16 November 2018

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 interprofessional minimum wage has been fixed at 24.53 euros/day or 735.9 euros/month. This is a minimum non-negotiable amount from which it is possible to increase the amount of money received by each worker per month through Collective Bargaining.

However, employees in the same position within the company may receive different salaries. In some cases, the payroll may be higher than in others and There are various reasons to justify it: one is the benefits, the other component of salary concepts; and another is flexible remuneration, which implies advantages such as tax exemption.

Exchange part of the salary received for Transport Ticket, Ticket Restaurant or Nursery Ticket ensure more money comes into the household by the end of the month, as payments made through this system are tax-free.

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

The possibility of choosing between different places to eat each day.
The convenience of not needing to carry cash and benefiting from a secure transport payment system.
Save 20%% of the nursery fee, thanks to the income tax exemption.

To these advantages must be added those derived for the company, such as the deduction from the taxable base of some of these Tickets in Corporation Tax, the ease of topping up the cards, the increased motivation of the workforce, and the greater attractiveness of the company., which offers tax advantages and more flexibility to its employees.

The most well-known salary concepts: allowances

The complements, in any of their varieties, finish off the complete the worker's payroll, constituting, together with the base salary, the salary components. Each employee will enjoy different additions that will be fixed based on variables such as the following:

Aspects relating to the personal conditions of the worker. Years of service for the company or the academic background of the worker may make you a recipient of one of these wage supplements.
Issues that depend on the work performed by them. Work that must be carried out during night hours or that requires wide availability, a dangerous or arduous activity, or that which is carried out in an environment with toxic risks, is usually compensated with a supplement. The same happens when we talk about work performance that stands out for quality or results; in that case, within salary concepts, the employee will surely see a productivity incentive included.
The company's situation and results. These are add-ons 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 increase the value of your payroll?