Non-wage supplements – What is it, definition and concept | 2022

Non-salary supplements are those remunerations that are not part of the employee’s salary, and that he receives as compensation for expenses that he has had to make with his own resources.

In other words, non-wage supplements are payments received by the worker in addition to their remuneration. This, to compensate certain disbursements that the employee had to cover with her personal assets.

Non-salary supplements can be applied, for example, for transport or food expenses that have had to be made, of course, always for work reasons.

We must not confuse non-salary supplements with salary supplements. The latter are added to the worker’s base salary, but not as compensation, but due to particular circumstances or characteristics of the employee, the job itself, or the company.

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For example, a night job, by its very nature, contemplates a salary supplement for the employee. This, due to the schedule in which he must carry out his duties.

However, a non-salary supplement is basically a consideration for an outlay that the employee had to make, for example, if he had to travel several kilometers to complete a job.

Types of non-wage supplements

Some types of non-salary supplements are:

  • Travel diets: The employee receives compensation for room and board expenses. That is, for food and other necessary expenses that the worker had to incur in the context of a work trip.
  • Redundancy payment: It is a compensation that is made to the employee when he is removed from his job. It may not apply when there is an objective justification to support such decision.
  • Transportation or distance bonuses: The company compensates the employee for disbursements that he has had to make to travel in order to carry out his work. This during the working day. For example, if a journalist has had to travel to the other side of the city to do an important interview.
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An example of a non-salary supplement could be the following: A reporter has been appointed to cover a relevant news item and is sent on a trip to a city other than the one in which he resides.

During the work trip, the journalist had to spend on food and accommodation, since he stayed two days covering the news. For all these expenses, he requested the respective invoices. Thus, upon returning from the trip, he presented these receipts to his employer so that he could be reimbursed for what was spent.

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