What is the seniority bonus and how is it paid?

The Federal Labor Law guarantees payment of the seniority bonus after 15 years of service.

In Mexico, workers who have provided services for at least fifteen years have right to receive a seniority bonus, as established in article 162 of the Federal Labor Law.

This right applies to employees who decide to terminate their employment relationship voluntarily, as well as those who are firedwhether for justified reasons or not.

The seniority bonus consists of payment of twelve days’ salary for each year of service rendered.

The Supreme Court of Justice of the Nation has ruled that the calculation of this payment should not be less than one minimum wage or greater than two minimum wages.

If the worker’s salary exceeds twice the minimum for his or her geographic area, this limit will be taken as a reference for calculating the premium.

To calculate the seniority premium, employers must consider the worker’s daily salary as a base, but limited to twice the minimum wage of the region where the work is performed.

In accordance with the Federal Labor Law (LFT), the seniority bonus is granted to employees under the following conditions:

1. Voluntary resignation: Workers who decide to leave the company voluntarily after having completed at least 15 years of service, have the right to receive this compensation.

2. Dismissal: In both justified and unjustified dismissal situations, employees who have accumulated 15 years of service qualify for payment of the seniority premium.

3. Death of the employee: In the event that an employee dies, the seniority premium will be paid to his or her heirs or legal beneficiaries, regardless of the employee’s length of service in the company.

4. Voluntary collective retirement: The law also contemplates the payment of the premium for cases where a group of employees chooses to voluntarily retire from the company, as detailed in article 162, section IV.

This labor law highlights the importance of seniority in the evaluation and compensation of employees, offering a measure of financial security at the end of long periods of service.

For those interested in delving deeper into how seniority can influence employee promotion, we recommend reading the article “Rules for promoting a worker” in edition number 539 of the digital magazine, published on August 31, 2023.

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