Public Transportation and Distance Complement

The public transportation and distance complement is paid to employees to compensate for the distance between their residence and the company location. From December 2013 (RDL 16/2913) the entire amount paid as Public Transportation and Distance Complement contributes to Social Security. However, prior to Decemeber 2013, the maximum social security exempted was 20 percent of IPREM (Indicador Público de Renta de Efectos Multiples). Depending on whether the employee contributes to social security on a monthly or daily basis, the IPREM amount was calculated either monthly or daily.

Indicador Público de Renta de Efectos Multiples is a monthly or daily value established annually

Because the public transportation and distance complement is an employee-specific earning, you must assign it individually for each employee who qualifies.

Note:

There is an exception to daily employees and the transportation complement. Sometimes, the transportation complement is paid monthly, regardless of whether an employee contributes to Social Security on a monthly or daily basis. You can specify how the earning is calculated by assigning a daily or nondaily frequency on the Job Data - Compensation page. Frequencies other than daily generate monthly transportation complements. The TRANSPORTE earning is identified in the Custom Fields area with the value 1-TRNSPRTE.