May 1st Bonus in Payslip: What is it and who is entitled to it?
May 1st: Understanding Pay Bonuses and Holiday Compensation
As May 1st approaches, a pay bonus is expected in payslips, but it is only aimed at those who are working on that day.
Since it’s a holiday, workers are entitled to an increase that enhances the paycheck.
For those not working, the standard holiday pay rules apply.
Since it is a regularly enjoyed holiday, they are entitled to the same salary they would have received on a normal working day.
A different scenario unfolds when May 1st – the day of the Feast of Workers – falls on a Sunday.
In this case, there are special regulations in place for uncelebrated holidays.
Specifically, when a holiday coincides with a Sunday, a day of rest for most employees, an extra working day is added to the payslip, resulting in a salary increase.
However, since May 1st falls on a Wednesday this year, it’s an opportunity to enjoy a well-deserved rest day without worrying about the paycheck.
Rather than focusing on missed pay increases, it’s advisable to spend the day with loved ones to recharge for the return to work.
Special Pay Bonuses for Workers on May 1st
As observed during April 25th, employees working on May 1st will receive a pay bonus.
For instance, employees in the hospitality or retail sectors (supermarkets, shopping malls, and most stores expected to remain open) will benefit from increased customer flow and, consequently, will be entitled to a pay bonus, the amount of which varies based on the relevant collective agreement.
Those working on May 1st will receive a pay bonus according to the terms of the collective agreement if agreed upon with the employer.
The law delegates to collective bargaining the task of quantifying the increase to be granted to those working on a holiday.
For example, in the retail sector, holiday work is usually compensated with a 30% increase on the base salary, while in the tourism sector, such as hotels and restaurants, the increase may be set at 20%.
Pay Structure for Non-Working Employees on May 1st
Employees who do not work on May 1st, as prescribed by law, will not have any changes in salary.
The day off on a public holiday is fully paid: this means that for salaried employees, the May 1st will be included in the overall salary, while for hourly workers, the holiday will be part of their hourly wage.
Anticipating the New May 1st Pay Bonus
Meanwhile, with the May 1st decree, the government is set to introduce a new pay bonus, although it will not be available until next year.
It involves a one-time bonus of 100 euros expected in paychecks in January 2025.
Workers entitled to this bonus are those with an annual salary of up to 28,000 euros, married with at least one child.
Alternatively, single-parent households with one dependent child and the same income level will also qualify.