13th & 14th Month Pay by Country: The 2026 Employer Guide

You budget twelve monthly salaries for your first hire in Brazil, then find a thirteenth is owed by law, on a fixed December date, with penalties if you miss it. In Mexico it is the aguinaldo. In the Philippines it is 13th month pay. In Portugal there are two extra payments, not one. None of these is a bonus you can choose to skip. They are statutory wages.

The mistake runs both ways. Treat a mandatory 13th month as optional and you have breached local labor law and owe back pay. Treat a customary one as mandatory, which is the norm across Western Europe, and you overpay and lock in an expectation you cannot easily walk back. Knowing which is which, country by country, is what decides your exposure.

This reference maps it country by country: who owes a 13th, who adds a 14th, how much, when, and how it is taxed. We run global payroll and Employer of Record across more than 150 countries, so the tables below reflect how the rules actually reach a payslip, not just what the statute says.

1. What 13th and 14th month pay actually is

A 13th month is one extra month of salary paid once a year, on top of the usual twelve. The name is just arithmetic: thirteen months of pay across a twelve-month year. A 14th month is a second such payment, usually pegged to a different date so the two fall in different halves of the year.

What matters is not the name but the legal status. Every country sits in one of three regimes:

• Mandatory. A statute, or in a few countries a binding national agreement, requires it. The amount, deadline and eligibility are set by law, and a missed deadline means penalties. Most of Latin America, southern Europe and two Southeast Asian markets fall here.
• Customary. No law requires it, but it is widespread, usually through a sector or company collective bargaining agreement (CBA). It binds you only once it is in a contract, a CBA, or an established practice. This is Western and Central Europe and most of the developed Asia-Pacific.
• None. No 13th month, and any year-end bonus is discretionary. The US, UK, Canada, Australia and the Gulf sit here.

The customary bucket is where employers slip. "Everyone pays it" is not the same as "the law compels it," and that difference decides whether skipping it is a breach or a choice.

2. The global map: mandatory, customary, or none

The table below groups the major hiring markets by regime. The regional sections that follow give the amount, the deadline and the 14th-month position for each country.

Note: All contribution rates, thresholds, and figures reflect publicly available guidance as of July 2026.

Two things the table doesn’t show. Poland mandates a 13th month in the public sector only. And a few countries, including the Netherlands, Slovenia, Australia and the Gulf, have a mandatory annual payment that is not a 13th month and does not replace one. Section 7 handles those.

3. Latin America: the strictest region

Latin America mandates a 13th month more consistently, and enforces it harder than anywhere else. Almost every country requires it, most call it the Aguinaldo, and several add a full second month.

Brazil's décimo terceiro comes in two installments, with income tax and social security taken out of the December one.¹ Mexico sets a floor of 15 days' salary under Article 87 of the Federal Labor Law, due before 20 December. Most employers pay 30 days, but 15 is the legal minimum.²

Argentina's Sueldo Anual Complementario is half the highest monthly salary in each semester, on fixed June and December dates.³ Colombia's prima de servicios is a full month, split across June and December, and a 2016 law pulled domestic workers and drivers into it.⁴

Four countries run a real 14th month. Peru pays two full-month gratificaciones, so a full year earns fourteen months of pay.⁵ Ecuador splits them: a 13th at one-twelfth of pay, and a 14th fixed at USD 482 for 2026 regardless of salary.⁶ Guatemala adds Bono 14 in July, and Honduras pays its fourteenth in June.⁷ ⁸

There are two outliers worth noting. Bolivia's second aguinaldo only triggers when GDP growth tops 4.5%, which recent years have missed, so it sits dormant on the books.⁹ Chile is the exception: no statutory 13th month at all, and the mandatory gratificación legal it does have is a profit share, not a fixed month of pay.

4. Europe: mandatory in the south and customary in the west

Europe splits cleanly. The south writes a 13th, and often a 14th, into law or into a near-universal agreement. On the other hand, the west and north treat it as custom, binding only through a contract or CBA.

