3 Main Differences between Salary Slips for Permanent and Non-Permanent Employees

 

3 Main Differences between Salary Slips for Permanent and Non-Permanent Employees

    As a profit-oriented company, of course, it has a number of employees who run their respective fields. Every employee who works is expected to make a certain contribution so that the company can continue to run and generate certain benefits. As an appreciation, the company provides a wage or salary in accordance with the contribution of each employee. The salary can be in the form of money or goods with a certain value, and details of the components of the salary received are also provided in the form of a salary slip .

    Salary slip is a document, both physical and digital file , which contains details of what the employees are entitled to in salary. The salary slip itself usually contains the amount of salary, additions and deductions, as well as company information and the date the salary slip is made. This is important to convey because employees have the right to know the details of the salary they receive, along with the additions and deductions in each salary given by the company.

    In practice, companies also have two types of employees, namely permanent and non-permanent employees. It turns out that the pay slips of these two types of employees have a slight difference when examined. The difference is in the deduction and addition to the salary received.

Retirement Discounts

    This deduction is only on the payroll of permanent employees. Why is that? Simply put, employees remain at the company for a relatively long time and at the end of their working period they will receive a pension amount . This money, whether it is received periodically or once, is the right of permanent employees as their appreciation for contributing to the company.

    On non-permanent employee salary slips , deductions related to pension funds usually do not exist because non-permanent employees only work based on the contract made. Temporary employees have short tenure and are usually not official members of the company. This causes temporary employees not to have a pension deduction because they do not work until their productive age is over at a certain company.

Positional allowance

    Temporary workers usually do not have managerial or decision-making positions. This is because these strategic positions must be held by permanent employees who have in-depth understanding and knowledge of the company. In addition, managerial and decision-making positions usually deal with sensitive data that are company secrets.

    Job allowances are more often found on salary slips for permanent employees who have certain positions in the company. Because non-permanent employees do not occupy such strategic positions, their salary slips do not contain additional job allowances.

Income Tax Deductions

    Tax deductions are an important variable that must be included in the payroll of permanent employees. This income tax deduction is usually taken directly from the employee's salary and deposited collectively by the company. The permanent employee then receives the details of the income tax deduction on his salary slip and is then obliged to report the withholding income as confirmation to the Director General of Taxes.

    For temporary employees, this income tax deduction is usually non-existent. Temporary employees must take care of their own income tax payments, which are their responsibility either online or manually to the Director General of Taxes.

    If we look closely, the salary slips for permanent employees and non-permanent employees are different. Permanent employees usually have more detail because there are quite a lot of cut-off and payoff variables. For temporary employees, pay slips are simpler, usually only containing basic salary, overtime pay, and deductions from late fees or the like.

Of course submitting a salary slip is the obligation of your company. Use payroll software to make it easier to manage this paycheck.

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