A few years ago, the news that many conventions have annulled or frozen the seniority bonus. Such decisions cause a The impact on the wage structure and thus on the purchasing power of workers.
The seniority bonus is one of the supplements added to the worker's base salary on their payslip.. Its amount is variable and will depend on the years the worker has provided their services to the company, but also on what the applicable collective agreement for their industry has stipulated.
In general, The seniority bonus is a special form of remuneration for employees who have passed a fixed period of time for the purposes of this compensation., and which can be established on the basis of:
However, since the late 1990s, especially after the 1994 labour reform, this figure has begun to disappear and is maintained in few sectors.
It, for the worker, this change represents a considerable reduction in the payroll. In many cases, the seniority bonus was an almost as relevant part as the basic salary itself and, therefore, one of the pillars of remuneration. Measures such as freezing or withdrawing this supplement can lead an employee to consider looking for work in another company, in an attempt to match the economic conditions they enjoyed until such a substantial change occurred.
For companies, the progressive disappearance of the seniority bonus is not a source of financial benefits, as one might think. While there are savings, there are also new costs. which the businessman will have to face, and which have to do with:
However, there are formulas that manage to balance the scales on both sides, satisfying both the needs of the worker who has lost their seniority bonus and the financial equilibrium of the company which deals with facing the new situation.
The seniority bonus was an incentive for employees, encouraging them to stay with the company, thereby facilitating the company's Talent retention. At the same time, it was an important relief for workers and their families, who had more financial support. But today, in the absence of this supplement, there are formulas that allow the workforce to be benefited in a similar way. One of them is the Flexible remuneration.
Allowing each employee to individually agree on the benefits they wish to receive ensures a better fit with their needs, while at the same time their purchasing power is increased.
For businesses implementing this flexible reward model, the benefits are quick to follow., in the form of a boost to employer branding, productivity and employee motivation.
