Currency failure – What is it, definition and concept | 2022

The currency loss consists of that non-salary bonus that covers possible imbalances or losses that a worker may cause. This, working as a limit to cut the employee’s salary.

In other words, an employee who has some responsibility in cash management or any asset of a highly circulating nature in the company, will be endowed with a bonus outside the salary called ‘currency loss’. This plus will serve as a limit to be deducted if at any time the worker and the company reflect a mismatch as a result of the normal activity of the employee.

These losses or imbalances will be of an involuntary nature and will be the result of the normal activity of the worker during his working day. Jobs such as bank or supermarket cashiers are usually the ones that frequently have this type of extra-salary supplements.

Currency Break Characteristics

It must be taken into account that the currency loss is linked to the nature of the work that is carried out. So, since it is not considered part of the normal salary, the worker should not fall into the false illusion of a salary higher than what he is actually receiving.

For this reason, one of the main characteristics of the currency loss is that it should not be used when calculating severance pay or unemployment and retirement benefits, since, again, it is not part of the worker’s normal salary.

On the other hand, this bonus is usually quoted (depending on the country), so it generates an additional cost to the employer. This is done to avoid inflating this type of bonus to the detriment of the main salary.

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In addition, the use by the company of this bonus to compensate for a mismatch caused by the worker must be demonstrated and can never exceed the bonus as long as the mismatch is involuntary and the result of the normal work of the employee.

Finally, it should be noted that, regardless of the day that is carried out, this bonus is usually set in the agreement that the group of workers has with the company, so their payment must be the same regardless of the average employee, or full time.

Currency loss usage example

In a town in northern Mexico, there is a supermarket where only 2 employees work. One of them is in charge of cashier tasks (payments and collections), and another of warehouse and product replenishment.

The employee who is dedicated to collecting customers at the register has a salary of $1,000 and a currency loss supplement of $50. A certain month there is an imbalance of $65.

What will happen to the cashier’s salary? What would have to happen then is the total discount of the supplement for that month ($50) and his salary should be the same ($1,000), even if the losses were greater than the supplement.

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