The seniority premium in Mexico it refers to a labor benefit that workers are entitled to receive when you end your employment relationship with a company, as long as they have completed at least one year of service. It is a benefit that seeks to recognize the loyalty and commitment of workers to the company.
Regarding the payment date, the Federal Labor Law establishes that the seniority premium must be paid at the time the employment relationship is terminated. The worker must receive a settlement that includes the seniority premium, as well as other concepts such as Christmas bonus, unused vacations, among others.
It refers to the additional payment granted to plant workers for the time worked at the employer’s service, as defined by the Federal Labor Defense Attorney’s Office (PROFEDET).
“The Supreme Court of Justice of the Nation (SCJN) established that the amount of the seniority premium cannot be less than one or more than two minimum wages, and in the event that the salary exceeds double the minimum wage of the geographical area of application to which the place of work corresponds, this amount will be considered as the maximum salary, regardless of whether the payment is made later.
How is the Seniority Premium calculated?
The seniority premium is calculated by multiplying the worker’s daily salary by the number of years of service rendered, and by a factor that varies according to the Federal Labor Law and the conditions established in the collective labor or individual contract. In general, the factor used is 12 days of salary for each year of service.
This amount consists of the amount of twelve days of salary for each year of service. In the event that you do not work the entire year, they must pay you the proportional part according to the time worked during the year.
To calculate the daily salary, divide the monthly salary by 30 days. In the event that the worker has a variable salary, the average of the last three months of salary must be taken into account.
For example, to calculate the seniority premium of a person who worked for 10 years in a company, it is necessary to know their daily salary and the factor that is applied for its calculation.
Suppose that the worker’s daily salary is $500 pesos and that the factor established by the Federal Labor Law and the collective bargaining agreement is for 12 days of salary for each year of service.
The calculation would be the following:
Daily salary x Number of years of service x Factor = Seniority premium
$500 x 10 years x 12 days of salary = $60,000
Therefore, the seniority premium for this person would be $60,000 pesos. This amount must be paid at the time the employment relationship is terminated, and must be included in the settlement delivered to the worker.
It is important to mention that there are exceptions in some cases where the seniority premium can be paid proportionally to the time worked in the event of voluntary resignation, dismissal for just cause or dismissal without cause.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.