PERSONAL FINANCE MANAGEMENT

Learn how to calculate your work settlement

Set a value estimated on the settlement of the monthly payroll, social benefits, and to have clarity about the rights and duties, is something that every worker should know by the time you finish a work contract and, if possible, throughout the duration of the same. In this short article we will show you everything you need to take into account when calculating your salary.

Key terms to calculate your settlement properly

First, let’s clarify some terms to keep you informed, according to the substantive labor code:

Worker

It is the natural person who is in charge of providing a service to another in exchange for a remuneration either in salary or in kind. The latter, also called the employer, is the one who has the power to impose orders and regulations on the worker during the period of the contract.

Employer

It is the natural or legal person (entity) to whom the service is provided, and who is obliged to pay the worker for the provision of his service.

Fixed-term and indefinite contract

These contracts are usually the most common, in the case of fixed-term contracts they can be renewed indefinitely and have a duration between 1 and 3 years, while fixed-term contracts are characterized by having an indefinite duration depending on the work or work contracted and is maintained until the causes that gave rise to it are extinguished, moreover it is not a repeated and permanent work.

If the employee wishes to terminate the contract, he or she may do so by written notice not less than thirty (30) days in advance for the employer to replace him or her.

Contract for the provision of services

As the name implies, it is a natural person who takes the name of independent who is responsible for providing the service to another natural or legal person at a fixed price or fee. It is characterized by being autonomous in nature, i.e. the contractor providing the service is not governed by the orders of an employer because he already knows what the service is to be provided even if there is coordination between the two parties.

Contract for work or work

In this type of contracts the duration is defined at the beginning of the contract depending on the estimated time of the work; and they differ from the contracts with indefinite term in that their duration as the name implies is indefinite.

Full Salary

Workers with full wages, i.e. earning more than 10 current minimum monthly wages or SMMLV ($8,281,160) plus the benefit factor (30% of the salary received) that applies only for this type of wages.

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