How do you know if you are entitled to a double payment? We tell you

As established by the Ministry of Justice, the service premium is compensation that the employer must deliver in recognition of the economic and social benefits derived from the employee’s work.

This benefit translates into one month of salary for each year of work, or in its corresponding proportion if the time worked is less. The distribution of this payment is made in two parts during the year: the first half in June and the second in the first twenty days of December.

The obligation to pay this premium is clearly defined in the Substantive Labor Code, specifically in articles 65 and 306. These articles stipulate that the service premium is not a discretionary benefit of the employer, but a legal obligation that is part of the payroll.

Failure to comply with this obligation may lead to legal sanctions for the employer. According to the law, “the employer is obliged to pay his employee or employees, the social benefit called service premium that will correspond to 30 days of salary per year, which will be recognized in two payments, as follows: half maximum on the 30th June and the other half no later than the first twenty days of December. Its recognition will be made for the entire semester worked or proportionally to the time worked.

In recent times, a debate has arisen in the country about the practice of some companies of offering double payment of the service premium. This issue has generated confusion among workers who are not clear if this double payment is mandatory or if it is an optional additional benefit.

It is important to clarify that The double bonus or any additional bonus to that of services is not contemplated in the Substantive Labor Code. Therefore, it is not a legal obligation for employers. These types of additional benefits are considered extralegal and depend on the company’s willingness to offer additional improvements to its workers.

Experts point out that these benefits are usually included in collective pacts or agreements between employers and employees and are not part of standard salary regulations in Colombia.

For example, if a worker receives the minimum wage of $908,526 per month in 2021, plus a transportation subsidy of $106,454, The total amount is divided by 360 to determine the service premium. This amount is divided into two payments (June and December), which means that the worker is entitled to a service premium of $507,490 per year.

“For example, a person who earns a minimum wage in 2021, that is, $908,526 per month, plus the transportation subsidy of $106,454 and is divided into 360. The total is divided into two payments (June and December), which means that you are entitled to a service premium of $507,490 per year,” they explained from the Ministry of Labor.