Southern Europe: statutory or effectively universal

• Portugal owes two full months: a subsídio de Natal (Christmas subsidy, Article 263) and a subsídio de férias (holiday subsidy, Article 264), the Christmas one due by December 15. Miss it and it is a serious labor infraction.¹⁰ Spain requires two pagas extraordinarias under Article 31 of the Workers' Statute, one at Christmas and one set by the sector agreement.¹¹
• Greece is the fullest case: a full month at Christmas, half a month at Easter and half before summer leave, close to two extra months a year. This is private-sector only. The public-sector versions died in the 2012 crisis and never came back.¹²
• Italy's tredicesima is set by national sector agreements rather than a single statute, but it covers essentially every private-sector worker, so treat it as mandatory. The quattordicesima, or 14th, depends on the specific agreement.¹³
  
• Malta is the odd one out: its mandatory extra pay is four fixed statutory sums totaling about EUR 512.52 a year, real but far smaller than a month's salary.³²

Western, Northern and Central Europe: customary

Across Germany, Austria, Switzerland, France, Belgium, the Nordics and much of Central Europe, no statute requires a 13th month. It is common, but it binds you only through a collective agreement, a contract, or a settled practice.

• Germany's Weihnachtsgeld reaches about half of all employees and becomes binding once it is in an agreement or contract, or after three years of paying it.¹⁴
• Austria delivers a 13th and 14th to most workers through industry agreements, taxed at a favorable flat rate under the "annual sixth" rule.¹⁵
• France's treizième mois is not in the Code du travail, but it is compulsory wherever the sector convention collective sets it, so the answer depends on the branch.

There are also two traps here. Poland is not a blanket 13th-month country: the extra annual salary is mandatory for public-sector staff only, and private bonuses are discretionary.¹⁷ One market worth addressing here, since its US affiliation often leads to misclassification: Puerto Rico, a US territory, does mandate a Christmas bonus, up to 2% of wages, capped at USD 600 and lower at small employers, paid between 15 November and 15 December. That is why the US answer is "no federally, yes in Puerto Rico."¹⁸

5. Asia-Pacific: two mandates, the rest by custom

Only two Asia-Pacific economies mandate a broad 13th month, and India adds a narrower statutory bonus. Everywhere else it is customary, though in several markets it is so entrenched that skipping it is commercially unthinkable.

The Philippines is the clearest mandate anywhere. Under Presidential Decree 851, every rank-and-file employee with at least a month of service is owed one-twelfth of basic annual salary by 24 December.²⁰ It is tax-free up to a combined PHP 90,000 under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.³¹

Indonesia's Tunjangan Hari Raya (THR) is one month's wages after a year of service, paid at least seven days before the employee's religious holiday. Pay late and there is a 5% fine.²¹ India is narrower still: the Payment of Bonus Act sets 8.33% to 20% of wages, but only for employees under a wage ceiling at firms with 20 or more staff, paid within eight months of year-end.²²

"Customary" here does not mean rare. Japan runs two bonuses a year, summer and winter, each often worth one to several months. Neither is statutory, but both are near-universal and enforceable once they sit in work rules or a CBA.²⁴ China's year-end bonus, usually a month before Lunar New Year, is not required by law, but it gets a preferential separate tax calculation, now extended to the end of 2027.²³

Singapore's Annual Wage Supplement is the local 13th month, but the Ministry of Manpower makes it clear that it’s not compulsory unless the contract requires it.²⁵ Hong Kong treats "double pay" as a contractual end-of-year payment once it exists, with pro-rata rules that favor dismissed staff over those who resign.²⁶ Malaysia is the same shape: customary under the Employment Act 1955, though a CBA can make it compulsory in sectors like manufacturing and plantations.¹⁹

6. Africa and the Middle East

Mixed. A couple of African markets mandate a 13th month, several treat it as strong custom, and the Gulf has none, though it does require an end-of-service benefit that people keep confusing for one.

