Calculation of length of service | Calculation and features
Ecovis | 29 November 2024
The process of calculating length of service can seem like a complex and overwhelming task for most of us.
How is it calculated? What are the specifics and what should be taken into account when calculating ? And even "why is it necessary to calculate length of service" are a very small part of the questions that probably almost all of us ask ourselves.
But the reasons are more than clear. Work experience is the way to show your expertise in a particular field of work. But not only.
It demonstrates the time (hours/days/months/years) spent developing skills in a specific activity. And the longer this time, the better for us and for our future professional development.
To understand all aspects of calculating length of service, stay with this article on Ecovis Bulgaria. In the following lines, we will reveal the answers to the most asked questions about the length of service, as well as its differences with the insurance length of service.
Important things that each of us must know, so be sure to learn them!
What is work experience?
Every able-bodied person "accrues" work experience while employed by an organisation or employer.
Length of service is the time you are formally employed. It helps us to exercise our rights as employees. This includes the holiday days we are entitled to, as well as the possibility of retiring and getting a so-called 'pension'.
Regardless of our employment, our work is monitored and every action counts. Even if we work part-time or under specific conditions, this time also contributes to our length of service.
And the more work experience we "accumulate", the greater the benefits awaiting us in the future.
It is important to mention that working and contributory service are two different things. They go hand in hand, but they also have significant differences.
Calculation of seniority for time worked
Calculation of seniority is based on the time worked under an employment contract.
Any such calculation shall be carried out in accordance with the Labour Code and the Ordinance on the employment record and the length of service already mentioned.
One full day of work counts if you work at least half of the statutory working hours. It is good to clarify that this time can be spent in more than one employment relationship between an employee and an employer.
Calculation of length of service on a monthly basis is determined differently. ** Monthly seniority is formed when all working days in the month have been worked.** If we have had breaks, we add up the days worked and divide them by the standard number of days for the working month. When working a 5-day week, this is 21 days.
In cases where we work a 6-day week, the number of days into which we have to divide becomes 25.
For the calculation of 1 full year of service, things are simpler. One year of service is calculated when we accumulate 12 months of full service.
If working night shifts and accumulating night seniority, night hours are converted to day hours for shifts with more than 4 night hours. This is done by multiplying by a factor of 1.14, which is the ratio between the official working time for day work - 8 hours and night work - 7 hours. The calculation is then divided by the standard working time.
Are you feeling a bit confused? At first it all seems like a lot of information, a lot of numbers and calculus. The truth is that it all starts with the hours and days worked.
Calculation of length of service for part-time work
What happens if we work 4 or 6 hours? Here comes the catch that many miss. Not just employees, but employers too.
As mentioned just above, if we work at least half the time required by law, we have 1 day of work experience. Accordingly, half of an 8 hour working day is 4 hours.
And that in itself means that if we complete all the working days for the month at the agreed time, that gives us a full month of service. Regardless of fewer hours, the day counts.
Calculating part-time work experience is an extremely important procedure for many students, more committed people and those who may have more than 1 job.
It is therefore important to make sure that the contract and the hours are correctly recorded.
Calculation of length of service under a civil contract
Here comes the other pitfall. If we work on a civil contract, management and control contract or self-employed we do not accumulate work experience.
Wondering why? Usually, people who work on a civil contract carry out relevant work on a fee basis. Often these are people who do freelance work as writers, dancers, etc.
Therefore, in a civil contract, the correlation order - workmanship is present, and it does not carry seniority.
Civil contracts, management and control contracts and self-employment affect the length of insurance. But as already mentioned, it has nothing to do with employment.
Calculation of work experience by the National Social Security Institute
The National Social Insurance Institute (NSI) is the institution that monitors and calculates our length of service. It is based on data submitted by employers and social security contributions.
Upon retirement or other need, the NSSI provides information on the accumulated length of service. If there are gaps or discrepancies, the data must be corrected. This is done with the help of accounting services, and professionals in this field often also perform tax services and audit services.
Therefore, it is good practice to regularly check our employment record and data in the social security system.
Difference between insurance and work experience
Maybe you didn't even suspect that he had both Social Security and work experience. The truth is that both types exist and there is a significant difference between them.
Work experience is associated with the time we have worked on an employment contract for a particular organisation or business.
Social security seniority is the time we have paid social security contributions. The catch is that we can pay our own national insurance without having an employment contract. Therefore, even if you have a civil contract, although you do not "work", your insurance period increases.
It is important to find out the differences so we know what our rights are and how to plan for our future. We recommend that you seek a professional, but before doing so, check with prices for accounting services.