Training Contracts and Salary Regulations Explained

Types of Training and Internship Contracts

A training contract is one that allows young people without formal preparation to develop a trade or skilled job. Alternatively, if they already have training, it allows them to apply and refine their existing knowledge. There are two primary types of training contracts: the internship contract and the training and apprenticeship contract.

The Internship Contract

The aim of the internship contract (contract practices) is to provide gainful employment that enables the worker to apply and improve their knowledge, providing practical experience at the level of studies completed.

The Training and Apprenticeship Contract

The aim of the training and apprenticeship contract is for the worker to acquire the theoretical and practical training necessary to properly develop a trade or a qualified job.

Payroll and Social Security Standards

The salary consists of the total economic benefits which workers receive in cash or in kind for the professional provision of employment services for others. This applies whether it is compensation for actual work or for rest periods counted as work. In any case, wages in kind may not exceed 30% of the worker's total perceptions.

Minimum Wage and Salary Composition

The Minimum Wage (SMI) is the wage set by the government, according to Convention 117 of the ILO (International Labour Organization), as the basic pay for employees under terms set in Article 27.1 of the LET (Workers' Statute). No employee may receive remuneration below this amount. For example, in 2008, it was fixed at €600 per month across 14 annual payments.

The salary composition consists of:

• Base salary: Fixed remuneration per unit of time or work, determined by the minimum wage and collective conventions.
• Salary supplements: Amounts agreed upon in individual contracts and extraordinary supplements.

Extra Payments and Wage Guarantees

Workers are entitled to at least two extra payments per year. The amount shall be agreed upon in the collective agreement or by agreement between the employer and employee representatives. One is typically paid at Christmas and the other in a month agreed upon. If established in the convention, the amount may be apportioned monthly.

Regarding the guarantee of wages, unpaid salaries for workers have priority over other pending business debts. In the alternative, in case of insolvency, bankruptcy, or receivership of the employer, an agency of the Ministry of Labour and Social Affairs known as the Wage Guarantee Fund (FOGASA) guarantees workers the perception of outstanding salaries and severance pay upon the termination of the employment relationship.