What is longevity pay?

Longevity pay refers to additional compensation that is provided to employees who have been with a company for a certain period of time. This type of pay is often provided as a way to recognize and reward employees for their loyalty and dedication to the organization. Longevity pay can take a variety of forms, including bonuses, salary increases, or additional vacation time. The specific terms and conditions of longevity pay vary from company to company and may be included as part of a collective bargaining agreement or employment contract. In some cases, longevity pay may be tied to specific job grades or levels, with employees at higher levels receiving a larger amount of additional compensation.