What is severance pay?
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Everything you need to know about severance pay: what it is, how it is calculated, when you can withdraw it, and how FNA can help you manage it better.
Definition of severance pay
Severance pay is a social benefit that corresponds to one month of salary for each year worked. This money is deposited annually by your employer into a severance fund and is intended to protect you financially during periods of unemployment.
In Colombia, severance pay can also be used to finance education (yours, your spouse, or your children) and for the purchase, improvement, or release of mortgage on housing.
How is severance pay calculated?
Severance pay is calculated by multiplying your monthly salary (including all payments that constitute salary) by the number of days worked in the year and dividing the result by 360. If you worked all year, you will receive the equivalent of one month of salary.
Benefits of having your severance pay at FNA
By depositing your severance pay at FNA, you not only comply with the law, but also access exclusive benefits. You can make additional voluntary contributions, access mortgage loans with preferential rates, and enjoy a secure and transparent administration of your resources.
Additionally, FNA offers you multiple consultation and service channels so you are always informed about the status of your severance pay.
