Do you have questions regarding the Seniority Premium? then we recommend that you read the following information in which we will answer the questions . When and how is the Seniority Premium paid in Mexico? Complete Guide .
Without a doubt, if you are an employee within Mexico, you should know all the aspects related to the Seniority Premium, as well as the value of the UMA. Given this, it is necessary to be well informed and know the essential aspects of the law.
What is the Seniority Premium?
Seniority Premium is a specified amount that is given to employees after terminating an employment relationship. As its name indicates, this is an amount that is offered for the seniority or time that a worker has served in the company.
The seniority premium requires that the employee has completed at least 15 years of service. If so, the amount that ends up being paid is the equivalent of 12 working days . In any case, this can raise doubts in many people. Reason for which, we will give you this information through the following guide.
When and how is the Seniority Premium paid in Mexico? Complete Guide
Since 2011, it was established that the so-called Seniority Premium will be established based on the salary amount that employees receive at the end of an employment relationship. It should be noted that this is independent of the reason for the job termination. Therefore, the Seniority Premium will be the same whether due to resignation, disability, retirement or even in the event of death.
All this information can be found in article 162 of the Federal Labor Law. In this article it is determined that the so-called Seniority Premium will be paid only to all those workers who have served at least 15 years offering their services.
The seniority premium is established in the payment of 12 days of salary for each of the years that the worker offered his services. Similarly, in relation to the established amounts, this information can be seen in article 485-486 of the Federal Labor Law.
How is the Seniority Premium calculated in Mexico? Articles 485 and 486 establish that it is essential and mandatory that the basis for payment of compensation is established with a salary not less than the established minimum salary . On the other hand, if the worker’s salary is double the minimum wage, then this figure will be considered as the maximum amount.
When is the Seniority Premium paid in Mexico?
- Resignation: The Seniority Premium will be paid even if the worker decides to resign on his own account, as occurs with Unemployment Insurance. Clearly, this ties in with the principle that you must serve at least 15 years offering your services.
- Dismissal: In the case of dismissals, the Seniority Premium will be paid even when 15 years of service are not completed. In any case, this has certain exceptions, so it is best to consult with a legal advisor.
- Disability: If the worker has a condition that makes it impossible for him to continue offering his services, he may opt for the seniority premium as long as he has exceeded 15 years of service with the company.
- Retirement and retirement: As in the previous cases, before the retirement or retirement of the worker, the Seniority Premium must be paid in relation to the years of service that the employees have offered.
- Death of the worker: Even in the event of death, the Seniority Premium must be paid if at least 15 years of service are completed. In this case, the premium will be paid to the persons or relatives determined by the labor authorities.
As you can see, if you are a resident of Mexico, knowing everything about the seniority premium is something that you should take into account, since it represents a right that you have as a worker.