Wage and non-wage supplements, what are they?

Employee benefits and non-salary benefits: what they are

In order to avoid future confusion when it comes to include salary and non-salary supplements in the payroll From a worker's perspective, the first thing we need to do is be clear about what these types of remuneration are. Let's get to it:

Salary and non-salary benefits – both of them – are remuneration or payments that a company does to an employee with whom it has a contractual relationship.

The difference between the two benefits – those relating to salary and those not relating to salary – 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 they form part of the salary and are set taking into account the personal circumstances of the worker, the economic circumstances of the company, or the type of work the employee performs for their 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 It consists of two parts: the base salary and salary supplements. The worker can receive their salary in two complementary ways: with a fixed remuneration and with a Flexible remuneration.
• Wage supplements they can be of different natures (as we will see 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.

Salary and Non-Salary Benefits: What are they

Now that we have a clear understanding of what salary and non-salary benefits are, we can get a better overview. which add-ons belong to one group or another.

Examples of salary supplements that form part of an employed worker's salary would be:

• Extraordinary payments summer, Christmas, etc.
• Seniority payments of the employee.
• Remuneration by 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 the company has obtained, partly thanks to an increase in the productivity of its workforce.
• Premiums or extraordinary payments that the company gives to the worker to reward their commitment to the company's objectives (bonuses for an increase in production quantity, bonuses for improving the quality of their work, etc.).
• Etc.

Examples of non-wage allowances that are not 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.).
• Redundancy payment or by temporary suspension of employment.
• Relocation compensation of the post to another province.
• Distance Pluses.
• Transport allowances.
• Etc.

In this article, we have tried to simplify the figures for salary and non-salary benefits as much as possible, but if you require more extensive information Press here to access the “Employment Guide on Remuneration for Employed Workers”published by the Ministry of Labour, Migration and Social Security of the Spanish Government.