Vacation Settlement Calculation: Seniority Schedules, Pay Formulas, and Settlement Payouts
Argentine law awards 14 to 35 vacation days based on service length (Art. 150 LCT), computed with a 25-day divisor and paid out with bonus upon termination.
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Essential Legal Distinctions
- Seniority Tiers (14 to 35 Days): Statutory duration expands with verified service years.
- 20% Premium Pay with 25 Divisor: Elevates daily earnings above regular day rates.
- Accrues Statutory Bonus (SAC): Adds 8.33% bonus onto final vacation cash payouts.
1. Statutory Annual Vacation Schedule (Article 150 LCT)
Article 150 of the Employment Contracts Act establishes statutory paid vacation days based on employee seniority as of December 31st:
- 14 calendar days: Seniority under 5 years.
- 21 calendar days: Seniority between 5 and 10 years.
- 28 calendar days: Seniority between 10 and 20 years.
- 35 calendar days: Seniority exceeding 20 years.
2. Vacation Premium Pay (25-Day Divisor - Art. 155 LCT)
Vacation pay is computed by dividing gross monthly earnings by 25 (yielding a 20% daily premium). Upon employment termination, accrued unused vacation days must be paid out in cash (Article 156 LCT) plus statutory bonus accruals (8.33%).
Frequently Asked Questions
How is accrued unused vacation calculated upon termination?
Prorated vacation days earned in the year multiplied by gross monthly salary divided by 25, plus one-twelfth (8.33%) for statutory bonus.
Can vacation time be cashed out while actively employed?
No. Article 162 LCT strictly prohibits cashing out vacation during employment; cash payouts occur only upon termination.
How many vacation days do I earn with under 6 months worked?
One (1) calendar vacation day for every twenty (20) days of active service.
Is statutory bonus paid on unused vacation payouts?
Yes. Accrued vacation payouts trigger an extra 8.33% bonus addition.