Severance payments and interest on severance payments
The severance benefit is a mandatory social benefit to be paid by any employer, whether an individual or a legal entity, equivalent to one month's salary for each year of service or proportional when it is a shorter period. If the salary has changed within the last three months, either due to an increase or because the worker receives a variable salary, it must be averaged.
The deadline for the payment of this allowance in the fund to which each worker belongs is next Friday, February 14.
Likewise, the employer must recognize directly to the worker a 12% annual interest on the amount of the severance payment, which, as well as the severance payment, must be proportional to the time worked and must be paid no later than today, January 31.
The non-compliance for each obligation is different with respect to the interest on severance payments. If the employer does not pay them on the indicated date, it must pay to the employee as indemnification and only once, an additional amount equal to the interest caused. With respect to the non-payment of the severance payment within the indicated term, the indemnity will be to pay one day's salary for each day of delay.
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