Angola mandates two subsidies, holiday and Christmas, each 50% of base monthly salary, under a General Labour Law rewritten in 2023, so older guides are out of date.²⁹ Cote d'Ivoire owes a 13th-month gratuity through its national interprofessional agreement.

The Gulf is the sharpest correction. Saudi Arabia and the United Arab Emirates have no statutory 13th month, and any bonus is discretionary.²⁷ Both require an End-of-Service benefit, but that is a service-based payment made when employment ends, a severance, not an annual top-up. Treating it as a 13th month gets both the timing and the math wrong.²⁸ Israel is similar: no statutory 13th month, but a mandatory annual Recuperation Pay (Dmei Havra'a), a per-day sum scaled by seniority, paid in summer.³⁰

7. Payments that look like a 13th month but are not

Some countries have a mandatory annual payment that is easy to mistake for a 13th month. It is not, and paying a 13th month does not clear the separate obligation. These are the traps that cause both underpayments and double payments.

• Netherlands, the 8% holiday allowance. Dutch law requires vakantiegeld, at least 8% of gross annual salary, paid as a lump sum in May or June. Mandatory, but a holiday allowance, not a 13th month. A true Dutch 13th month is voluntary, and the 8% does not cover it.¹⁶
• Slovenia, the holiday allowance (regres). At least the minimum wage, due by 1 July. A distinct entitlement, not a 13th-month salary.
• Australia, leave loading. Employees often get annual leave loading on holiday pay. Not a 13th month, and Australia has none.
• Belgium, double holiday pay. The statutory double pécule is separate from the end-of-year bonus that sector CBAs provide.
• Chile, the gratificación legal. A share of company profit, not a fixed month, and there is no statutory Christmas 13th month.
• Gulf end-of-service pay. Severance settled at termination, not an annual supplement.

In any of these markets, budget the mandatory item on its own and decide the 13th month separately.

Not sure which of these obligations apply to your headcount? Talk to our team and we'll map your exact exposure by country.

8. How to calculate 13th and 14th month pay

Most mandatory 13th months come down to one formula: one month of pay, or one-twelfth of annual earnings, pro-rated for anyone who did not work the full period. Two things move the number: the base and the pro-ration.

• The base: Some countries count basic salary only, stripping out overtime and allowances. The Philippines is the clean example: one-twelfth of basic pay. Others count total remuneration, including commissions and regular allowances, like Costa Rica and Paraguay. Use gross where the law says basic, or the reverse, and you are wrong across every employee at once.
• Pro-ration: A full year earns the full amount. A mid-year starter or leaver earns a fraction, usually by complete months. Take someone on USD 60,000. A full-year 13th month is one-twelfth, so USD 5,000. Start them in June, at seven of twelve qualifying months, and you owe seven-twelfths, about USD 2,917. The same math applies on the way out, which is why a pro-rated 13th month is a standard line in a final settlement. Our termination laws guide and offboarding checklist cover where it fits the exit sequence.
• Fixed-sum regimes: A few countries skip the one-month formula. Malta pays fixed statutory sums, India a capped percentage, and Ecuador's 14th month is a flat figure regardless of salary. There, the statute's math wins.

9. Tax treatment and the mistakes that cost the most

A 13th month is usually taxable as income, but the exemptions are specific. The Philippines exempts 13th month pay plus other benefits up to a combined PHP 90,000, then taxes the rest.³¹ Mexico exempts part of the aguinaldo before the surplus is taxed. Several Latin American countries, including Costa Rica, Nicaragua and Bolivia, exempt it entirely, while Brazil and Uruguay tax it in full and Argentina taxes it above a floor.

