Severance interest must be paid directly by the employer, no later than January 31. The administrator fund does not intervene here, that is, the item is consigned directly to the worker together with the payroll for the period in which they are settled. While the payment of the layoffs expires on February 14.
Layoffs are savings and must be paid to all dependent workers, that is, whoever is bound by an employment contract regardless of its type or duration. They are a social benefit that the employer must cover for its workers in addition to the ordinary salary.
The amount of this remuneration is equivalent to one month’s salary for each year worked by the employee, or proportional if the time worked is less than said period. In this way they become savings in the event that you become unemployed or to achieve objectives in terms of housing and education.
These are settled annually on December 31 and are deposited in a Severance Fund before February 15 of the following year (Law 50 of 1990); that is, the term for this year goes until Tuesday, February 14.
The worker has the right to choose, but before December 31 of the year to be settled, the Severance Fund in which he wishes to be consigned. This decision must be formally communicated to the human management area of the company where it works.
In addition, the people who contribute can make partial and/or total withdrawals of these layoffs in accordance with what is established by law: for example, for housing, education and due to the termination of the employment contract.
In accordance with the regulations, the moratorium penalty for not consigning the layoffs in a timely manner consists of one day’s salary for each day of delay in consigning the layoffs.
A simple way to calculate layoffs is:
One monthly salary per year. (For example, if you worked throughout the year 2022 and earned $2,000,000 monthly, you will receive this amount).
Or proportional by fraction of the year, and it is layoffs = average salary * days worked / 360 days (example: $2,000,000 *150 days / 360 days = $833,333).
However, since layoffs are savings, the worker is entitled to annual interest that goes from January 1 to December 31 of the corresponding year.
This amount must be paid directly by the employer, maximum on January 31 of the following year, that is, until tomorrow Tuesday. The severance fund administrator does not intervene here, that is, these interests are paid directly to the worker together with the payroll for the period in which they are settled.
Interest corresponds to 12% per year or proportional to the fraction of the year in which such savings were made.
It is important to bear in mind that said interest on layoffs is different from the financial returns reported by the administrator funds.
If the employer does not consign the corresponding remuneration, he must pay double the total value of the severance interest as the equivalent of compensation.
A simple way to calculate interest is: (Accumulated severance pay at the time of settlement x days worked during the year x 12%) ÷ 360
Example, ($833,333 * 150 days *0.12 /360) ÷ 360
With information from Protection and Colfondos.