How are extra payments calculated and what are their limits? In this post we clarify this and other doubts about extra payments.
In July, those workers who have their salary divided into fourteen payments will receive the summer bonus, while other employees will receive it in June. Therefore, we consider that it is time to review this way of distributing remuneration. In this post we analyze: what bonus payments are, how they are calculated and how they are taxed .
Start of marked textSHARE IT! Do you have questions about how extra payments are calculated and taxed? We explain everything you need to know!End of marked text
Extra payments are a right of employees included in article 31 of the Workers' Statute (ET) which establishes the following:
The employee is entitled to two extraordinary bonuses per year, one on the occasion of the Christmas holidays and the other in the month determined by collective agreement or by agreement between the employer and the legal representatives of the employees. The amount of such bonuses shall also be determined by collective agreement.
However, it may be agreed in a collective agreement that the extraordinary bonuses be prorated over the twelve monthly payments.
Therefore, all employees are entitled to at least two canadian colleges universities email list extraordinary bonuses per year: one of them will be paid during the Christmas period and the other will be paid at the time indicated by the applicable collective agreement or the agreement between the employer and employees. In addition, the ET regulates the possibility of prorating the extra payments into twelve monthly instalments.
How are extra payments calculated?
To find out how extra payments are calculated, the following formula can be used:
Amount of full extra pay x (time period worked / pay accrual period)
The period of accrual of the bonus payment is the time that an employee must work to generate the right to receive the full bonus payment. In general, this period will be established in the collective agreement and can be annual, half-yearly or quarterly, in the case of having a benefit payment. The agreement will also establish the amount of said bonus, although we must consider that each bonus payment can never be less than 30 days of the base salary or the minimum interprofessional salary.
