The annual salary represents the sum of the 12 months of base salary agreed between the professional and his employer with its benefits.
That is, everything that is agreed in the employment contract and governed by the Consolidation of Labor Laws, our CLT.
So, isn’t it the same thing as remuneration?
Despite being used as synonyms, remuneration and salary involve different data .
While the salary involves everything that can be estimated for the year , the remuneration also includes those amounts that vary according to the performance and way of working of the professional , such as:
- Overtime ;
- Gratuities and gratuities;
- Additional unhealthy , dangerous and nocturnal work.
However, knowing what your annual salary is is very important, whether for calculating discounts or for organizing personal finances .
Thus, it is essential for anyone who wants to reorganize themselves financially, plan their family budget or compare job offers, for example.
It is no wonder that many positions in multinationals and startups, which have external references from the labor market, use this value in their recruitment and selection advertisements.
What is the relationship between annual salary and commercial salary?
From your annual salary, you can organize your investments and expenses much more efficiently.
In addition, you can also evaluate job proposals that eventually arise in your professional career. It is clear that better salaries, or better remuneration, are more advantageous, do you agree?
In the commercial area this is even more important. This is because it is a common practice in this sector to divide the professional’s remuneration into fixed and variable salary.
This makes this one of the best professions and salaries for those with a bold, friendly and engaged sales profile.
In this sense, the better your performance, the greater your earnings.
However, the fixed salary is also important, as it defines the starting point of the professional in his career. That is, the minimum amount that he can count every month for his budget .
Business salary and annual salary
It is important to understand that these two nomenclatures, although similar, have different practical uses.
The commercial salary is how much a retail worker should receive minimally for his work , that is, it is linked to his work segment.
It can vary according to the position, type of trade (retail or wholesale) and even the state or city in which the professional develops his activity and is formally registered. That is, some cities may have better minimum commercial wages than others.
Annual salary is an accounting term that applies not only to the commercial sector (but to all others) when the purpose is to calculate benefits and deductions .
How can annual salary help you with financial organization?
But after all, if knowing the annual salary is so important, why, in practice, do we use the monthly salary more to reference job openings and proof of income?
In fact, both are relevant and one does not take away the usefulness of the other. However, for those who want to take their financial organization to another level, using the annual salary is much more interesting and we will explain why. Check out!
Planning means drawing up a plan, organizing a roadmap of actions. And to do this well, you need to know your financial reality.
People who don’t plan their finances usually don’t know what to do when they receive their thirteenth salary , do they?
Thus, they make several purchases at the end of the month, including installments, believing that they are spending what they can, nothing more than what they receive.
However, in the first months of the year, taxes, enrollment fees and other expenses arrive, which, depending on the amount, can force the professional to seek loans or delay the credit card bill, which is much worse.
So, knowing your annual salary is one of the first steps in financial planning , along with the list of regular expenses, amounts to be invested and structural improvements that you need to make in the year. Shall we talk about them?
Intelligent programming of purchases and investments
By knowing how much you earn annually, it is possible to schedule purchases that are, in fact, relevant and necessary in your life .
Reflecting on your expenses makes your situation much clearer, do you agree?
The same goes for your investments. If you define that you must invest 35% of your annual earnings, when you reach BRL 14,688.52 (in the case of our example), you will have already achieved your financial goal and you will be able to remake your plans.
If you have a commercial salary with commission, this calculation helps even more, after all, you can strive in the first few months to achieve this goal and then relax (or make even bigger plans!).
See your Thirteenth Pay and Profit Sharing (PL) with different eyes
We talk a lot about thirteenth salary and commissioning, but we also need to remember that other gains can happen in CLT labor relations, as is the case with PL.
Bankers, for example, receive profit sharing from the institutions they work for. This value, despite being variable, should be part of your financial planning.
Imagine that you are investing in a training course that has a high value, but once it is finished, it will yield good financial results. That’s an investment, right?
However, even though it’s an honorable expense, you’ll have to deal with it, won’t you? In this sense, knowing your annual salary, which includes your thirteenth, you can find out if you can afford this investment, even if it means accruing the earnings until the end of the current year to pay the monthly fees.
Compare job offers
You can also use annual salary to compare job offers, after all, companies offer different benefits .
By comparing the set of salary, benefits and deductions for the 12 months, your vision will be much more accurate. That is, you will certainly be able to distinguish the best professions and salaries.
Okay, now you know how to use the annual salary in your financial management .