Understanding a payslip in Barcelona
Written by Talent Search People
Finding a job that is the right fit for you is never easy, especially since there are so many things to consider. One of those is the payroll; a fundamental aspect of any job. It reflects the salary you receive for hours worked. It is very important to have a good understanding of these things. For this reason, we are going to review, point by point, each element of the payslip.
table of contents
The base salary (Salario base)
Simply stated, this is the amount that the employee gets paid for the days of work.
Salary supplement (Plus convenio)
Aside from your base salary (Salario Base) there’s also other salary concepts. One of which is the salary supplement (Plus Convenio). These salary supplements can be on the basis of the employee’s experience, seniority, salary in kind, extra hours and other incentives, such as work performance.
Voluntary Improvements (mejora absorbible)
Another salary concept is the voluntary improvement (mejora absorbible). This entails the amount that the employee is can be offered to get paid in flexible compensation or in kind (see below). This also has to be made apparent on the payslip. The in-kind salary, however, cannot exceed 30% of the gross salary.
Payments in kind
If payments in kind are present, they cannot exceed 30% of total remuneration. They will be included in the payslip as items subject to payment of social security contributions. You must take into account the following:
The salary received in the annual computation can never be less than the minimum interprofessional salary in force each year (established in proportion to the working day you have). The company cannot reduce or give you a figure lower than the Minimum Interprofessional Wage (SMI). The special remuneration remains free of income tax (within certain limits).
Extra payments (paga extra prorrateada)
Another thing that might appear on one’s payslip is ‘extra payment’ (paga extra prorrateada). Extra payments are prorated in the monthly wage and are received in instalments throughout the month. Examples of extra payments are holiday pay and Christmas bonuses.
Lastly, there is ‘overtime’ (incentivos) that can be evident on the payslip. It is the amount one gets paid for the extra hours of work. Naturally, this will only be apparent on the payslip when the employee has worked overhours, therefore this is not a set part of the payslip.
These are the payments made by the employer to the Social Security in order to cover disability leave, future pension and unemployment insurance. These deductions can be divided in common contigencies, unemployment, fixed or unfixed duration of contract and professional training.
Another part of the deductions can be the payment in kind. As mentioned before, the deductions include the whole quantity of products received in the kind that appears in the accrual component. With flexible pay, an employee can allocate a portion of his salary to specific items and services provided by the company. As a result, its cost is deducted as part of the deduction.
It also includes the IRPF withholding, an advance payment of income tax, which is calculated before making the tax return (see below). The remaing amount of the salary is also known as the net salary (liquido total a percibir).
IRPF withholding percentage
The IRPF (Impuesto sobre la Renta de las Personas Físicas), which is the personal income tax.
Its withholding percentage is related to the salary. The withholding goes up if the salary goes up. It also varies in relation to the family situation of each employee. For this reason, it is important to inform your employer about any changes in your family situation, such as the birth of a child or relative you have to look after. The amount you will end up receiving will be less than the tax-free amount.
Now that you have a better understanding of the different things to keep in mind with regard to your payslip, it will hopefully be less of a hassle to find a job with working conditions that suit your needs and allow you to advance as a professional with ease.
About Talent Search People
Talent Search People is a recruitment and human resources agency located in Barcelona, Madrid and Lisbon.
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