Longevity Pay

Longevity Pay

The higher pay one earns for remaining at the same company for a certain period of time. For example, one may receive a raise after six months, one year, two years and so forth. Proponents of longevity pay believe it encourages stability and lowers the employee turnover rate. Critics contend longevity pay discourages innovation by rewarding those who take few risks and are merely "good enough" to stay.
References in periodicals archive ?
The time in service to qualify for longevity pay increases was reduced to 15 years and 20 years of service (previously, 20 and 25).
Stock options of 2400 shares per member over the term of the agreement; * The highest longevity pay in the industry; * Maintenance of health benefits.
Melia said before selectmen went into executive session that it will be the first time non-union employees have been offered the longevity pay he said is offered by other communities.
Maximum annual longevity pay was boosted to $16,750 (from $4,960) in January 1990, progresses to $22,000 in March 1991, to $23,000 in September 1991, and to $25,000 in October 1992.
Longevity pay is additional compensation given to city employees for years of service.
Note that a "zero increase" does not refer to the automatic step and longevity pay increases for teachers (or any other represented group of employees), but any raise they may bargain for in addition to those automatic annual increases.
3) Special pays, to include but not be limited to: longevity pay, incentives, shift differentials, educational or
The contract introduces a different step system for longevity pay increases, improves medical coverage with no additional cost to employees, refers several work rules in dispute to arbitration, and reinstates the union shop provision, which had been dropped under the imposed contract.
However, add in benefits - including an educational incentive, a medical trust, retirement pickup, longevity pay, uniform allowance, deferred compensation, Social Security contributions, holidays and vacation, and cash back for unused vacation - and Ventura County deputies and sergeants earn the most.
Other wage provisions included a 5-year pay progression schedule from starting to maximum wage rates for new officers, replacing a 3year schedule; annual longevity pay, ranging from $1,000 after 5 years of service to $4,000 after 20 years, up from a $300 to $600 range.
Longevity pay was also raised, in steps; after the final step in 1991, rates will be $108 a month for officers with 10 to fewer than 15 years of services, $220 for those with 15 to fewer than 20 years, and $332 for 20 years of service or more.
Daring estimated the 1 percent salary increases, plus longevity pay for some teachers, will cost the district roughly $218,000.