Frequently asked questions
How are the service bonus and severance fund calculated?
Both use a 360-day commercial year: the service bonus is 30 days of salary per year, paid per semester and prorated to the days worked in the semester; the severance fund is 30 days of salary per year, prorated to the days worked in the year, plus 12% annual interest, prorated. The base includes the transportation allowance when salary is up to 2 times the minimum wage for the year of separation; vacation pay is calculated without that allowance.
How is the indemnity for dismissal without just cause calculated?
On an indefinite contract, with salary below 10 times the minimum wage it is 30 days for the first year plus 20 days per additional year (prorated); at 10 times the minimum wage or above it is 20 days plus 15 days per additional year. On a fixed-term contract it is the salary for the remaining time on the contract, counted in 30-day months. On a project or task contract it is the same calculation, with a 15-day minimum.
What does this final settlement calculation NOT include?
It does not include unpaid salary for the last period worked, social security contributions, income tax withholding, or any loans or deductions the employee owes the company.
My salary is variable — what value do I enter?
Enter the average earned over the period that applies to each item — the semester for the service bonus, the year for the severance fund and vacation pay — the law requires averaging a variable salary, not using the last month alone.
Why does it sometimes not calculate the indemnity?
If the hire date is on or before December 27, 1992, the employee already had 10 years of service when Law 789 of 2002 took effect and keeps the Law 50 of 1990 indemnity table, which this calculator does not cover; in that case only a notice is shown, with no amount.