The errors that cost the most are the same everywhere:

• Missing the statutory deadline. These are legal dates, not targets. The Philippines' 24 December, Mexico's 20 December and Portugal's 15 December are enforced, and late payment draws penalties.
• Using the wrong base. Gross where the law says basic, or dropping allowances the law includes, breaks every payslip the same way.
• Forgetting pro-ration on exit. A leaver is usually owed a pro-rated 13th month in final pay, and it is one of the most common underpayments an ex-employee will chase.
• Confusing a holiday allowance with a 13th month. The Dutch 8% and the Gulf gratuities are separate obligations. Netting them against a 13th month leaves a gap.
• Treating contractors as entitled. A 13th month is an employee entitlement, so genuine contractors do not get one. A misclassified contractor, though, can later claim it in a reclassification. Our contractor and employee pay comparison draws the line, and our Contractor Management service keeps it clean.

For the wider set of withholdings that ride alongside a 13th month each cycle, our payroll tax compliance guide covers the mechanics country by country.

10. How Slasify handles 13th and 14th month pay

Where a 13th or 14th month is mandatory, we run it end to end: the correct statutory base, pro-ration for partial years and leavers, payment on the legal date, and the right withholding and reporting per country. Under Employer of Record, we do it inside our own local entity, so a company hiring in Brazil or the Philippines carries no entity and no exposure to a missed date. Under Global Payroll, we run the same on a company's own entities. Payroll data sits under our ISO 27001-certified controls.

Where the payment is only customary, we flag it as a number to budget for, not a legal duty, so you decide with the full picture instead of learning the market norm after the offer is out.

"Slasify helped us scale in Vietnam, Philippines, Indonesia, and Malaysia. Their local knowledge and execution saved us time and costs." - Head of Operations, Astro Malaysia Holdings Berhad

We cover payroll and hiring in over 150 countries and 130-plus currencies for more than 900 companies, backed by a network of 600+ local partners on the ground, which is what lets a mandatory 13th month in Manila and a customary bonus in Kuala Lumpur run through one process instead of four local accountants.

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Request a demo and see where your headcount actually sits against our coverage.

Frequently asked questions

Which countries require 13th month pay?

Around 28 countries mandate a 13th month. Latin America has the largest cluster, covering nearly every market in the region. Southern Europe adds Portugal, Spain, Greece, Italy and Malta. In Asia-Pacific, the Philippines and Indonesia have broad mandates; India has a narrower statutory bonus. In Africa, Angola and Cote d'Ivoire require it. The full breakdown by regime is in the table at the top of this guide.

Does the United States have 13th month pay?

No. There is no federal or state law requiring a 13th month, and any year-end bonus is discretionary. The one exception is Puerto Rico, a US territory, which mandates a statutory Christmas bonus paid between 15 November and 15 December.

Does China have a 13th month?

Not by law. No national statute requires a 13th-month or year-end bonus, but a one-month bonus paid before Lunar New Year is a widespread market practice. Once it is written into an employment contract, it becomes legally binding.

Does Japan have 13th month pay?

Not as a statutory 13th month. Japan instead runs a customary two-bonus system, a summer bonus around June and a winter bonus in December, each often worth one to several months of salary. Neither is required by law, but both are near-universal and become enforceable through work rules or a collective agreement.

Is 13th month pay a bonus?

It depends on the country. Where it is mandatory, it is a statutory wage, not a discretionary bonus, and it cannot be withheld. Where it is customary, it works like a guaranteed bonus once a contract or collective agreement fixes it.

How is 13th month pay calculated?

The default is one month of salary, or one-twelfth of annual earnings, pro-rated for anyone who worked less than the full qualifying period. The base varies: some countries use basic salary only, others use total remuneration, and a few, such as Malta and India, use a fixed sum or a capped percentage instead.

Is 13th month pay taxable?

Usually yes, as employment income. Some countries exempt it up to a threshold, such as the Philippines at PHP 90,000 combined with other benefits. Several Latin American countries, including Costa Rica and Nicaragua, exempt it entirely.

Do contractors get 13th month pay?

