Most of us have heard of the salary bonuses But do we really know how they work? How many types of bonuses exist? How can we choose the right bonus for each specific case? Read on because today we have set out to answer all these interesting questions.
Understanding the concept of salary bonuses is easier if we look at the definition of the two words: “bonuses” and “salary”.
The word “plus” comes from Latin plus which could be translated as “more”. According to the dictionary of the Real Academia, the term plus has two meanings (we copy and paste literally):
“1. m. Money supplement with which a salary or a price is increased, occasionally or regularly. I receive a hazard bonus. An excess baggage allowance.
2. m. Supplement, material or otherwise, which is in addition to what corresponds to or is considered usual. Public office requires extra honesty”.”
Thus, salary bonuses could be both the extra money that are added to a given wage for various reasons such as any other type of supplement or complement non-monetary.
«Discover how to increase your employees» salaries without increasing costs".»
Let's now look at the second word in the term wage bonuses, the salary. Wage and salary is very simple to define: pay or remuneration which is received on a regular and periodic basis to compensate for the performance of work done as an employee. According to the Workers' Statute (Royal Legislative Decree 2/2015, of 23 October 2015), the total total pay that a worker would receive would be calculated by adding two items together:
If you look at the previous paragraph, you will see that there is not just one type of salary supplement, but several. What are the types of salary supplements provided for by current legislation in Spain? We look at them below.
Any company can improve an employee's basic salary by assigning one or more salary bonuses contemplated by the different labour regulations. In general, we could say that there are three different and non-exclusive types of salary bonuses: for circumstances of the worker, the company and the work performed. In this case “non-exclusive” means that these different bonuses can be added together and contribute to improving the worker's final monthly and annual remuneration.
A couple of lines on each of these types of allowances:
Salary bonuses for personal circumstances of the employeeThe following are some of the factors that may be taken into account: seniority in the company, specialised knowledge in languages or certain professional skills that directly result in increased productivity and profitability, etc.
Wage bonuses for business circumstancesThe following are allocated for the profits obtained by the company, for the improvement in its financial situation compared to previous periods, etc.
Wage bonuses due to circumstances of employmentassigned on the basis of night work or the particular hazardous nature of the work to be carried out, due to having to work rotating shifts, etc.
One final thought to conclude: salary bonuses are an excellent way of motivating our employees And to achieve that emotional commitment to our company that is the basis for success. Do you agree? Write a comment!
