When is the Christmas bonus paid?
The bonus payments are legally regulated, both in terms of the amount and the deadlines. Below, we analyse when is the Christmas bonus paid and the rest of the salary payments are paid.
What are bonus payments
Extra pay, or bonus payments, are additional remuneration that a worker receives on top of his or her regular salary. In many countries, it is common for workers to receive two extra payments per year, usually on special dates such as Christmas and summer. These payments are intended to help workers cope with additional expenses that arise at certain times of the year.
It is essential to understand that although they are extras, they are part of the agreed annual salary, although they are distributed differently to give the employee a financial bonus at specific times. The amount of the bonus will depend on the employment agreement and, in many cases, corresponds to a full month’s salary.
When can bonus payments be prorated?
Prorating a bonus means spreading the bonus over several pay periods, usually over the 12 months of the year, instead of paying it in a single payment (or two) on specific dates. By pro-rating, the employee receives a fraction of the bonus along with his or her monthly salary.
- The decision to pro-rate bonus payments depends on several factors:
- Legislation: In Spain, labour legislation allows proration if there is agreement between the employer and the employee. Collective agreements: In certain sectors, collective or trade union agreements may lay down specific rules on the proration of overtime payments. These agreements may allow it, prohibit it or set specific conditions.
- Agreement between the parties: In many cases, if the law and the collective agreement allow it, proration can be done if there is a mutual agreement between the employer and the employee. It is advisable that this agreement is documented in writing to avoid misunderstandings.
In Spain, in general, an extra pay can be prorated if there are no obstacles in the collective agreements and there is an agreement between the employer and the employee.
When is the Christmas bonus and the summer bonus paid?
Christmas bonuses are paid in specific periods, however, the exact date on which they are paid may vary depending on the country, the applicable collective agreement or the particular agreement between the employer and the employee.
- Christmas bonus: This is usually paid before 22 December, the date of the Christmas lottery draw, although many companies pay it in the first half of December.
- Summer bonus: This is generally paid in June or July, depending on the collective agreement or company agreement.
It is important to note that these dates may not be fixed and will depend on the sector, the company and other factors. As noted above, some companies, for example, may have agreed to pro-rate these payments, spreading the amount over the whole year in monthly salaries.
In order to be certain about when extra pay is paid in a particular case, it is advisable to check the employment contract, the applicable collective bargaining agreement or consult with the company’s human resources department.
How much extra pay do I get?
The total amount of bonus payments varies depending on the employment contract, the employee’s salary, the applicable collective bargaining agreement and labour regulations, however, it is possible to estimate the amount of bonus payments on average:
- Basic calculation: In general, the extra pay is usually equivalent to one month’s salary, i.e. if an employee has a basic salary of €1,000 per month, his extra pay would be €1,000. Therefore, he/she would receive two extra payments per year, totalling an additional €2,000 to his/her annual salary.
- Inclusions and exclusions: Some salary items, such as job or personal allowances, may be included in the calculation of the extra pay, while others, such as overtime, may not be considered, depending on the collective agreement or employment contract.
- Pro-rata: If overtime payments are pro-rata, the value that would correspond to the extra pay is distributed over the twelve months of the year. Following the example above, if a worker receives €1,000 per month and has the payments pro-rated, instead of receiving an additional €1,000 in June and December, he/she would receive an additional €166.67 each month (€1,000 divided by 6 months, taking into account the two extra payments).
- Part-time workers or workers with temporary contracts: The amount to be received in extra payments will be adjusted proportionally according to the hours worked or the period contracted.
In any case, the total amount of the bonus payments will vary according to the contractual clauses.
If you need a financial and tax advisor for your company, at Asesoría Orihuela Costa we offer you the experience of a team specialised in labour management. We are at your disposal to help you resolve any circumstance related to the salary of your employees.
