END-OF-SERVICE ALLOWANCE

Payment which has replaced the seniority allowance following the adoption of Law No. 297 of May 29, 1982.

In contrast to the system used for the seniority allowance, the method of calculating the end-of-service allowance is based not on the last level of pay multiplied by the number of years of service with the same employer, but on the sum total of portions of the employee's pay set aside every year in accordance with criteria laid down by the Law. These calculation criteria have neutralized the multiplying effect of seniority in fixing the allowance.