Salary bonuses: Find out what they are, how they work and see if you are entitled

Salary bonuses are a salary supplement directly linked to employment seniority, representing financial recognition of the experience accumulated by workers over the years. Although widely present in Portugal, this right is not always understood, raising doubts about who can benefit and how they are calculated. The platform recently clarified the topic, addressing the main issues related to this benefit.

What are seniority payments?

Bonuses consist of an increase to the base salary attributed to workers depending on their length of stay at a company. This salary supplement is a way of valuing accumulated experience and encouraging employee loyalty.

In practical terms, the value of bonuses increases as the worker accumulates years of service. However, the frequency and values ​​vary according to the collective labor regulation instruments applicable to each sector, as there is no uniform standard for all workers in Portugal.

Why do seniority payments exist?

The main objective of seniority payments is to recognize and value the worker’s seniority, reflecting their experience and commitment to the company. Among its purposes, the following stand out:

• Recognition of experience: Value the contribution of workers over time.
• Employee loyalty: They encourage retention in companies, reducing turnover and costs associated with recruitment.
• Equity in the workplace: Promote justice by rewarding loyalty and dedication.

In addition to strengthening the relationship between employers and employees, long-term bonuses have a positive impact on workers’ motivation and financial stability.

Who is entitled to receive seniority benefits?

In Portugal, the right to seniority benefits is not expressly provided for in the Labor Codebeing regulated by collective employment contracts, company agreements or internal regulations. Therefore, workers covered by collective agreements that stipulate it are entitled to this supplement.

Common criteria for award:

1. Active employment contract: Only workers with current contracts can receive seniority payments.
2. Seniority at the company: Entitlement is awarded based on the number of years of service. The periodicity can vary between 3, 5 or 10 years, depending on the sector.
3. Sectors covered: Long-time payments are more common in sectors such as commerce, industry, transport and hotels.

How are seniority payments calculated?

The calculation of seniority payments depends on the rules established in the applicable collective employment contracts. Key factors include:

• Unit value: Determined by collective agreements, normally set as an amount for each period of seniority.
• Periodicity: The award can be made at regular intervals such as every 3, 5 or 10 years of service.
• Payment method: The amount of seniority payments is incorporated into the base monthly income, reflected in the calculation of subsidies and pensions.

For example, if a collective agreement stipulates 20 euros for seniority for every 5 years of service, an employee with 15 years at the company will receive 60 euros in addition to their base salary.

Benefits for workers and companies

For workers:

• Increase in monthly income: Seniority payments become a permanent asset, also benefiting holiday and Christmas bonuses.
• Recognition of commitment: They function as an incentive and appreciation for dedication.
• Financial stability: These are especially important for long-term workers.

For companies:

• Reduction in turnover: They encourage workers to stay with the company, reducing recruitment costs.
• Increased productivity: Valued employees tend to be more motivated and productive.
• Reputation improvement: Companies that recognize seniority are seen as reference employers.

Limitations and challenges

Despite their benefits, seniority benefits have some limitations:

• Inequalities between sectors: The absence of a general standard creates significant disparities between workers in different areas.
• Cost for companies: Especially in times of economic difficulties, paying seniority payments can represent an additional burden.
• Lack of knowledge of rights: Many workers do not know that they are entitled to this supplement, making access to the benefit difficult.

How do you know if you are entitled to seniority benefits?

To confirm the right to this salary supplement, workers must:

1. Consult the collective employment contract: This document details industry-specific conditions.
2. Speak with human resources: The HR team can answer questions and confirm eligibility.
3. Visit unions: Unions are a reliable source of information about labor rights.

Seniority payments are more than a simple salary supplement; represent a tangible recognition of the dedication of workers and an incentive for loyalty. Although their attribution depends on collective agreements, they are a widely valued practice in Portugal.

For workers, long-term benefits not only mean an increase in income, but also a sign of appreciation from companies. For employers, they are a tool to attract and retain talent, promoting more balanced and fair labor relations.

In the end, seniority reflects the importance of valuing human capital as one of the pillars of business success and stability in the job market.

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