In some cases, instead of salary, you may hear about conglobated pay.
However, the meaning of this term may be unknown to most workers who are curious to understand what conglobated pay entails and how the amount is calculated.
Conglobated pay refers to the sum of the basic pay (also known as remuneration or minimum wage) and the contingency allowance, a parameter that, until 1991, adjusted remuneration to the cost of living and was updated quarterly.
Although the contingency allowance has been frozen since November 1, 1991, some national collective labor agreements (Ccnl) still include it under the designation of Edr (distinct element of remuneration), thus integrating it into the salary.
This explains why some workers still hear about conglobated pay, even if many do not know exactly what it means.
As mentioned, conglobated pay includes two main components:
The basic pay, also known as base remuneration, minimum wage, or contractual minimum, is the amount of salary established by the Ccnl of the relevant category, based on the contractual classification level of the worker.
This amount may vary in case of:
The contingency allowance, or sliding scale, was a well-known salary component in the ’70s and ’80s when it was quarterly updated to adjust the salary to changes in the cost of living.
Since 1986, the update became semi-annual until it was frozen in 1991.
Since then, many Ccnl have integrated this allowance into the basic pay, while others still consider it a separate item.
Some contracts have replaced the contingency allowance with the Distinct Element of Remuneration (Edr), amounting to €10.33 monthly, which does not vary as it is not linked to the cost of living adjustment.
Edr is paid monthly to private sector workers, excluding executives, usually found at the top of the pay slip, influencing the calculation of the thirteenth salary and the end-of-service gratuity (Tfr), but not the fourteenth.
Some Ccnl provide different items compared to the commonly present Edr in the payslip:
Understanding conglobated pay and its components is crucial for properly evaluating a job offer and gaining clarity on your payslip.
Detailed knowledge of this item allows workers to better understand their remuneration and negotiate their salary or increases with greater awareness.
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