A Global Guide to 13th Month Salary Payments
When dealing with international payroll, you will undoubtedly encounter terms such as ‘Christmas bonus’, ‘year-end bonus’ and ‘holiday pay’. However, the concept of a 13th month payment may be unfamiliar to some; particularly those based in the UK and USA. While many private-sector companies may offer discretionary, performance-based bonuses, in certain countries, the reference to a 13th month – and in some cases, a 14th month – salary represents additional compensation granted to employees.This compensation can be mandated by local labor laws or observed as a customary practice by employers.The intricacies of the 13th month salary and the expectations surrounding these additional payments vary greatly depending on the country in question.Navigating this can be somewhat challenging for employers when hiring internationally. Therefore, it is essential to budget accordingly to ensure all employee entitlements are met and comply with local labor legislation.
