4.04.23: Longevity Payments

Longevity payments are additional wages given based on length of service. These payments are generally reportable.  To ensure that the payment is properly classified as a longevity payment, an explanation of the payment should be included in the contract or bargaining agreement, including the frequency of the payment, the date the payment is made, and the schedule of the amount of longevity pay rewarded based on length of service (if multiple tiers of longevity pay are available).  Please contact ORS if you have any questions about the reportability of a payment.

Examples of reportable compensation:

  • Annual longevity payment given based on length of service

Examples of nonreportable compensation:

  • One time payment upon termination of employment based on length of service

  • Remuneration paid for the specific purpose of increasing the final average compensation

Last updated: 09/29/2020