What is the Christmas bonus?
The supplementary annual salary is regulated in the Labor Contract Law 20,744 in arts. 121 and 122 (text modified by Law 27,073). In them, the calculation method and the payment dates are established.
Regarding the first point, it is established that 50% of the highest monthly remuneration accrued for all concepts is calculated, in the semesters ending in June and December.
When is the Christmas bonus collected?
Regarding the payment terms, it establishes two dates: June 30 for the first installment and December 18 for the second.
They are fixed expiration dates and the guidelines of art. 128 payment terms, which distinguish between expiration period and payment period, enabling for monthly and biweekly remunerations a payment period of up to 4 business days after the expiration of the term.
It is not the case of the supplementary annual salary that has a fixed date established and therefore the maximum limit for its payment.
Any payment that is not made in advance or on the established dates violates current legislation.
There is in all cases a “grace” period of four days.
How the bonus is calculated?
The Labor Contract Law establishes that the bonus must be equivalent to 50% of the highest monthly remuneration accrued in all respects of each semester.
To calculate the first bonus, wages from January to June are taken into account. The calculation must include the basic salary, overtime and other bonuses that have been received.
Likewise, for the second installment of the bonus, salaries from July to December are taken into account.
In the event that a worker has not worked the entire semester, the formula to be used is: Christmas bonus multiplied by days worked, divided by 180 (the days of the semester).
What concepts are taken into account for the calculation of the bonus?
Workers must take into account the following points:
- Overtime and commissions must be added to the amount of salary for the month in which they were paid, in order to calculate the highest compensation earned.
- The item “On account of future increases” It must also be considered when calculating the SAC, since it integrates the monthly remuneration accrued.
- In the case of women, maternity leave should not be included as part of the bonus since the worker does not receive her salary, but a family allowance. Therefore, you only have to consider only the months worked in the semester before or after the license.
- The leaves without pay and social benefits are concepts excluded from the calculation, since although they are paid together with the remuneration, they are non-remunerative.
Does the bonus pay Income Tax?
It is important to know that the bonus does not pay since 2021 Income Tax, since it was exempted in the modification approved by Congress, in which the non-taxable minimum was also raised.
Source From: Ambito
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