is dangerous or arduous, or work that is carried out in an environment with toxic risks is often compensated with a supplement. See The same happens when we talk about a work performance that stands out for quality or performance, in that case, within the salary concepts, the employee will surely see a productivity incentive included.
• The company's situation and results. These are complements that, depending on objectives or benefits, reward the employee who is committed and active in the good running of the business.

There are many ways to increase the profitability of some WAGE ITEMS to make the same conditions more beneficial. Ready to raise the value of your payroll?