Wages


The National Insurance Institute pay the employee the wages to which he is entitled that have not been paid by the employer. The payment, for a maximum period of 12 months, may not be less than the minimum wage to which the employee is entitled under Minimum Wage Law and in accordance with the scope of working hours.

The employee's wage components that are taken into account in the wage payment:

  • Base salary
  • Overtime
  • Premium Commissions
  • Bonuses
  • Additional compensation for effort
  • Travel expenses
  • Departmental benefits and professional increase
  • A proof that these components were in fact paid to the employee is required.

Other wage components that appear in the slip will also be taken into account, given that they meet the definition of 'wage' in the Wage Protection Law.

The following wage components are not taken into account the wage payment:

  • Vehicle expense reimbursement
  • Phone
  • Subsistence
  • Sick leave redemption

The wage payment includes the following payments as well:

 

  • Back Pay – that has not been paid to the employee, up to the day of the employment termination, for the last year.
  • Vacation Day Redemption – payment for the number of vacation days left entitled to the employee, up to the day of the employment termination, as appears in the employee's last payslip, up to the maximum number of days allowed to accumulate under the Annual Leave Law.
  • Convalescence Payments – the part that has not been paid to the employee, up to the day of the employment termination, for the last two years.
  • Clothing Allowance – the part that has not been paid to the employee, up to the day of the employment termination, for the last year.
  • Thirteenth Month Payment – the part that has not been paid to the employee, up to the day of the employment termination, for the last year.