Salary would be the consideration, whether monetary or in kind, that a specific worker receives for the provision of their services.

Intervening agents

3 agents mainly intervene:

• The employer: is the person in charge of paying the agreed salary to the worker.

• The employee: also called worker is the part of the employment relationship that provides a specific service and who will be remunerated with the salary.

• The contract: the contract is the agreement that binds both subjects, employer and employee. In the contract is where the tasks that the employee will perform, the time, the schedule, the salary they will receive in exchange… are established.

Legal Regulation and Minimum Wage

Companies cannot freely set the salary of their workers, as there is legal regulation in this regard to ensure that everyone receives fair compensation (as fair as possible).

There is extensive legislation in this regard, from the Spanish Constitution itself which recognizes the right to receive sufficient remuneration in exchange for work, to the Workers’ Statute, where labor relations are more extensively developed.

On the other hand, in Spain there is the concept of SMI (Interprofessional Minimum Wage), which is the minimum legal salary that an employee can earn for performing a job. It is published annually in the Official State Gazette and for the year 2017 it has been established for a full day at 23.59 euros/day and 707.70 euros/month, in addition to 2 extraordinary payments. If divided into 12 payments, without extras, the minimum monthly salary is 825.65 euros/month. If the working day is shorter, it would be prorated.

Payroll

The payroll is the document used to justify the actual payment of salary.

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We hope this information is very useful to you.