When looking for a job, it is common for the employer to do so in gross terms, i.e. before discounts. However, workers are more interested in knowing what net salary or pocket money.
In practice, the difference between gross and net is that the former is the gross salary; while the second is the salary after the discount, added to the concepts on which no reduction corresponds, such as the per diem or other equal negotiations, they explain in Gi Group, temporary work consultancy.
Gross salary is the measure of the value of work, so when you make calculations like the Christmas bonuses, holidays or salaries must always be taken at their gross value.
GI Group has put together 5 keys to consider when distinguishing between gross and net salary:
1. The first month may not be charged in full.
Once the proposal is accepted and the entry mechanisms are activated, this is likely to be the case the start of the activities requires a few more days than expected. This means that if one is moving from one job to another there may be a few days off without pay. Unless entered on the first day of the month, the person will receive the amount pro rata to how long they worked.
2. Basic discounts
Depending on the contract the person is tied to at work, you can have different legal discounts, but there are three with which you will reach: 3% of the Social Assistance, 3% of the law 19.032 which finances the PAMI and 11% of the Pension. This is on the gross we already have to calculate a 17% less. Only in the case of retired personnel is the discount for social assistance and PAMI exempt.
3. Additional contributions according to the Convention
Depending on the activity, there may be additional discounts. For example, in Comercio de Capital Federal there are two further discounts: the solidarity quota of 2% of the Union of Commerce of Capital and 0.5% of FAECYS, the federation that brings together the various trade unions of the branch. “It’s not the only activity that has a solidarity fee, so it’s essential to know if our proposal is Outside the Convention or in which one we are inserted. Many times, given the lack of details, it is advisable to take an extra 3% discount for any other concept that is added to the Agreement”, says Dante Malaspina, Human Resources analyst at Gi Group.
4. Social work for partial work
A little-known fact, and which many companies refrain from communicating at the time of the offer, is the additional contribution for part-time work. The Employment Contract Act governing employment in the private sector was amended in 2008 by Act 26.474. The latter establishes it part-time staff must contribute at least the same amount as their full-time equivalent. This means that the full-time to part-time calculation is not a simple halving or corresponding proportion.
5. Income tax
The base salary from which gross earnings are paid is currently $404,062, a value that was adjusted in January and is expected to rise to $506,033 in May. Then, there are discount scales as salary increases, with a maximum ceiling of 35%.
Source: Clarin
