Although both parties agree to this payment system (on one hand, the company saves the cost of contributing for that excess salary and, on the other hand, the worker does not declare those amounts, saving on income tax), this way of acting carries significant risks.

The problem usually arises when the worker requests a benefit from Social Security and discovers that they only contribute based on the salary reflected in the payroll, so the amount they will receive from a temporary disability, a benefit for childbirth and childcare, unemployment, or a future pension will be lower than the salary they have been receiving.

In these cases, some workers go to the Labor Inspection to report the facts:

• The risk does not disappear with the worker's departure from the company. Contribution differences can be claimed for the last four years.

• The fact that the worker has accepted for years to receive part of the salary in cash does not prevent them from reporting it.

If the existence of amounts paid off the payroll is proven, the company must pay the corresponding Social Security contributions for those amounts.

On the other hand, the fact of not contributing for the entire salary paid is a serious offense, which the Inspection can sanction with an amount between 50 and 100% of the unpaid contributions, including surcharges, interest, and costs.

In short, incorporate all amounts into the payroll and contribute for them. Paying part of the salary "in black" can become a significant economic problem.

 

Our professionals will inform you about any questions you have regarding salaries.