13th-month salary

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13th-month salary

The 13th-month salary, also known as the Christmas bonus or end-of-year bonus, is an additional payment given to employees by their employer at the end of the year. It is typically equivalent to one month’s salary and is considered a form of bonus or incentive for employees. This payment is not mandatory and is usually given at the discretion of the employer. The purpose of the 13th-month salary is to provide employees with extra financial support during the holiday season and to recognize their hard work and contributions throughout the year. It is often included in employment contracts or collective bargaining agreements and is subject to the same taxes and deductions as regular salary. The eligibility for the 13th-month salary may vary depending on the company’s policies and an employee’s length of service. It is important to note that the 13th-month salary is different from a performance bonus, which is based on an employee’s individual performance rather than a fixed amount.