This process enables you to calculate the annual and monthly seniority amounts the employee is entitled to according to the length of service in the company.

The calculation process of the amounts corresponding to the employee for seniority is carried out using the Annual and monthly seniority calculation function (VESEN).

In general, this process is carried out in ordinary and adjustment payroll processes and is used to calculate the amounts that must be paid to the employee for annual and monthly seniority, in accordance with current legislation.

The calculation is carried out using the employee’s Seniority basis (/612). The following constant values of the Payroll constants table (T511K) are also required:

• Number of days paid annually for seniority (VESAN)
• Number of days paid monthly for seniority (VESMO)
• Maximum number of days paid for annual seniority (VESMX)

Essentially, this process is divided into two parts:

To calculate annual seniority, the system searches for the employee recruitment date (infotype 0000) in order to compare it with the date in which the new Labor Act came into effect. Then:

• If the recruitment date is prior to the date of the new act, you calculate seniority according to the date of the new act.
• If the recruitment date is after the date of the new act, you calculate seniority according to the recruitment date.

Monthly seniority is calculated if the employee recruitment date is included in the payroll being run. In this case, the employee has earned the number of days set out in the monthly seniority legislation.

To calculate seniority, the system checks whether the payment is to be deposited in a company account or in an external bank account. The following wage types are generated depending on the employee seniority basis:

• For a bank transfer to a company account:
  Monthly seniority amount (/721).
  Annual seniority amount (/722).
• For a bank transfer to an external account:
  Monthly seniority amount (/570).
  Annual seniority amount (/571).

After this, maintain the internal tables IT, BT and SEN_EVAL.

Finally, the system checks whether there are any advance seniority payments, in which case the table SEN_EVAL is maintained for interest calculation purposes.