How the Prorated Annual Bonus (SAC) is Calculated upon Termination
Prorated SAC upon dismissal is calculated by taking 50% of the semester's highest monthly wage multiplied by the fraction of days worked, plus bonus on notice pay.
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Essential Legal Distinctions
- Prorated SAC is NOT Seniority Severance: The SAC is deferred compensation accrued daily; Art. 245 is a dismissal indemnity.
- SAC on Notice Pay IS Mandatory: Under CNAT En Banc Precedent No. 139, omitted notice triggers an 8.33% bonus addition.
- Requires regularizing off-the-books pay: Informal wages must be formalized to integrate into bonus computations.
1. Statutory Framework of the Annual Statutory Bonus (SAC)
The Argentine Statutory Annual Bonus (SAC) is governed by Articles 121 through 123 of the Employment Contracts Act (Law No. 20,744) and Law 23,041, representing one-twelfth (1/12) of aggregate annual wages.
Upon employment termination for any cause, the employer must pay the prorated fraction accrued through the final day of work (Article 123 LCT).
2. Statutory Formula and Computation
Prorated SAC is computed as (Highest Semester Monthly Wage / 2) × (Days Worked / 180). Furthermore, under binding precedent 'D'Aloi' (CNAT), omitting notice pay requires adding an 8.33% bonus portion on top of notice and month integration pay.
Frequently Asked Questions
Is prorated SAC payable if I resign voluntarily?
Yes. The Statutory Annual Bonus is a vested labor right and must be paid in all termination scenarios.
How do overtime and commissions affect the bonus calculation?
All regular overtime and commissions factor into gross monthly earnings to determine the highest base in the semester.
What if the employer omits bonus on notice pay?
Under binding precedent 'D'Aloi' (CNAT), omitting the 8.33% bonus over pay in lieu of notice is unlawful and fully recoverable.
What is the deadline to receive the bonus upon dismissal?
The employer must disburse the full final severance settlement within 4 business days following dismissal (Article 128 LCT).