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What Are the Differences in Seniority & Longevity Pay?

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Seniority and longevity are based on how long someone has worked at a job or with an employer. Someone who has worked for 20 years may have 20 years of seniority; if he receives longevity pay, his rate will be based on those 20 years of service. However, seniority is also used in benefit and management decisions.

Seniority

Seniority systems give preference to employees who have been with the employer, profession or job for the longest period of time. Those with higher seniority have first choice of desirable shifts, transfers and assignments. Seniority can be used to determine promotions. Union contracts sometimes base employment protection on seniority, laying off those with lower seniority before those with greater seniority.

Longevity Pay

Longevity pay is based on duration of employment. Employers have the option of adding performance or merit bonuses to the base longevity pay.

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Similarities

Longevity pay and seniority are commonly used by unions and for government service employees. Longevity pay can also be used to give higher pay to those who have earned seniority in a lower pay grade.

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My expertise includes product data management software. I provide first and second level technical support for this class of software as well as write FAQs, user manuals and troubleshooting guides for first level staff. My personal finance expertise has been showcased repeatedly on "The Dollar Stretcher" frugal living website and magazine.

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