Item 7 – Salary
Item 7 – Salary
1 – Definition
A worker under the Constitution is entitled to an income sufficient to meet their needs and those of their family. The salary is set freely but cannot be less than the minimum set by law or collective agreements, respecting equality between men and women.
Definition: Totality of economic perceptions of workers in cash or in kind for the provision of services, allowance for the actual work and rest periods. It is integrated into the contribution base of Social Security. The employee must meet the burden of Social Security tax, and therefore the employer deducts from its workers the contribution to Social Security.
Rest periods as work: The employer must also pay for certain periods of rest or work in certain cases.
Wages in kind: Non-monetary remuneration. This wage only exists when it is fixed by law or by express or tacit agreement. Only species can be seen in 30% of the salary.
2 – Remuneration Fringe
Amounts received by workers that are not considered wages due to the lacking consideration of the nature of the consideration. Three concepts:
- Amounts that compensate or indemnify the worker for expenses incurred in connection with work activity.
- Compensation or benefits from Social Security.
- Severance payments for transfers, suspensions, or dismissals. (They are not subject to levy or income tax unless the amounts are very high, exceeding the previous 3.)
Compensation for expenses: It is not considered wages (tool wear, work clothes, distance…).
Travel expenses: Costs generated by the worker to move to a place other than where they provide services. It is included in the contribution base, but no more than certain amounts.
Plus distance and urban transport: They are not wages. Compensation for travel expenses from home to normal work.
Benefits of Social Security: The worker receives them in advance, but then follows.
Compensation for transfers, suspension, or termination of contracts: Compensation payments for expenses or damages to the employee due to a business decision of transfer, suspension, or termination of the contract.
Tips: Do not come in the rules, but they are fringe benefits because they do not constitute consideration for the job, but rather an income that is produced by the release of a third party.
3 – Structure of Wages
Determined by collective bargaining or individual contracts. It consists of:
3.1-Salary base: Fixed per unit of time or work, serving as a reference for calculating other elements. (Wage per unit of time: Length of service. (Wages, salary) on a piecework wage: Amount or quality of the work. (piece work)).
3.2-Bonuses: Additional amounts to the basic wage for the existence of a specific topic together to determine the total salary. Three sets of circumstances:
- In response to the personal circumstances of the worker: Personal or professional qualifications of the employee not taken into account when setting the base salary:
- a-Complement-old (collective agreement or individual contract)
- b-language supplement, degree, or special knowledge (collective agreement or individual contract, the special skills are not consolidated).
- Because of work done: It reflects the physical aspect of work (difficulty, toxicity, shifts, travel…).
- a) Premiums for toxicity, difficulty, danger, or similar.
- b) Premium Liability: Under a collective agreement or individual agreement due to the increased burden of the job.
- c) Flexibility in the use of labor: (Add-time availability, operational availability Complement: Prima versatility, their payment is based on a daily basis, Extension of the day: Give back to the realization of a larger work or expanded in time.
- d) Because of the quality or quantity of work: (Premiums and incentives, bonuses of activity, Assistance and attendance, Overtime.
- e) Attendance and punctuality bonuses: To combat absenteeism.
- f) Convention Plus: No consideration of a salary supplement, but economic perception inserted in salary according to professional category.
- g) Complements of residence: Plus for compensation and travel.
- The location and company performance: Add in relation to the benefits of the company, so do they involve the worker in the business of production. Your source of regulation is the collective or individual autonomy, and the statement of consolidated basis or not.
3.3-Special Bonus: You have to pay two extraordinary payments (two paid for 30 days each) a year, Christmas and one month to issue the Convention or by agreement between the employee and the company. They are quoted, they fall under income, and Social Security sets the maximum and minimum charge. You can arrange the payment in 12 monthly installments and prorate the amount fixed by the collective agreement.
4 – Determination of the Amount
Wages are fixed by agreement between the employer and employee by occupational category. Once given, they cannot be changed.
4.1-Limits to freedom of wage determination: The agreement must comply with certain minimums set by the minimum wage, collective agreement, and the “principle of equality and non-discrimination.”
Minimum wage (SMI): Fixed minimum remuneration for all workers. (The Government sets the amount annually, the review does not affect SMI higher wages, wages are computed in cash and in kind, if it is a minor time perceived proportion, the SMI is attached.)
Collective Agreement Salary: Collective agreements are a source of law relating to employment. They have set a value above the SMI.
Principle of equality and non-discrimination: You cannot make adverse discrimination by sex, national origin, marital status, race… The “principle of autonomy of will” leaves a margin in the private agreement to the employer’s unilateral decision in the exercise of their powers.
5 – Legal Protection of Wages
In the event of insolvency, debts owed to workers must be protected by a privilege (to be paid before non-privileged creditors, including the State and Social Security).
5.1- Wage credit privileges:
- Superprivileged credits: The appropriations pay for the last 30 days (not exceeding twice the SMI) have precedence over any other, despite being secured by a mortgage.
- Credits with special preference for auto parts: The wage claims have priority over other credit for articles made by workers, while owned or held by the employer (12 months).
- Credits in Ordinary preference: The remaining credits to the previous unprotected and not exceeding the amount obtained by multiplying SMI by 3 the number of days outstanding are considered uniquely privileged.
5.2-Unseizability: It is a mechanism of protection against executive actions by creditors of the patrimonial nature of the worker. There are two levels:
Absolute immunity from seizure: The SMI at the current level is unattachable by unsecured creditors against the worker.
Relative unseizability: The wages above the SMI can be run as a scale.
5.3-Wage Guarantee Fund: It is an autonomous body administrative body under the Ministry of Labour and Social Affairs (FOGASA). FOGASA is structurally and functionally dependent on the General Secretariat of the aims organismo.Su pay to the workers, the amount of unpaid wages by reason of insolvency, suspension payments, bankruptcy, or creditors of the employer.
Concepts and guaranteed amounts:
Salary: Not to exceed 120 days, the total number of days counted. As a basis of calculation is that pays the worker. If lower, it is applied to the salary actually collected.
Allowances: Paid by the social fund when requirements are met: (Amount not exceeding the ceiling of an annuity and daily wage not exceeding twice the minimum wage.)
6 – Compensation and Salary Absorption
What it does is freeze the salary, but some wage increases to which the employer is required can be compensated with wages that the worker placed above the convention.
7 – Settlement
Amounts of salary the employer owes the worker regardless of the cause of extinction. The salary elements are falling: The month, you pay extra (prorated): No break in and have already been listed for trading, but if you enter income, unexpended Holidays (30 days), Payment of compensation.
8 – Settlement and Payment of Wages
It is made monthly through payroll. The claims shall be made within one year; then, there is nothing to do.