A study carried out by the National Federation of Merchants (Fenalco) indicates that 65% of Colombians who received the premium in 2022 invested it in different financial products such as stocks and mutual funds.
With the purpose of promoting good financial health, the Porvenir Pension and Severance Fund and Clever Finance answer some questions about this social benefit and share some tips so that workers can make the most of this extra income.
Read: Who does and who will not receive the mid-year bonus
What is the service premium and when is it paid?
The service premium, like vacations and severance pay, is a mandatory social benefit paid by employers. It consists of remunerating the salary of 30 days for each year worked or proportional to the time worked, when it is less than one year.
Read: Penalties that employers would receive for not paying the premium
In accordance with the Substantive Labor Code (article 306), the premium must be paid to employees at two times of the year: the first half, maximum on June 30, and the other half no later than the first twenty days of December .
How is it calculated?
The formula to calculate the premium is made by multiplying the salary by the days worked in the semester and then dividing the result by 360 days.
To give an example, a worker who earns a minimum wage will receive a bonus, as long as he has worked the first 180 days of the year, an amount of $580,000 before June 30.
Tips so that the premium does not become pocket money
One of the main concerns that workers may have is that those extra resources that enter their accounts will quickly disappear. So keep in mind:
— Allocate about 10% for savings. The first piece of advice is to always think about the future and possible unforeseen events that may arise, which is why Porvenir and Clever Finance invite you to allocate at least 10% of the premium amount received for this purpose and thus be able to have a cushion for future unforeseen events.
Read: What you need to know to calculate the premium payment for domestic workers
— Make an investment that allows that income to grow. A viable option is to invest the premium, taking advantage of the current economic situation of higher interest rates. The Porvenir Pension and Severance Fund, for example, has voluntary pension savings plans with a wide range of investment alternatives between local and global that allow the development of different types of savings strategies, according to the investment horizon and risk profile. let it be defined
— Invest in goods or services that improve well-being. If you have other forms of investments, the advice is to allocate this income to goods or services that improve your well-being, such as study, travel, gifts for relatives, or even for short-term goals. In this case, a good option is to use the credit card at a single installment and pay with the premium and in this way take advantage of the benefits offered by certain credit establishments such as points, discounts or special days. Thus, there is an additional benefit and the payment of interest is avoided by deferring purchases to a single installment.
