What it calculates
The monthly employer retirement pension owed to someone who worked 25 years or more for the same employer, and the lump sum (fondo global) that can replace those payments if both parties agree.
What you need
- Date of birth and sex.
- Years of service with the same employer.
- Retirement date.
- Average annual pay over the last five years: add your last 60 monthly payments and divide by 5.
How it is calculated
- Individual entitlement: 5% of the average annual pay of the last five years times the years of service, plus your reserve fund (Labor Code, art. 216).
- Monthly pension: Ministerial Agreement MDT-2016-0099 sets it as [(A + 5% × B × C) − D] ÷ E ÷ 12, where A is the reserve fund, B the average annual pay, C the years of service, D what the employer already paid as reserve fund or contributions, and E the age factor in art. 218 of the Labor Code.
- Limits: at least USD 30 a month if you only receive the employer pension, or USD 20 if you also receive an IESS pension, and no more than the average basic wage of the last year.
- Lump sum: calculated with the life annuity factor published by the Ministry of Labor. It cannot be lower than 50% of the basic wage per year of service.
The calculator estimates the pension from the 5% of pay (B and C). It does not add the reserve fund or subtract what the employer already paid (A and D), which the rules do include. For a full calculation, request an actuarial study.
2026 figures
- Basic wage (SBU): USD 482.
- The Ministry of Labor 2026 factor table uses a 6.34% discount rate. For example: 9.5097 for a 60-year-old man and 10.6043 for a 60-year-old woman.
- Minimum lump sum with 25 years of service: 50% × USD 482 × 25 = USD 6,025.
Legal basis
- Labor Code, arts. 188, 216, 217, 218 and 219.
- Ministerial Agreement MDT-2016-0099, amended by MDT-2018-0118.
- National Court of Justice, Resolution 04-2026 (Official Registry, May 18, 2026) and binding precedent no. 16 (November 7, 2025).
Frequently asked questions
How many years do I need for the employer pension?
25 years or more with the same employer, continuous or not. There is no minimum age. If you are dismissed with 20 to 24 years of service, you receive a proportional share; see the unfair dismissal calculator.
Can I receive both the employer pension and the IESS pension?
Yes, they are independent. With both, the minimum employer pension is USD 20 a month; with only the employer pension, USD 30.
Updated on October 23, 2026. This information is for reference only and does not replace a review of your case.
