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All employees are guaranteed a minimum monthly remuneration, the national
minimum wage, which is set annually by special legislation. In 2007 this figure
stood at EUR 403.00.
Monthly, daily and hourly wages are the most common systems of payment.
Commission is often paid for sales work. In addition to monthly wages there is
also a luncheon allowance, and travel allowances may also be payable. In the
private sector these allowances are included in multi-employer agreements.
Overtime and work on rest days may be compensated by statutory increases in pay
for the work carried out. In most cases the wages paid by employers are higher
than those provided for in the multi-employer agreements for sectors of
activity.
Remuneration must be paid at regular intervals which may be weekly,
fortnightly or monthly (the latter being the most common). It may be paid on the
basis of other periods of time, however, if specifically agreed.
Salaries or wages are usually paid by bank transfer, though some employers
still pay by cheque or cash. Irrespective of the form of payment, the employee
is entitled to a pay slip which shows the remuneration (gross pay, luncheon
allowance etc.), deductions (IRS – personal income tax, percentage of the wage
applied according to the employee’s marital status and number of dependants;
and the social security contribution, 11% of the gross wage). The employer is
responsible for transferring the amounts withheld to the social security and tax
authorities.
The employer gives the employee a declaration in January of the year following
the year to which the income relates. Employees need this for submitting their
annual tax return to the tax authorities.
Employees are entitled to a Christmas bonus, equal to one month's pay, which
must be paid by 15 December each year, and to holiday pay, corresponding to the
pay employees would receive if they were actually working. In addition to this,
employees are also entitled to a holiday bonus, the amount of which includes
basic pay and other payments representing consideration for the specific means
of carrying out the work.
Text last edited March 2008
Source: European Union
© European Communities, 1995-2009
Reproduction is authorised.
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