Next, December 20, is the last deadline for the second payment of the 2019 service premium. As established in Law 1788 of 2016, all domestic workers are entitled to receive the premium.
What is the service premium?
The service premium is a social benefit that corresponds to all workers as a recognition of the profits obtained in the company. Due to its business nature, domestic workers were excluded from this right in the past. However, since 2016 with Law 1788, labor equity for domestic workers and their right to receive the service premium was recognized.
Who are considered domestic service workers?
Any natural person who provides household services performing tasks such as cleaning, cooking, washing, ironing, childcare, gardening, family driving, and other household chores is considered a domestic worker.
Who is obliged to pay the service premium?
According to current regulations, all persons and companies with employees are obliged to pay the service bonus. Failure to do so may result in fines or penalties for non-compliance.
Do I have to pay the premium to my domestic employee even if she works for days?
Yes, the premium payment is a right for all domestic workers regardless of their working day, whether it is only 1, 2, or 3 days a week. The amount to be paid is calculated in proportion to the time worked.
How much should I pay my employee for the premium?
For a full-time employee, the service bonus is equivalent to one month’s salary for each year worked. If the employee has been working for less than one year or if the employee works daily, the payment will be proportional to the time worked. Remember that the premium payment must be made directly to the employee.
When should I pay the bonus to my employee?
The premium payment is made in two annual installments. The first premium payment is due for the time worked between January 1 and June 30 and must be paid before June 30. The second payment corresponds to work performed between July 1 and December 31 and must be paid before December 20.
What is the penalty for failure to pay the service bonus?
Employers who fail to timely pay the service bonus to their employees must pay them an indemnity. According to article 65 of the Substantive Labor Code, the employer must pay an indemnity corresponding to one day’s salary for each day of delay in delivering the premium. In other words, if you are late for one year and you pay $50,000 per day to your employee, in one year, the fine would amount to $18,250,000. Keep in mind that female employees are increasingly aware of their rights and can report to the Ministry of Labor those who do not comply with the payments required by law by calling the 120 lines.
How can I calculate the value of my maid’s premium?
The formula to calculate the value of the premium is as follows:
PREMIUM = Monthly salary (including transportation allowance) x days worked during the six months / 360
The result of this operation will be the amount to be paid for the service’s premium for the semester.
Thinking of your comfort, in SERV, we protect you from all this arduous paperwork and give you total peace of mind through the complete outsourcing of your domestic employee. Our services are designed to let you know how much the estimated value of your social benefits obligations will be.
More information at SERV.
If you wish to continue with your current informal employee, ensure that your employee signs the receipt of all payments to avoid future problems.
