What is the liquid salary

 

Understanding what is the net salary

To understand what is the liquid salary, first of all, we must understand the definition of the concept of salary. The salary is defined as the total of the economic perceptions that workers receive as consideration for their services. This is also usually provided during rest periods computable as work - in cash or in kind. According to the law, the salary provided in kind, for no reason may exceed 30% of the worker's salary perceptions. The rest periods that are computable for work are:

• Weekly rest and holidays.
• Annual vacations.
• Rest, not less than 15 minutes, on a day that has been agreed.
• All work interruptions that are attributable to the employer due to lack of work, or processing time for dismissals declared null or unfair.
• Excusable absences from work that are entitled to compensation such as permits and licenses to search for work.

Salary structure

A salary always has a structure, which is defined by collective bargaining or, through an individual contract. This structure should include the following:

• The base salary. It is the part of the worker's compensation set per unit of time or work. Its amount is established for each and every one of the categories in collective agreements.
• Salary supplements. Complements that may be regulated in the laws or in the collective agreements.
  • Personal accessories;
    • Special knowledge.
    • Antiquity
  • Job accessories; toxicity, shift work, dangerousness at night.
  • Supplements due to quality or quantities of work.
  • Extraordinary hours. These may be paid if a quantification of the same is agreed, but it can never be less than the value of the ordinary hour. However, it should be taken into account that they can be compensated for the equivalent paid rest time.

There is also the salary in kind, this salary is made up all those assets owned by the company or that are provided by it to be used for private purposes, either free of charge or because it is offered at a lower price than the market price. For example, when a company provides a car outside working hours, it will be considered as salary in kind. In this case, if we want to know the value of said salary, we must only take into account the proportion of the hours that the car was used outside of working hours.

That is not salary

It is not considered salary to all those amounts received by the worker as compensation or supplies due to expenses incurred as a result of their work activities, benefits, compensation for transfers, Social Security compensation and suspensions or dismissals.

Not included in salary:

• Compensation for work-related expenses. Economic compensation for the expenses made by the worker during or for their work activity such as work clothes, travel meals.
• Compensation due to death. The employer must pay the heirs of the deceased worker, all the wages that he would have earned and could not receive.
• Compensation corresponding to transfers, suspensions, dismissals or dismissals.

Now, a very common question for when talking about payroll and employee compensation systems, there is doubt as to whether salary and salary mean the same thing.

They are salary and salary the same?

Although both words refer to the compensation or remuneration of professionals hired by a company or an individual, these words they are not synonyms.

El wage is the economic amount that a worker receives as consideration for his quantified services on a daily or hourly basis. That is, salary is defined per unit of time. We refer to the fact that a person has a salary when he or she works by the hour or by the day and is paid according to the amount of this unit achieved.

The salary is a fixed remuneration; a defined quantity without variation that is always received the same in the agreed time.

Now understanding the basic concepts to know about salary and what makes it up, it is important to consider that there are two different ways to appreciate a salary. These two views are gross salary and net pay.

Net salary

It is the total of the compensation that the worker receives, whether it is a salary in money or in kind, this value is the one that is presented before the corresponding discounts in the payroll.

Net Salary

Also called pocket salary, it is the amount that finally goes to the worker's pocket taking into account that he does not count bonuses, that the reductions of the law are discounted, deducting the income withholding, the contributions that correspond to retirement are discounted, to social and / or union work, life insurance.

This salary is obtained when it is subtracted from gross salary all the worker's contributions to social security.

The amounts that are included in the discount of the gross salary of a worker are destined for the following concepts:

• Common contingencies: whose objective is to pay sick leave and benefits in the event that the worker could have an accident or have an illness, for example.
• Professional contingencies: where amounts are given due to dismissal or change of position.
• Travel: Transfer outside of work facilities, lodging and meals
• Training: The value of courses or training is not taken into account

When the payroll is received, it must be possible to appreciate the concepts of gross salary and what it is composed of. In the part of the payroll, a part known as accruals will be presented, it is there where you can see a summation of all the concepts that make up the gross salary. Within this part are marked the deductions or contributions to social security, these amounts are those that must be subtracted from the total in order to better identify and define the liquid salary.