Prima de antigüedad, meaning "seniority premium" or "seniority bonus," is a mandatory benefit under Mexico's Federal Labor Law that rewards employees for their years of service. It provides 12 days of capped salary for each year worked and is payable under specific termination circumstances.
When It Applies
The prima de antigüedad is paid when an employee is terminated without cause, when an employee with 15 or more years of service voluntarily resigns, upon the employee's death (paid to beneficiaries), or in cases of disability. Employees who resign before reaching 15 years of service are generally not entitled to the seniority premium.
Calculation
The formula is 12 days of salary per year of service. However, the daily salary used is capped at twice the daily minimum wage, regardless of the employee's actual salary. This cap significantly limits the benefit for higher-paid employees. The total amount has no maximum number of years — an employee with 30 years of service would receive 360 days of capped salary.
EOR Relevance
An EOR in Mexico tracks employee seniority, calculates the prima de antigüedad using the correct capped rate, and includes it in termination settlements. While the individual amounts may be modest due to the salary cap, it is a legally required component of Mexican severance that must not be overlooked.