By Resolution No. 07-2021[1], the National Court of Justice declared that as of now, the Labor Division’s opinion regarding the application of paragraph two of article 216 of the Labor Code is mandatory case law, stating that:

Article 216.2 of the Labor Code must be understood as follows: that the employer-paid pension (monthly) shall not be greater than the average consolidated basic remuneration of the employee. For this calculation, one must consider the average monthly remuneration of the last year (adding up the year’s earnings and dividing it by twelve) received by the employee, and not the consolidated basic salary of the average worker, in effect at the time of termination of the employment relationship.

[1] Suscrita por el Pleno de la Corte Nacional el 30 de junio de 2021.

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