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 simpler if we look at the definition of the two words that make them up: “pluses” and “salary”.
The word “plus” comes from Latin plus which could be translated as “more”. According to the dictionary of the Royal Spanish Academy, 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, that is added to what corresponds or is considered usual. A public office requires an added degree of honesty.”
Thus, salary bonuses could be both 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 salary bonuses, salary. Wage and salary is very simple to define: Payment or remuneration which is received periodically and regularly to compensate for work carried out for an employer. According to the Workers' StatuteRoyal Legislative Decree 2/2015, of 23 October 2015), the total remuneration that a worker would receive would be calculated by adding two items:
If you look at the previous paragraph, you'll see that there isn't just one type of salary supplement, but several. What are the types of salary bonuses covered by current legislation in Spain? We'll look at them below.
Any company can improve a worker's basic salary by assigning one or more salary supplements covered by various labour regulations. In general, we could say that there are three different and non-exclusive types of salary bonuses: due to circumstances relating to 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 employee benefits:
Salary bonuses for personal circumstances of the employeeassigned by the worker's length of service in the company, by their specialised knowledge of languages or certain professional skills that directly result in an increase in their productivity and profitability, etc.
Wage bonuses for business circumstancesassigned due to benefits obtained by the company, to the improvement in its financial situation compared to previous periods, etc.
Wage bonuses due to circumstances of employmentassigned based on night work or the special danger of the work to be performed, due to having to work rotating shifts, etc.
One last thought to finish: salary bonuses are an excellent way to motivating our employees and gain that emotional commitment to our company, which is the foundation of success. Do you agree? Write a comment!