No. A 13th month is an employee entitlement, so genuine independent contractors are not owed one. The risk is misclassification: a worker treated as a contractor but functioning as an employee can later claim the 13th month in a reclassification. We keep that line clean through our Contractor Management and Employer of Record services.

Get 13th month pay right in every market

A 13th month is one of the few payroll obligations that is both large and easy to miss, because it never shows on a monthly payslip and the rules change at every border. Budget a full extra month where it is mandatory, know which markets add a fourteenth, and keep the statutory deadlines in view.

If you are hiring across several of these countries, don’t wait for a missed December deadline to find out where you’re exposed. Request a demo and we can map your footprint against our Employer of Record and Global Payroll coverage, including where a 13th or 14th month is owed and when.

Sources

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2. PROFEDET / gob.mx, Aguinaldo before 20 December (Ley Federal del Trabajo, Art. 87), Mexico. gob.mx
3. Ministerio de Trabajo (argentina.gob.ar), Aguinaldo / Sueldo Anual Complementario, Argentina. argentina.gob.ar
4. Secretaría del Senado, Código Sustantivo del Trabajo Art. 306 (prima de servicios), Colombia. secretariasenado.gov.co
5. Congreso de la República del Perú, Ley N° 27735 (gratificaciones), Peru. congreso.gob.pe
6. Ministerio del Trabajo del Ecuador, Salario Básico Unificado 2026 (USD 482), Ecuador. trabajo.gob.ec
7. Ministerio de Cultura y Deportes (mcd.gob.gt), Bono 14 (Decreto 42-92), Guatemala. mcd.gob.gt
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15. USP.gv.at (Austrian government business portal), Special payments (Sonderzahlungen), Austria. usp.gv.at
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17. ISAP (Sejm), Ustawa z 12 grudnia 1997 r. o dodatkowym wynagrodzeniu rocznym dla pracowników jednostek sfery budżetowej (public-sector 13th, 8.5%), Poland. isap.sejm.gov.pl
18. Jackson Lewis, Christmas Bonus Compliance for Puerto Rico Employers (Act 148 of 1969), Puerto Rico. jacksonlewis.com
19. Ministry of Human Resources (MOHR) / Employment Act 1955, Malaysia. jtksm.mohr.gov.my
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21. Peraturan BPK, Permenaker No. 6 Tahun 2016 (THR / Religious Holiday Allowance), Indonesia. peraturan.bpk.go.id
22. Ministry of Labour & Employment, Payment of Bonus (Amendment) Act, 2015, India. labour.gov.in
23. China Briefing (Dezan Shira & Associates), Preferential tax for the annual one-time bonus extended to end-2027, China. china-briefing.com
24. Japanese Law Translation, Labor Standards Act (bonuses as ad-hoc special wages), Japan. japaneselawtranslation.go.jp
25. Ministry of Manpower (MOM), Variable wage components (Annual Wage Supplement), Singapore. mom.gov.sg
26. Hong Kong Labour Department, Employment Ordinance (Cap. 57), End of Year Payment, Hong Kong. labour.gov.hk
27. Ministry of Human Resources and Social Development (HRSD), End-of-Service Award, Saudi Arabia. hrsd.gov.sa
28. UAE Ministry of Human Resources & Emiratisation (MOHRE), Federal Decree-Law No. 33 of 2021, United Arab Emirates. mohre.gov.ae
29. Lexology In-Depth: Employment Law 2024, Angola (Law No. 12/23), Angola. alcadvogados.com
30. CWS Israel, Understanding Recuperation Pay in Israel, Israel. cwsisrael.com
31. Bureau of Internal Revenue (BIR), 13th month pay and other benefits tax-exempt up to PHP 90,000 under Republic Act 10963 (TRAIN Law), Philippines. bir.gov.ph
32. Department of Industrial and Employment Relations (DIER), Bonus and Weekly Allowances (statutory bonuses, about EUR 512.52/year), Malta. dier.gov.mt