Payroll payment deadline

Hello: Article 29 of the Workers’ Statute, referring to the settlement and payment of payroll, establishes that “The settlement and payment of wages shall be made punctually and in writing on the date and at the place agreed upon or in accordance with customs and practices”. It also establishes that the period of time for payment of salary amounts may not exceed one month.

If the applicable collective bargaining agreement of the sector does not provide otherwise, the maximum period for payment is one month from the day on which the work activity was performed. It is necessary to comply with the applicable standard and, failing that, with the uses and customs of the sector (generally contemplated in the collective bargaining agreements). As a general rule, the payroll is paid in the first five days corresponding to the month following the month in which it is due. That is to say, if you have worked from January 1 to 31, you should receive your salary from February 1 to 5.

The claim for the amount must necessarily be made, in a first step, by filing a conciliation paper at the mediation and conciliation services that correspond to you territorially. These services, which depend on each autonomous community, will proceed to summon you to a conciliation meeting with your company. If on the day of the conciliation you reach an agreement, for example because the company pays you or commits to pay you what you claim, a conciliation act is drawn up with an agreement between the parties with the commitment of the company to pay you and that is the end of everything.

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Payroll payment out of time

In different company processes, knowledge related to the parts of the payroll is applied; that is to say, it is important that you know what these components are that allow a better organization and completeness of the payroll.

One process in which this information becomes valuable is at the time of issuing your employees’ payroll payment slip. In this case you must check that the information is both organized and complete.

You must keep in mind that the payroll is an indispensable document, both for the company and for the labor relationship you have with your employees. It is delivered to each worker depending on the agreed payment period.

The payroll shows in detail the salary that each worker must receive and the deductions that he/she had in his/her salary, for each period worked. In general, deductions are mandatory in order to comply with current legislation.

The standardized payroll form is regulated by current legislation and has a minimum structure and content that must be respected in all cases. The minimum content of the payroll format is as follows.

At what time the payroll is paid

For the company it is, together with the receipt of the bank transfer, a proof of payment, since if the employee signs the payroll he/she is acknowledging having received it and being in agreement with the settlement contained therein.

Settlement period. To what period the payroll corresponds from date to date and, at the end, the total of days contributed, important data because the total days for which they contribute for the worker are going to determine, in almost all the cases, the rights that this worker has before the request of benefits to the Social Security and to the SEPEE (unemployment, maternity, retirement, disability, etc).

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Salary payments. These are the economic payments received by the worker (in cash or in kind) as remuneration for his work and for the rest periods computable as work (art. 26 of the Workers’ Statute).

In this case the difference between the agreed salary and that of the Agreement is considered absorbable, which means that the company is not obliged to apply the salary revisions (increases) made by the Collective Bargaining Agreements as long as the salary applied in annual computation is higher than that of the agreement (unless otherwise agreed with the worker).

Salary payment dates

Payrolls are a basic document for any business that employs workers. In previous posts we have already told you how to read and understand your payroll as an employee, today we go to the other side and tell you everything you need to know to create a payroll step by step.

Normally companies have a person or an entire department whose function is exclusively to calculate and make the payroll of all workers, but if you are an entrepreneur who has just started your business and you must do all this work yourself, pay attention to the key concepts that we present below to calculate and create the payroll of your employees.

Although you surely already know what a payroll consists of, it never hurts to review the basic concepts. The payroll is the document that employees receive from the company each month and which specifies the salary they have received that month for the work performed or their salary compensation.

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But the payroll is much more than that, it is an invoice in which the relationship between company and employee is reflected and in which very important data appear to take into account for the employee as the contribution of the worker to the Social Security or the IRPF retention that is applied to him.

By Rachel Robison

Rachel Robison is a blogger who collects information on court filings and notices.