In the historical period known as the Middle Ages, guild masters had the custom of hiring people to work in their workshops. These people who were hired were paid by the day; this is known in the French language as Jorurée, and it is from this French term that the current words "jornaleros" ( day) and "jornaleros" (day laborers) are derived , which can be said in simple terms that they are those people who work for the payment of a day.
What is a wage?
The term "jornal" can be understood as the salary that a worker receives in exchange for a day of activities or work; otherwise, it can also be interpreted as the work that an operator performs for each day.
Therefore, we can say that the daily wage is one of the forms of remuneration for the work of a hired person; however, this term has been displaced by other terms of much more common use such as: salary, wage, remuneration, allowance, stipend, or fees, among others.
Daily wages significantly exacerbate the drawbacks of traditional salaries, as they deprive workers of any incentive to improve their performance. They also demand constant supervision, which is costly and often yields minimal results. Furthermore, when workers share common responsibilities, their effort is regulated by those who are less diligent, leading to laziness, poor attitude, and substandard work. This occurs because everyone receives the same pay, thus eliminating motivation to perform tasks better. Instead, employees simply fulfill the minimum requirements. It is because of this that what is called piecework (which is a type of contract in which the employee is paid based on the work performed, rather than on the time spent), is a replacement that has a great advantage over the daily wage in many cases.
Now let's define a day laborer; another term that can be used as a synonym is peon . It is a person who has been hired to work in exchange for a day's wage, or in other words, payment for a day's work. It is also often used more broadly as a term that applies to agricultural workers who do not own land.
However, by extension of what the term "jornalero" implies, it can also be applied to agricultural workers who do not own land, that is, those who do not work on their own property. The figure of the jornalero is also closely linked to the large estates located in southern Spain, and especially in Andalusia. In some Andalusian regions, the day laborers hired during the planting season, or "gañanía," are called "gañanes."
The wage and the minimum interprofessional salary
Within Spain, the minimum interprofessional wage (SMI) is the legally mandated minimum salary that a worker can receive, regardless of their profession. This SMI can be expressed in various ways, all based on monetary units: per day, per month, or per year of work. The SMI is published annually in the Official State Gazette (BOE).
In order to establish the minimum wage for each year, the Consumer Price Index (CPI), average national productivity, the increase in labor's share of national income, and the overall economic situation must all be considered. This minimum wage may be adjusted every six months if there are variations in the CPI's budget.
The following are examples of how the daily wage has behaved in recent years . For 2013, it was set by Royal Decree 1717/2012, dated December 28, at €21,51 per day and €645,30 per month, in addition to two extra payments. If these payments are divided into 12 installments, each corresponding to a month of the year, without extra payments, the resulting monthly minimum wage amounts to €752,85. This calculated amount refers to the gross salary, which corresponds to what is considered full-time work (which, in Spain, in the vast majority of jobs, means 40 hours of work per week; if this is divided to create a schedule in which all working days of the week have the same number of hours, it corresponds to 8 hours per day). In the vast majority of cases, if for any reason a shorter workday is performed, a fee or the proportional part corresponding to the time worked will be received.
Depending on the employee's professional category and any applicable company agreements, this amount may be increased or decreased, particularly in cases where the employee is in certain training programs. Labor relations and specific details are outlined in the Workers' Statute.
In December 2011, something very unusual happened: Mariano Rajoy's government froze the minimum wage. This is important to highlight because it was the first time this had occurred since the minimum wage was implemented. In 2012, the People's Party government did the same, again freezing the minimum wage. This same situation arose again in 2014, with the minimum wage remaining frozen at €645,30 per month. As previously mentioned, by law, a contract must include two extra payments. Therefore, when adding the prorated amounts for each month, the net Spanish minimum wage, that is, after taxes, would be approximately €752,85 per month.
Now let's address the implications of journal entries in accounting . Within the classification of special journal entries, there are four types: the first is a sales journal entry, the second is a cash receipts journal entry, the third is a purchases journal entry, and the last is a cash payments journal entry. Companies that use one or more of these journal entries record the transactions. In cases where the journal entry does not belong to any of the four special journal entry types, the transaction will be recorded in the general journal entry, since this can accommodate virtually any type of transaction. This division exists because it establishes a single format to accommodate the specific types of transactions it contains.
Each time a company makes a cash payment, a record of the transaction is posted to the cash payments journal for tracking purposes. This journal includes all payments made by check, cash, and various types of electronic payments where the money is transferred immediately to the employee. In accounting, every cash payment is recorded in the cash account. This is because cash is an asset account, and all asset accounts have a normal debit balance. This balance represents the money the company has on hand immediately; therefore, items such as outstanding balances or accounts payable are not included in these figures.
To better manage payroll , all transactions for a given month are recorded, and then the corresponding payroll columns are totaled. After this, the total debits and credits should equal each other. If they do not, it indicates an error or mistake during the process. Once the totals are complete and verified, each column total is entered into the general ledger, which is a record of all the company's accounts and balances. These steps are performed to ensure the company has better organized accounts related to payroll payments.
The forms of payment that companies can choose
Companies can choose to renumber their employees in different ways. In addition, some of them have their tax advantages for both the worker and the company. It must be borne in mind that each country can pay in different ways, and although there has been talk of the minimum wage in Spain, there are countries in which that minimum wage does not exist. As each country is governed independently, different forms of business arise, as well as different rights to its workers. Beyond the functions that a worker can offer to the company they work for, each company depending on the sector, the way in which it carries out its activity, and the country to which it belongs, can pay their wages differently.
To do this, we are going to look at some of the different ways in which this salary can be paid.
Offering shares of the company itself
It's a fairly common practice in English-speaking countries , but in Spain it's still very uncommon. This form of compensation serves several purposes. On the one hand, if the shares are offered free of charge or at a price below market value, the employee can avoid paying taxes as long as the total value does not exceed €12.000 per year.
Another advantage of this way of remunerating workers is to align their interests with those of the company. This logic lies in the fact that the better the company works, the more the shares will be worth, because the owners are the main stakeholders in the company performing well.
Paying restaurant tickets
This form of payment is already much more widespread in the whole of Spain. They are a type of payment card or coupons that can be used in hospitality shops and restaurants that accept them (there are usually many already).
For the employee, the first €11 received per day, on working days, are exempt from income tax withholding. The company benefits from being exempt from corporate income tax.
With company pension plans
These are contributions made by companies to employee benefits products, one of which is pension plans. They offer a double tax advantage. For companies, these contributions are deductible from corporate income tax. Meanwhile, employees can deduct all contributions to pension plans up to a maximum of €8.000, with a limit of 30% of their income.
Transport
It is a way in which the company can pay for the displacement of its employees and they benefit by not having to pay it. The worker will not have to pay taxes for them up to a maximum of € 1.500 per year and € 136'36 monthly.
We could also include here that the company offers a company vehicle, in which case it will be exempt from paying 20% of the value of the new vehicle.
Health Insurance
This is a fairly common practice among large companies. Both employees and the self-employed can deduct the first €500 per year if they take out health insurance. As an added benefit, employee liability insurance and workplace accident insurance are also exempt from income tax.
Daycare checks
One of the most popular options for families with children is childcare vouchers. These vouchers are used to pay for the expenses of children aged 0 to 3 who attend nurseries and childcare centers. Similar to restaurant vouchers, they are exempt from income tax , and there is no monthly or annual limit on their use.
Courses and training
The dual advantage of paying for courses and training for both the employee and the company lies in their respective interests. On the one hand, the employee will receive this training, relevant to their field of work, free of charge. On the other hand, the company benefits from having better-trained employees in their respective areas.