What is the liquid salary

Understand what the take-home salary is

To know what is the liquid salary, first of all, we must understand the definition of the concept of salary. The The salary is established as the total of the economic perceptions that the employees receive as consideration for their services.. This is also usually provided during rest periods that can be counted as work, in cash or in kind. According to the legislation, the salary provided in kind, without any reason, can exceed 30% of the worker's salary. The computable rest periods for work are:

• Weekly rest and holidays.
• Annual holiday.
• Rest, no less than 15 minutes, on an agreed day.
• 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 established through collective bargaining or, through an individual contract. This structure should include the following:

• The base salary. It is the part of worker's compensation defined by unit of time or work. Its amount is defined for each and every one of the categories of collective agreements.
• Salary supplements. Complements that may be regulated in the laws or in the collective agreements.
  • Personal accessories;
    • Special knowledge.
    • Antiquity
  • Work accessories; toxicity, shift work, nocturnal hazard.
  • Complements for quality or quantity of work.
  • Extraordinary hours. These may be paid if a quantification of them is agreed, but it may never be less than the value of ordinary time. However, it should be noted that they may be compensated with similar paid time off.

There is also the salary in kind, this salary is made up of 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. As an example, when a company provides a car after hours, it will be considered salary in kind. In this case, if we want to know the value of said salary, we only have to pay attention to the proportion of hours the car was used outside of working hours.

That is not salary

Salary is not contemplated to all those amounts that the worker receives as compensation or supplies for 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 incurred by the worker during or for their work activity such as work clothes, travel meals.
• Compensation for 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 layoffs.

Now, a very common question for when talking about payroll and workers compensation systems, there is the question of whether salary and salary mean the same thing.

They are salary and salary the same?

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

The salary is the economic amount that an employee receives as consideration for his quantified services on a daily or hourly basis. Namely, salary is established per unit of time. We refer to the fact that a person has a salary when he 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; an amount established without variation that is always received the same in the agreed time.

Now understanding the basic concepts to know about salary and what it is composed of, it is important to consider that there are two different ways to appreciate a salary. These two points of view are the gross salary and the net salary.

Net income

It is the total remuneration 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 income

Also called pocket salary, it is the amount that in conclusion goes to the worker's pocket taking into account that it does not count bonuses, that the reductions of the legislation are discounted, discounting the income withholding, they are discounted to the social and the corresponding contributions to The retirement. / 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 an employee's gross salary are used for the following concepts:

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

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