Several workers from Colombia are doing accounts of the mid-year bonusJune premium or the so-called premium services. It is a cash recognition that is given to the employee for completing a semester and a year of work in a public or private entity.
(You can read: Mid-year premium: how to calculate it in 2023).
The premium is an obligation of the company, as established by the Substantive Labor Code. Of course, keep in mind that it does not apply to all employees in the country.
Who receives the premium?
All the workers of the company with an indefinite, permanent contract and, in general, those who meet the conditions of dependent employee. Among the beneficiaries are also:
- Domestic service workers.
- Family service drivers.
- Day workers or farm workers.
Who does NOT receive the premium?
Workers with an apprenticeship contract are not entitled to the premium.
The payment is not contemplated for Colombians who have other forms of connection with the company, such as:
- Independent workers.
- Workers under contract to provide services.
- Temporary workers.
- Workers who receive a full salary.
- Casual or temporary workers.
- Apprentices or people with an apprenticeship contract.
(We recommend: Don’t know how to take advantage of the mid-year bonus? Here are some tips.)
How much do they pay in the mid-year premium?
The premium is the payment of one salary per year, which is made in two transfers. In other words, if you earn $1,500,000 monthly, you will receive that amount in two payments: $750,000 in the middle of the year (June) and the other $750,000 at the end of the year (December).
«Its recognition will be made for the entire semester worked or proportionally to the time worked», precisely article 306 of the Substantive Labor Code.
The premium is a benefit that workers receive.
In the previous case, for those who have not fulfilled the time of the year or semester in the company, The premium is calculated with this formula: salary x time worked in days / 360.
For example, if you earn $1,200,000 and have worked 110 days, the premium calculation is as follows: 1,200,000 x 110 / 360 = $366,666.
(Keep reading: Utility Premium: When is the mid-year premium due?)
When do they pay the premium?
According to the law, the mid-year premium must be paid no later than June 30 and the year-end bonus «no later than the first twenty days of December.»
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