RAL, social security contributions, severance pay and other items that affect personnel costs

1 February 20231 year ago babelfish

A company must always deal with everything that can affect turnover and therefore have a clear idea of what the expenses are and what the earnings are. Based on this, and only this, will he be able to carefully weigh important decisions, including the possibility of hiring one or more employees .

The cost of employees , in fact, is not limited to the payment of a simple salary, but takes into consideration a very large number of variables and costs, both in the immediate and in the long term.

Even just the personnel search itself has a cost, whether you decide to rely on external temporary agencies or whether you have an internal HR department , which you therefore need to maintain.

Finally, once you have decided to hire the employee, you will need to take into account all the expenses that will affect his cost, both in the paycheck and as an extra.

The expenses that will be calculated in the paycheck

The paycheck that will be provided to the employee is not made up of a simple salary, as we have said, but will include the calculation of numerous other payments, whether they are state taxes or social security contributions .

Let's see what are the items that appear on the pay slip and which are part of the cost that the employer will have to bear to maintain an employee, first of all explaining what is meant by RAL.

RAL (gross annual salary)

Almost all the calculations that will be made to decree deductions and taxes will be made on a total annual salary, called precisely the RAL.

RAL is an acronym that stands for gross annual salary and, as its name suggests, specifies the amount of salary due to the employee in its entirety, including taxes, in a year.

Calculating the GAS is simple: just multiply the gross hourly wage by the number of weekly hours worked and then by the total number of weeks worked in a year (52).

However, it should be remembered that the GAS also includes any fourteenth and thirteenth salaries, if the contract provides for it, therefore these two options will be added to the total just obtained with the multiplication.

INPS and INAIL costs

INPS and INAIL are the first two costs that will affect the paycheck, being paid in part by this and in part by the employer himself. These are two different entities that require the obligation to pay the fee, thus being able to guarantee specific contributions :

INPS deals with illnesses, maternity, layoffs and pensions.
INAIL , on the other hand, deals with any accidents at work and occupational diseases.

Generally these contributions are equivalent to around 35% of the GAS but they can vary considerably according to the job, the type of contract or the amount of the GAS itself.

TFR (TFR)

This is a sum that is withheld from your paycheck each month and set aside . At the end of the employment relationship, this will then be returned to the worker in a lump sum, usually together with the last paycheck or the following month.

It usually corresponds to 13.5% of the GAS , but even in this case there may be slight variations based on the type of contract. Furthermore, at the end of each year, the severance indemnity may undergo some adjustments according to some parameters, to ensure that it does not vary over time perhaps due to inflation.

Until 2018 there was the possibility of requesting advance severance pay paid monthly , together with the salary within the pay slip itself, but today this option is no longer possible . However, the possibility remains for the worker to request, under certain reasons, the advance payment of the entire severance indemnity.

Thirteenth and fourteenth

Among the latest items that may appear in the pay slip and which will affect the total cost of the employee, there are also thirteenth and fourteenth.

The first is compulsory for all sectors and is paid in December, around the Christmas holidays. It corresponds to 1/12 of the RAL but it will hardly be equal to the monthly salary to which the worker is used to: this is because the thirteenth salary undergoes a slightly different taxation and, above all, does not enjoy some deductions.

The fourteenth , on the other hand, is not compulsory in all sectors, but only in some. It often corresponds to the real monthly salary, this is because it undergoes a different calculation: that is, the gross monthly salary is multiplied by the number of months actually worked over the previous 12, and then divided by 12.

Other personnel expenses

What we have mentioned so far are expenses that directly affect the paycheck, but having an employee involves many other additional costs:

Search and selection. As we have said, right from the start choosing to have an employee entails a cost. You have to rely on and pay an external agency that takes care of the search and selection, or have an internal HR department available.
Training. Even if the newly hired employee is already familiar with the job, no job is alike. Different tools and methodologies are used, for this reason whether the employee is a beginner or not, it is necessary to train him, which will require time, resources and therefore money.
Not all companies decide to rely on benefits, but it is a mentality that is slowly being lost, in the face of the real advantage that having them entails. The employee will feel more involved in the company dynamics and will work with more enthusiasm. The most commonly used benefits are meal vouchers , medical insurance , reimbursement of expenses , vending machines for coffee and snacks , etc.

Conclusions

Sooner or later all companies are faced with the need to hire one or more employees, but this decision should not be taken lightly and should be well thought out, perhaps preparing a budget immediately to draw on.

In fact, the cost of the employee is not limited to the simple salary, but there are many items in the pay slip that will affect both the real salary received by the worker (and therefore on what he can offer) and the company itself, which is required to support of expenses.

Among these, for example, there are severance pay, INPS, INAIL, thirteenth or fourteenth contributions. But the cost of an employee also includes all those expenses related to his hiring, training or maintenance, with the choice of benefits that the company itself decides to offer.

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The article RAL, social security contributions, severance pay and other items that affect personnel costs comes from Scenari Economici .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/ral-contributi-previdenziali-tfr-e-le-altre-voci-che-incidono-sul-costo-del-personale/ on Tue, 31 Jan 2023 14:01:01 +0000.