How to calculate the five-year period: Complete guide for HR

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We know that calculating the five-year period can be a complicated and often confusing process. However, it is an employee right and can be an important source of extra income over time. Therefore, it is essential to understand how to calculate it correctly.

In this guide, we will explain in detail how the five-year period works , what the eligibility criteria are, how to calculate the amount and much more. All so that you can inform yourself and guarantee your right.

Be sure to read this complete article and get all the information you need to calculate the five-year period correctly and fairly.

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What is the five-year period and how does it work?
The five-year period is a labor benefit granted to some professionals after completing 5 years of continuous service in the same company or institution. It refers to the salary increase granted to the worker for each period of 5 years of work. This benefit is guaranteed for some professional categories , such as teachers and public servants, and may vary according to the convention or statute of the profession.

In the case of employment, for every five years of service, the employee is entitled to a 5% increase in his/her salary . This increase is cumulative, that is, for each new five-year period completed, the value of the increase is added to the previous one, creating a gradual increase in the employee's salary.

Likewise, the purpose of the five-year period is to recognize and value the experience and dedication of the employee over the years. For the HR department, it is essential to correctly calculate the five-year period and thus ensure that the benefit is granted in accordance with the rules and avoid labor problems.

What is the basis for calculating the five-year period?
Now, to calculate your employees' five-year bonus , you need to know the basis for calculating this important benefit. Here are some key points you need to know:

The basis for calculating the five-year period is the worker's base salary, plus all fixed salary amounts, such as bonuses, hazard pay, night shift pay, among others;
Variable amounts, such as overtime, commissions, unhealthy or dangerous work allowances, among others, are not included in the calculation basis for the five-year period;
If the employee has received a salary increase during the five-year period, the calculation of the five-year period must be based on the new salary, plus all fixed salary amounts that were already paid before the increase.
Now that you know what the calculation basis for the five-year period is, it is important to be aware of the deadlines for granting this benefit and include it in your employees' payroll , in addition to ensuring that the calculations are done correctly.

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How to calculate the five-year period?
If you are a business owner or human resources manager and want to know how to calculate your employees' five-year salary, follow these steps:

Check whether the five-year period is a benefit guaranteed by the collective agreement of the category in which your employee is included.