Salary is perhaps the most important part when we think about our work. There are a thousand things that we can forget, but not that, and it is the reason why you have surely come this far. Prorated payments should be considered for what they are, something that if they were not, your salary would be less. Or put another way, you would have the payments when they touch you.
If you have recently been in a job interview, or have just accepted one, in which you have been told about prorated payments, this article interests you. Having this possibility has its advantages, but also disadvantages. In order not to generate false expectations, we have dedicated this article to solving the most common doubts for those who are not familiar with Prorated Payments.
What are prorated payments?
According to Article 31 the Workers' Statute the worker is entitled to 2 extraordinary bonuses year. The way in which they can be paid may vary depending on the agreement that applies. The thing is that the salary is made up of 12 monthly payments, and those 2 extra bonuses that are received, are paid at the beginning of summer or at Christmas. There are different sentences that have come out over time, indicating the way in which these payments could be made effective.
When the payments are prorated, the amount of the annual salary does not vary, except for the monthly salary that includes the proportional part. In other words, add Along with the salary, the extra payments are divided between the 12 months. In this way, the salary is slightly increased, but the worker keeps the same amount for the rest of the year. So if you have prorated pay, if you want to compare your salary, the proportional part should be subtracted, to determine the real salary.
Is this more beneficial for the employer or for the worker?
For the worker it is exactly the same, because the final money that is going to arrive whether the payments are prorated or not is the same. The "defenders" of extra payments often argue that receiving more money at certain times is a joy. In the same way that a person who costs more to save will be more reassured those two times of the year. On the other hand, if they are prorated, there is no greater incentive at any time of the year, so in the end, in cases of incurring certain expenses, it is easier to fall into toxic credits. But this is very personal.
On the part of the company, if it has few workers, it may be better to prorate the payments by having a more linear and easy-to-control treasury. The idea is that there are no spending peaks at certain times. But if we are talking about a large company, it can still be interesting to keep the extra payments, especially if there is interest in investments and financing. Of course, never neglecting the duty to pay the extra to their workers when the time comes.
How is the extra pay calculated?
The employer is not in charge of setting the amount, but it can never be less than 30 of the fixed or minimum interprofessional salary. Keep in mind that although the extra pay does not count as contribution days yes you have to pay income tax. Taking into account that the salary, as well as the extra pay, is Gross, for the following calculation we will not take into account the IPRF.
Let's imagine that we start working for a company on September 1, and our first extra comes in December. Suppose that the salary is 1.000 euros exact gross. The calculation would be the following.
€1.000 X 120 days / 360 = €333,33. This is the gross extra pay that the worker would have to receive.
Then, the next extra payment would fall to him in June of the next year. Having been working for 10 months, the calculation would be as follows:
1.000 X 300 days / 360 = €833,33. This would be his second payment.
Finally, Spent a whole year in the company, we would have contributed long enough for the payment to be in full to that set in the salary. Of course, commissions and bonuses do not interfere in said calculation. Another issue is that the company gives bonuses in some other way, but these are already unofficial conditions as agreed in the conditions when starting work or according to the will of the company.
Do I choose prorated or non-prorated pay?
As we saw in the point of whether it was more beneficial for the employer or worker, this It will depend on whether you are a saver or not.. The money you are going to receive will be the same in any case. Here the compelling reason will be that if you are a person who knows how to control expenses, or knows how to manage well financially, it will be interesting to ask for it prorated. If, on the other hand, numbers are not your forte, wait until summer or Christmas begins, in addition, it will be a very pleasant surprise to see the extra in your account, and you will not have to pay unnecessary expenses beforehand.
I hope this article has helped you, and you have been able to solve your doubts about prorated payments.