As you know, the Workers' Statute (ET) establishes as obligation that workers have the right to a minimum of two extra payments: one at Christmas and another depending on the month set by the company, although it is usually in June or July. But what are prorated extra payments?
You are right to think that they are related to the extra payments, but, Have you ever thought about how that proration works? Or what do we mean exactly? All of that is what we want to talk to you about below. Shall we start?
What are prorated extra payments?
Following the thread with which we started this article, we have a minimum of two extra payments. They are received at Christmas and in June-July. But there are jobs and companies that do not pay them that way. In reality, they determine what would be called prorated extra pay. And what does it mean?
Well, Instead of receiving these extra payments twice a year, what is done is that they are received month by month. In other words, each month you receive what corresponds to your salary but also an "extra" that would be the proportional part of those payments.
For example, let's think about two scenarios: on the one hand, a worker who earns 1500 euros per month. On the other, a worker who earns 1100 euros.
Month by month, each one would collect that money. Now, both are entitled to their two extra payments. The first receives them prorated, which implies that month by month he receives an “extra” along with his salary; the second, on its specific date (one at Christmas and another in June).
Imagine it's December. By law you would have to receive extra pay. In such a way that the second worker receives 1100 euros of his December salary plus 1100 euros of his extra pay.
And the first? Since these extra payments were prorated, he would not receive two payments of 1500 euros, but rather he would be paid his salary, 1500, and the proration of those payments, that is, 1500 + 1500 (for the two payments) divided by 12 (months of the year ). Which gives us that he will receive 1500 euros plus 250 euros.
Of course, Sometimes the extra payments are not the same amount as the salary, but they take into account the base salary. Or, by collective agreement, an amount greater than that minimum can be established.
Can extra payments be prorated? Wouldn't it be illegal by the ET?
According to article 31 of the Workers' Statute:
«The worker has the right to two extraordinary bonuses per year, one of them on the occasion of the Christmas holidays and the other in the month established by collective agreement or by agreement between the employer and the legal representatives of the workers. Likewise, the amount of such bonuses will be established by collective agreement.
However, it may be agreed in a collective agreement that extraordinary bonuses are prorated over the twelve monthly payments.
Therefore, yes, Extra payments can be prorated but, to do so, it must have been agreed and registered by collective agreement. And, although legally one of these payments has a specific date to be received (Christmas), the law itself establishes that the proration of both can be established.
Now, as other conditions can be established by collective agreement (including receiving up to four extra payments), it can also be established that only one extra payment is prorated and another full payment is received at Christmas. It's not normal, but it could happen.
How the proration of extra pay is calculated
By law, it is said that Extra pay will never be less than 30 days of base salary or, at least, the minimum interprofessional salary.. This means that at least you will have that extra money; but by collective agreement or agreement with the company, your extra pay could be higher or you could even receive more pay.
And is that minimum always received? Not really. There are two cases in which the extra pay may be lower:
- When you are in ERTE.
- When there is a disability or medical leave.
Now, once the value of the extra payments is established (which will be the same value for both), the proration is made with a very simple calculation.
On the one hand, we add twice the amount of the payments. And with that new value, we divide by 12 months. That figure will be added to the monthly base salary of the payroll.
To make it easier for you.
Imagine that the extra pay is 1200 euros. If we add twice that figure we obtain 2400 euros. Now, we divide by 12, which gives us 200 euros per month.
Therefore, if the worker's salary is 1100, in reality what he would earn month by month (without three-year periods or other bonuses) would be 1100 plus 200, that is, 1300 euros.
What is better: prorating payments or receiving them in full?
Finally, a question you can ask yourself has to do with when the extra payments are received. Really, neither one thing nor another is better. First, because you will receive the same amount of money, whether at once or monthly. And second, because the choice is not up to the worker.
Workers do not decide when to receive payments but that is established by collective agreement and, if there is no reference to it, the company cannot prorate the payments, but will have to comply with the law and give 14 payments per year.
Only in the event that a worker is fired, would he or she receive the proportional part of his or her extra pay in the settlement. The rest would have to wait until Christmas and June or July to receive them.
Now that you know what prorated extra payments are, you can see if they appear as such on the payroll or not. If this is not the case, and you do not receive them in the usual months in which they must be paid, you already know that you can file a complaint because it is the right of all employed workers. Do you have any more questions about these payments?