How the Seniority Premium is Calculated in Mexico in the Labor Settlement (Example)

We all feel safer if we have a salary, knowing that with it we can support our family; However, after a while we may leave our job and wonder how much money corresponds to us for the time of the service that we loan and for that the laws protect us with the liquidation; and it is that in Mexico the seniority premium is paid. But, you may want to know how the seniority premium is calculated in Mexico. In this post we want to help you determine this.

In what aspect does the seniority premium come in in Mexico?

Compensation and settlement are a couple of aspects that make up a settlement. If an employee is unjustifiably dismissed, the first aspect applies. But, for all these aspects the employee must have the issuance of a payment receipt that is issued in this Country.

Also when you decide to resign because the employer has violated the labor agreement, although for this to take place it will be necessary to file a lawsuit. In this regard, as workers we can rely on Articles 48 and 49 of the Federal Labor Law. In fact, in Mexico the employee also has the Institute for Social Security and Services for Workers; to make any demand.

dollar bills

The second aspect, the settlement, occurs when we voluntarily decide to resign from our job. Here we get the benefits for which we earn the right for the work we do.

Christmas bonuses, vacations, and vacation bonuses are included in this arrangement. If we have a savings fund, it is also included in the settlement. They must also include the salary of the days worked.

For compensation, the employer must pay us three months of salary that is calculated based on the Integrated Daily Salary. This salary is integrated with disbursements made in cash for bonuses, daily fees, bonuses, room, commissions, or any other benefit that is given to us for working. The seniority premium is the second field present in the compensation.

What formula do we use to calculate the seniority premium in a labor settlement?

This calculation is done quite simply. It is considered that for each year of service rendered in a work environment a total of 12 days of salary will be accumulated.

To this is added the proportion of the last year in relation to this. According to the articles of the Federal Labor Law, the maximum salary to calculate the premium will be equal to two general minimum salaries.

It may happen that the worker’s salary exceeds twice the minimum salary due to the geographical area of ​​application corresponding to the workplace. In this case, that salary is considered as the maximum salary, regardless of whether the cancellation is made later.

A man with banknotes in hand

Let’s take an example of a calculation of seniority premium in Mexico. Suppose we earn a General Minimum Wage of $ 70. According to the Law we have to multiply it by 2 so that it gives us the maximum limit, which would be $ 140 in this case.

Now let’s think that we last 2 full years of service equivalent to 24 days. To this we add a third year whose proportion was 160 days ((12/365) * 160) Total 5.26 days more.

In the final count, the number of days old would be 29.26 (24 + 5.26). We multiply this figure by $ 140 and we get the total result of $ 4096.4.

This would be the amount of the seniority premium that this worker would get as an example. The data to have the premium figure are summarized as follows:

  • General Minimum Wage (SMG) x 2
  • 1 year of service = 12 days seniority
  • Proportion of the last year of work = (12/365) x (number of days worked in the year)
  • Seniority premium = (SMG x 2) x (Total number of days per seniority)

Knowing how the seniority premium is calculated in Mexico in a labor settlement gives us security; But if the employer violates the labor agreement, you can schedule your appointment at ISSSTE. Through this post we have shown you how you can calculate your work premium. We hope we have helped you. We would like to know your comment, do not forget to write us.

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