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The premium services It is a social benefit that employers must pay to their employees. This premium corresponds to one month’s salary for each year of work and is paid in two installments during the year.
According to the National Administrative Department of Statistics (DANE), for April the occupancy rate was 57.2%, close to 22.4 million Colombians.
Now, the first installment of the service premium, which corresponds to half a salary, must be paid no later than June 30th every year. The second installment of the service premium must be paid no later than the December 20th every year. In both cases, every worker with a legal contract must be paid, except for the provision of services.
These deadlines are established by law and are mandatory for all employers. Now, what happens if the employer exceeds the deadline?
The consequences of not paying on time
According to the Ministry of Labor, if the employer does not pay the premium within the deadlines established by law, it may result in the imposition of fines of 1 to 5,000 current legal monthly minimum wages.
In addition, labor judges can order the payment of default compensation which corresponds to one day of salary for each day of delay in payment.
It is important to keep in mind that these deadlines and rules apply to workers with an indefinite-term contract, a fixed-term contract, or those who meet the conditions of a dependent employee. Workers who have a contract for the provision of services are not covered by these provisions.
