What Is a 13-Month Salary?

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A 13-month salary refers to a payment made to employees above their normal salary, usually equivalent to a month’s salary. This type of payment is made as mandated by local law or as part of an employment contract.

As of 2014, Italy, Mexico, Nicaragua, Chile, Columbia, Argentina, the Philippines and Brazil are countries that require employers to pay employees a 13-month salary. In these countries, the disbursement of this payment is required to be done in December. The amount of the payment is calculated differently by each country. In France, a 13-month salary is not required by law but is customarily included in work contracts.