What is the extra pay and when is it paid?
Posted: Wed Dec 18, 2024 5:48 am
If you are starting your first work experience and you do not fully understand all the concepts that appear in your contract, it is important that you know the breakdown of your gross salary , such as the case of the extra pay .
Although each contract is different, there are certain points that iran phone number data tend to be repeated and, precisely, extraordinary bonuses are present in most of these labor agreements.
Are extra payments mandatory?
Royal Legislative Decree 2/2015, of October 23, approving the Workers' Statute Law , establishes that "the worker will have the right to two extraordinary payments per year."
The date of such bonuses will be defined in the collective agreement, as well as their amount (we explain this below). However, the law defines that the amount cannot be less than 30 days of the base salary.
When are extra payments paid?
As mentioned above, the dates of the extra payments must be specified in the collective agreement. In any case, the law establishes that one of these payments will be made "on the occasion of the Christmas holidays and the other in the month set by collective agreement or by agreement between the employer and the legal representatives of the workers"; this is usually in the summer months.
However, it may also be agreed by agreement that the extraordinary bonuses are prorated over the twelve payments. This is a fairly common practice.
What does it mean for extra pay to be prorated?
When the employment contract indicates that extraordinary bonuses will be prorated, it means that each month of the year a larger amount will be received, but there will be no extraordinary payment at Christmas or during the summer months.
For example, if the extra pay considered is 1,200 euros, this amount is divided into the twelve months of the year. That is, if the monthly salary is 1,000 euros, considering the prorated pay it would be 1,100 euros per month.
Although each contract is different, there are certain points that iran phone number data tend to be repeated and, precisely, extraordinary bonuses are present in most of these labor agreements.
Are extra payments mandatory?
Royal Legislative Decree 2/2015, of October 23, approving the Workers' Statute Law , establishes that "the worker will have the right to two extraordinary payments per year."
The date of such bonuses will be defined in the collective agreement, as well as their amount (we explain this below). However, the law defines that the amount cannot be less than 30 days of the base salary.
When are extra payments paid?
As mentioned above, the dates of the extra payments must be specified in the collective agreement. In any case, the law establishes that one of these payments will be made "on the occasion of the Christmas holidays and the other in the month set by collective agreement or by agreement between the employer and the legal representatives of the workers"; this is usually in the summer months.
However, it may also be agreed by agreement that the extraordinary bonuses are prorated over the twelve payments. This is a fairly common practice.
What does it mean for extra pay to be prorated?
When the employment contract indicates that extraordinary bonuses will be prorated, it means that each month of the year a larger amount will be received, but there will be no extraordinary payment at Christmas or during the summer months.
For example, if the extra pay considered is 1,200 euros, this amount is divided into the twelve months of the year. That is, if the monthly salary is 1,000 euros, considering the prorated pay it would be 1,100 euros per month.