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You pay extra: this is all you need to know

2019

Extra payments. They are possibly two of the words that cause the most happiness in a worker’s life. Or, rather, in those of the employees who charge them at the end of certain months. Others have them prorated and do not see an extra euro when they arrive on dates as marked as Christmas or summer vacations . Why this difference? Are they a mandatory payment of companies? Should you have extra or better prorated payments? These doubts, which arise for many Spaniards, are answered below.

Are extra payments mandatory?

According to article 31 of the Workers’ Statute, the employee “has the right to two extraordinary bonuses per year , one of them on the occasion of the Christmas holidays”, the other is set by agreement or by agreement with the employer. The article adds that “it may be agreed in a collective agreement that extraordinary bonuses be prorated in the twelve monthly installments.” That is, the money that corresponds to the extra payments is distributed. That is why some Spaniards have and others do not.

extra payments

The amount of extra payments is usually one month of base salary, although there are occasions that a bonus is added. Similarly, the amount may be fixed. This depends on the agreement governing the company. The aforementioned article states that “the amount of bonuses will be fixed by collective agreement.”

At the time of signing the contract there are companies that offer their employees the possibility of charging 14 payments, with the two extras, or 12. What usually happens is that when you accept a job the money they offer is the one you are going to charge in Total gross throughout the year. So what you have to calculate is what suits you best . If, for example, your contract includes that you will be paid a total of 24,000 euros gross, what you should consider is if you prefer to charge 2,000 euros gross per month in 12 payments or monthly payments of 1,714, and twice a year charge double. There are collective agreements that collect the payment of three extra payments instead of two . In this case, to the traditional ones of December and summer, one is added in March or September.

Extra payments are a good way to save , as long as you pass them from your checking account to a savings account as soon as you charge them. They are also the solution to face a season of many expenses such as Christmas, or treat yourself a summer and go on vacation. However, taking into account the state of wages currently in Spain, there are many workers who prefer to be prorated to be able to arrive at the end of the month with money in the bank. What you have to consult is if your collective agreement allows this practice, since the employer cannot decide it unilaterally.

There are occasions that unexpected expenses arise that even with extra payments are impossible to face at the moment. In these situations you can request a loan in Currency Now and have the amount you need directly in your bank account.

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