Seniority pay (quinquenios): are you owed a bonus for years of service?

“Aren't I owed a seniority bonus?” is one of the most common questions at work. The short answer: sometimes yes, sometimes no, and it depends on where you work. Here we explain what seniority pay is, where it exists, and how to confirm whether you're entitled — without myths.

What seniority pay is

It's a salary supplement recognizing years of work: the longer you've been there, the more you earn. When it's paid every five years it's often called a “quinquenio”. The idea is to reward tenure and experience.

The key point: it isn't universal in the private sector

Unlike leave or the aguinaldo (which are general rights), seniority pay isn't guaranteed for all private workers by a single national law. It usually arises from collective bargaining: each sector defines it (amount, frequency, conditions) in its wage council (Consejo de Salarios). In public employment, by contrast, quinquenios are common. The collective-bargaining framework is Law 10,449:

How it usually works

Where it exists, the bonus is normally computed as a percentage of salary per seniority band (for example, per completed quinquenio) or as a fixed amount that grows over the years. The specifics — how much and how often — are set by your sector agreement, so they can vary widely from one sector to another.

How to know if it applies to you

Don't go by what an acquaintance in another field earns. For your case: check the award or agreement of your wage council, look at your payslip (the bonus usually appears as a separate line), and if in doubt, ask the MTSS or your union. If you work for the State, check your scale and rules.

At a glance

In short: seniority pay exists, but not equally for everyone: it depends on your sector and agreement. Check your award and payslip, and confirm with the MTSS or your union before claiming.