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Payment clause

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What is a payment clause?

A payment clause is a provision that forms part of an employment contract that establishes the conditions and details related to the employee’s compensation.

It can include various aspects, such as the employee’s base salary, any additional incentives or bonuses that may be received, the benefits and benefits offered, the method and frequency of payment, and any other forms of compensation that may be agreed upon.

Could be:

  • Fixed: determines a base salary that the worker receives regardless of their performance and/or results of the company. It must be equal to or higher than the minimum interprofessional salary (MIS) and that established by the applicable collective agreement. In the year 2023, in Spain, the MIS amounts to 1,080 euros per month, fragmented into 14 annual payments.
  • Variable: determines a complementary salary (incentives, commissions…) that the worker will receive based on their performance and/or results of the company. It is not typified by law, so the amount that will be received depending on the variable will depend on what has been stipulated in the applicable collective agreements.

Essential content

  • Salary amount
  • Payment method
  • Payment term

In which contracts is it usually applied?

The remuneration clause is used in all types of contracts where there is an economic consideration. At LexDoka we have several models:

Limitations

  • It must be agreed in writing in the employment contract and cannot be modified, in principle, by either party. In addition, by virtue of the fixed remuneration, it is essential that the limits that it entails, mentioned above, are respected, in addition to what is stipulated in the Workers’ Statute.

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