Post by joypaultop1 on Jan 16, 2024 4:24:41 GMT 1
Before preparing summer extra pay, you may need to review some points about what the legislation says. We have compiled the most important things so that you can have it summarized but we also want to go beyond the calculation of double summer pay. What value does it have for the people in your company? What does it mean to prorate summer extra pay? Can it be a tool to improve talent retention? Table of Contents Extra summer pay, a recognized right How is the summer extra pay calculated? What does it mean to prorate summer extra pay? How are prorated extra pay calculated? Is there a minimum time to collect summer extra pay? Does extra summer pay increase performance? Extra summer pay, a recognized right Spain is one of the few countries with 14 payments a year , and not 12, with the extra summer pay and Christmas pay. And, as Royal Legislative Decree 2/2015, of October 23, which approves the Workers' Statute Law , points out , "the worker will have the right to two extraordinary payments per year." One of them is received between the 20th and 25th of December. The other is paid in the month established by collective agreement or by agreement between the employer and the legal representatives of the workers. However, it usually coincides with the summer months and that is why it is known as summer extra pay. The approximate date is usually between June 25 and July 15 of each year. Surely everyone already knows this concept so we are not going to dwell on it much longer. So let's move on to review the more practical issues. How is the summer extra pay calculated? Professionals receive two payments a year and the amount of both is the same .
Therefore, to answer this question, which refers specifically to summer, we can rely on the generic explanation. That is, the extra pay can never be less than the equivalent of 30 days of the fixed base salary or the minimum interprofe Fax Lists ssional salary (SMI), which is currently 1,080 euros. When calculating the double summer pay, remember that it is subject to personal income tax (IRPF) , like the monthly payroll. What does it mean to prorate summer extra pay? This is something quite common that may occur in your company. In practice, it consists of receiving, each month of the year, an amount of the total amount of the extraordinary pay. In this case, the pay proration appears on the payroll as a concept in the accruals and does not affect the worker's annual gross salary. In fact, the only difference is that, with this modality, the total amount is concentrated in 12 payments and not 14. In the month of June, the worker does not receive extra summer pay as such, since he has been receiving the corresponding amount in each monthly payment. In any case, each company relies on the collective bargaining agreement and the agreement with the workers to decide whether to prorate or not pay them. How are prorated extra pay calculated? The formula is very simple. First, the amount of the extra pay is divided between the 12 months of the year and then, it is added to the monthly salary. We see it in an example: Is there a minimum time to collect summer extra pay? It is possible that someone who has been working at your company for less than a year will ask you if they are entitled to receive this bonus. The truth is that the double payments begin to be collected in full when you have already completed one year but before this period, the corresponding proportion is received.
This is the calculation that follows: Total amount = Full amount of extra pay x (period worked/total period for payment accrual). If you are in charge of preparing the extra summer pay, this is also of interest to you: There are some situations in which extra pay is initially suspended, such as when the employee has been on medical leave. But we say initially because the company's Collective Agreement may allow extraordinary bonuses to be collected as well. The dates of the double summer pay are variable and the Collective Agreements must be reviewed. Although an employee will receive, at least, 2 extra payments per year, including the summer payment, there are agreements or contracts that regulate up to 16 payments per year (12 months + 4 extras). Does extra summer pay increase performance? Sometimes we focus the debate on whether it is better to prorate extra pay or not but, beyond that, another interesting analysis arises that you can carry out in your company. It is clear that receiving an additional amount on your payroll is always good news and in summer, it can be a help to cover vacation expenses or increase savings. But do you think the extra summer pay motivates employees? What value does it have for them? Does it make them feel part of the company? There are more and more studies that defend the idea that motivation cannot be bought with salary alone, but when it comes to the extra summer pay, you can take advantage of this bonus to encourage your teams. We give you 3 ideas: Motivational reminder When the double pay date approaches, send an email to people to congratulate them for the work done during this first half of the year. But be careful, it is not an email to remind you that you are going to make the deposit but to reflect that this financial compensation gives meaning to your work.
Therefore, to answer this question, which refers specifically to summer, we can rely on the generic explanation. That is, the extra pay can never be less than the equivalent of 30 days of the fixed base salary or the minimum interprofe Fax Lists ssional salary (SMI), which is currently 1,080 euros. When calculating the double summer pay, remember that it is subject to personal income tax (IRPF) , like the monthly payroll. What does it mean to prorate summer extra pay? This is something quite common that may occur in your company. In practice, it consists of receiving, each month of the year, an amount of the total amount of the extraordinary pay. In this case, the pay proration appears on the payroll as a concept in the accruals and does not affect the worker's annual gross salary. In fact, the only difference is that, with this modality, the total amount is concentrated in 12 payments and not 14. In the month of June, the worker does not receive extra summer pay as such, since he has been receiving the corresponding amount in each monthly payment. In any case, each company relies on the collective bargaining agreement and the agreement with the workers to decide whether to prorate or not pay them. How are prorated extra pay calculated? The formula is very simple. First, the amount of the extra pay is divided between the 12 months of the year and then, it is added to the monthly salary. We see it in an example: Is there a minimum time to collect summer extra pay? It is possible that someone who has been working at your company for less than a year will ask you if they are entitled to receive this bonus. The truth is that the double payments begin to be collected in full when you have already completed one year but before this period, the corresponding proportion is received.
This is the calculation that follows: Total amount = Full amount of extra pay x (period worked/total period for payment accrual). If you are in charge of preparing the extra summer pay, this is also of interest to you: There are some situations in which extra pay is initially suspended, such as when the employee has been on medical leave. But we say initially because the company's Collective Agreement may allow extraordinary bonuses to be collected as well. The dates of the double summer pay are variable and the Collective Agreements must be reviewed. Although an employee will receive, at least, 2 extra payments per year, including the summer payment, there are agreements or contracts that regulate up to 16 payments per year (12 months + 4 extras). Does extra summer pay increase performance? Sometimes we focus the debate on whether it is better to prorate extra pay or not but, beyond that, another interesting analysis arises that you can carry out in your company. It is clear that receiving an additional amount on your payroll is always good news and in summer, it can be a help to cover vacation expenses or increase savings. But do you think the extra summer pay motivates employees? What value does it have for them? Does it make them feel part of the company? There are more and more studies that defend the idea that motivation cannot be bought with salary alone, but when it comes to the extra summer pay, you can take advantage of this bonus to encourage your teams. We give you 3 ideas: Motivational reminder When the double pay date approaches, send an email to people to congratulate them for the work done during this first half of the year. But be careful, it is not an email to remind you that you are going to make the deposit but to reflect that this financial compensation gives meaning to your work.