Basic Earnings in Spain

In PeopleSoft Global Payroll for Spain, earnings are classified in two ways: basic and nonbasic. Whether an earning is considered basic or nonbasic depends on its frequency and whether it's a fixed amount or a variable amount.

Basic earnings are:

• Paid every month.

• Included in the employee's annual income at the beginning of the year.

• A fixed amount each period (fixed earnings).

Basic earnings include:

• Base salary.

• Seniority.

• Prorated extra periods established by the labor agreement.

• Complements, such as languages, degrees, mejora voluntaria, complemento absorbible, and public transportation.

Any other delivered earning is considered a nonbasic earning in PeopleSoft Global Payroll for Spain.

Note:

The basic earnings discussed here are only the ones that PeopleSoft Global Payroll for Spain delivers as sample data. They are the most common basic earnings required in Spain.

You can also create your own earnings and modify the calculation rules to fit your company's needs. To create your own earnings, use the Earnings component (GP_EARNING).