The roster It is the document that details both the agreed salary and the ddeductions applied to the Treasury and Social Security. In addition, it serves as proof that the worker has received his salary and that the corresponding Social Security payments and Personal Income Tax withholdings have been made. To ensure that the payment is correct, it is essential review two key aspects, which are the contribution group and seniority.
To verify this, it must be taken into account that, although most payrolls have different designs, they must all conform to a model established in accordance with the provisions of Order ESS/2098/2014 (consultable in this Official State Gazette) and in compliance of article 104.2 of the General Social Security Law. This means that the payroll must follow a specific format that necessarily includes a series of concepts.
In this way, all workers can understand how a payroll works regardless of the company they work for, since the concepts will always be the same. Now, these are the two concepts to review in a payroll.
Quote Group
He contribution group, indicated as “GC” or “Rate” on the payroll, indicates the professional category of the workerdefined according to the corresponding collective agreement. This information is essential, since each category is assigned a minimum salary and contribution bases that impact both the monthly salary and future rights, such as the retirement pension. The contribution groups, ordered from highest to lowest, are as follows:
- Engineers and graduates
- Technical engineers and qualified assistants
- Administrative and workshop heads
- Unqualified helpers
- Administrative officers
- Subalterns
- Administrative assistants
- First, second and third officers
- Pawns
- Workers under 18 years of age, regardless of their category
Ensuring that the contribution group is correct ensures that the salary and contributions are in line with the minimum established for the position, avoiding salary losses or inadequate quotes. For example, if a worker carries out a professional activity above his contribution group, although this is not reflected in his salary, it could negatively affect the future, such as the amount of his retirement pension, since he would be contributing for a base lower than expected.
Seniority in the company
Seniority influences the calculation of a possible severance payment and the increase in base salarystipulated in the collective agreement. Generally, the greater the seniority, the higher the base salary, something that directly impacts payroll.
Difference between gross and net salary
In addition to these two important concepts in payroll that we must review often, it is important to understand other concepts, such as the difference between gross salary and net salary. He gross salary It will always be greater than the net, since it represents the total amount that an employee earns and that appears on his or her payroll before applying the corresponding withholdings and contributions. That is, the gross salary is the sum of the base salary plus the supplements. In collective agreements and salary tables, each worker’s salary is specified in terms of gross salary, not net salary.
On the other hand, the net salary It is the exact amount that the worker receives as compensation for his services, after deducting Social Security contributions and Personal Income Tax (IRPF) withholdings. In other words, it is the real money available to the worker after meeting their tax and contribution obligations.
How to understand a payroll
For any worker it is necessary to know how to read and understand their payroll to verify that what the company is paying them is correct. In the following list you can briefly consult each concept:
- Base salary: represents the minimum remuneration that the worker receives for his services. This amount cannot be less than that established by the collective agreement for the worker’s group or professional category, which must appear indicated on the payroll.
- Antique: This supplement increases the salary as the years pass in the company. It is calculated as a percentage of the base salary and is applied after a certain period, as specified in the collective agreement. The payroll does not always include the start date of the contract, so it must be reviewed.
- Salary concepts: The payroll may include several additional salary concepts, such as supplements for productivity, responsibility, night shifts, among others. These concepts may vary depending on company policy. In some cases, although in theory the salary has been increased, the net amount received may not change due to changes in these concepts.
- Payments in kind: Some employees receive part of their salary in the form of non-monetary benefits, such as food or transportation checks. These payments in kind cannot exceed 30% of the total remuneration and, although they are additional benefits, the cash salary that the worker receives annually can never be less than the current Minimum Interprofessional Wage (SMI).
- Deductions: These are the amounts that are subtracted from the gross salary to cover Social Security contributions and IRPF (Personal Income Tax). These deductions finance rights such as pension, unemployment insurance and disability benefits.
- Retention percentage: Personal income tax is calculated based on the worker’s salary and family situation. It is important to communicate any personal changes, such as marriage or the birth of children, to adjust withholding correctly.
- Annual gross salary: is the total income before deductions in a year and is calculated from the contribution base indicated on the payroll. This information allows you to verify that the agreed annual salary complies with what is established in the contract or agreement.