Gross to Net Calculation Method

To determine the absorbable complement for a gross to net calculation, the system:

  1. Calculates the agreed monthly gross income based on the employee's gross guarantee.

    The system retrieves the agreed gross from the Target Compensation Rate field on the Job Data - Compensation page and calculates the daily value, taking into account the number of regular and extra periods. If the Target Compensation Rate field is blank, the system uses the value in the Annual Rate field on this page.

  2. Calculates the total daily value of the absorbable earnings specified for the employee on the Job Data - Compensation page.

    This calculation takes into account extra periods defined in the labor agreement and absences.

  3. Calculates the difference between the agreed daily gross amount calculated in step 1 and the monthly gross amount calculated in step 2.

    The system calculates the difference using the daily value for both amounts and then multiplies the difference by the number of days worked. This amount is stored in the absorbable complement earning COMP ABSRBLE.

Note: To specify that an employee's earnings must be adjusted gross to net, assign a supporting element override to variable GEN VR TIPO AJ SAL with a value of BRUTO.

Example

Assume that the employee has the salary details in the following table:

Salary detail

Values

Agreed annual income

40.334,00 EUR

Earnings defined in the labor agreement for the employee's professional category

Base salary: 750 EUR/month

Complement: 500 EUR/month

Extra periods (defined in the labor agreement)

Extra Period 1:

Earnings: Base salary and Complement

Earnings Pct: 100%

Pct if Salary Adjustment: 100%

Extra Period 2:

Earnings: Base salary and Complement

Earnings Pct: 100%

Pct if Salary Adjustment: 100%

To calculate the absorbable complement, the system:

  1. Calculates the agreed monthly income by dividing the annual value by the total number of payments in the year:

    40.334,00 ÷ 14 (12 months + 2 extra periods) = 2.881,00 EUR per month

  2. Determines the monthly income based on the labor agreement:

    Total monthly income per labor agreement: 750,00 + 500,00 = 1.250,00 EUR/month.

  3. Calculates the difference between the agreed monthly gross amount and the monthly gross amount according to the labor agreement:

    2.881,00 − 1.250,00 = 1.631,00 EUR per month

    This is the amount of the monthly adjustment or absorbable complement that the employee receives in addition to the base salary and annual complement stated in the labor agreement. This amount is calculated as Unit * Rate, where Unit is the number of worked days in the period. and Rate is the monthly amount divided by 30 for monthly employees or the number of days of the payment period for daily employees.

Note: The system always considers extra periods in the gross to net calculations to obtain the annual gross.