The bonus, which is paid twice a year, is sometimes preferred to be distributed proportionally over twelve monthly payments.. Those who choose this alternative do so to increase their purchasing power and make ends meet more comfortably.
Some of them, in addition to opting for a pro-rata bonus, they agree with their employer to take advantage of a model of flexible compensation. The two options are compatible and the combination of the two makes more money available to the employee. Do you want to know how it works and what are the benefits of combining these two salary approaches?
The first thing to be clear about is that is charged the same when are received:
Although the Christmas bonus money, for example, arrives all at once and is perceived as a larger sum, in reality it's the same amount the employee would receive if it were spread over the previous or subsequent six months.
However, there is a difference. It has to do with planning and management.. When the same amount is received every month of the year, it is easier to manage that money, make forecasts and save. This is the great advantage of the pro-rata bonus.
We all know that when you receive two bonuses a year, not prorated, they are used to cover specific expenses related to dates, Christmas celebrations and summer plans; perhaps to plug some “hole” and not much more. The result is that the remaining months are tighter than with the relief of the pro rata.
However, there are those who know how to make even more of their salary, even in the case of meagre wages. These are the employees who know Flexible remuneration.
In this case, they decide to substitute part of their salary for payment in kind for a certain item, chosen by the employee themselves and subject to change as their needs evolve, such as:
The advantage is that, on the one hand, your expense management is simplified, payment punctuality improves, and surcharges for debt are avoided. Furthermore, the most important benefit of flexible remuneration is that the expenses covered are exempt from income tax. This can save you several hundred euros a year. Now that's a bonus.
So, it's time to adopt a more mindful and logical household accounting approach. Seek simplicity, convenience, and savings. Do you already have the extra pay pro-rata? Had you considered opting for flexible remuneration?
