# 13th month salary

> A mandatory extra payment, equal to roughly one month's wages, that employers in many countries must pay employees each year on top of their regular salary.

A 13th month salary is a legally required additional payment that employers in dozens of countries must make to employees each year, separate from their regular monthly wages. The amount is usually equivalent to one month's basic salary, though the exact calculation, payment deadline, and eligibility rules differ by country. In some markets, like Mexico, the statutory minimum is 15 days of salary rather than a full month. In others, like Italy, the payment is built into the annualised salary structure rather than added on top. The 13th month payment is not a discretionary bonus. Where the law requires it, employers must make the payment regardless of company performance, and employees earn a proportional amount if they have not completed a full year of service. When you hire internationally, missing or miscalculating this payment is one of the most common payroll compliance errors, and can trigger penalties, back-pay claims, and employment disputes. Understanding which markets require it, and exactly how it is calculated, is an essential part of running a global payroll correctly.

## Which countries require a 13th month payment?

Over 40 countries mandate some form of 13th month pay, including Brazil, Mexico, the Philippines, Italy, Indonesia, and much of Latin America and South-East Asia. Requirements vary: some impose a full extra month, others a partial amount. Several countries also require a 14th month payment.

The obligation is set in statute or national collective agreements, so it applies to all covered employees regardless of what their individual contract says. Where a contract already includes a guaranteed annual bonus of equivalent value, some jurisdictions allow that to count toward the obligation, but you should get local legal confirmation before treating it that way.

## How is the amount calculated?

The most common formula is: total basic salary earned in the year divided by 12. Employees who join mid-year receive a proportional share, based on the number of complete months worked. Overtime, allowances, and commissions are usually excluded from the base, though this varies.

In Mexico, the statutory floor is 15 days of base salary, so the minimum payment is roughly half a month rather than a full one, though many employers pay more. Always base the calculation on the jurisdiction's specific definition of 'basic salary', as including the wrong pay components is a frequent compliance error.

## When must the payment be made?

Deadlines differ by country. In the Philippines, payment must reach employees by 24 December. In Brazil, employers split the payment into two instalments: the first by 30 November and the second by 20 December. In Mexico, the deadline is 20 December.

Missing a statutory deadline can result in fines and back-pay obligations. Some countries also require the first instalment to be paid much earlier in the year, typically between January and November, so the year-end date is not the only deadline to track.

## What happens if an employee leaves before the payment date?

In most countries, employees who leave part-way through the year are still entitled to a proportional 13th month payment, calculated on the months they worked. This applies whether they resign or are made redundant, though the exact rules on timing and calculation depend on local law.

## Key facts

- **Philippines: legal basis:** Presidential Decree No. 851 (1975) (Source: Official Gazette of the Republic of the Philippines, verified 2026-06-24)
- **Mexico: statutory minimum:** 15 days of base salary (Article 87, Federal Labour Law) (Source: payrollmexico.com, verified 2026-06-24)
- **Brazil: legal basis:** Lei No. 4.090 (1962) (Source: Planalto (Brazilian government legislative portal), verified 2026-06-24)

## 13th month pay: country comparison

| Country | Local name | Amount | Deadline | Legal basis |
| --- | --- | --- | --- | --- |
| Philippines | 13th month pay | 1/12 of annual basic salary | 24 December | Presidential Decree No. 851 (1975) |
| Brazil | Décimo terceiro (13º salário) | One month's base salary, paid in two instalments | 1st by 30 Nov, 2nd by 20 Dec | Lei No. 4.090 (1962) |
| Mexico | Aguinaldo | Minimum 15 days of base salary | 20 December | Article 87, Federal Labour Law |
| Italy | Tredicesima | One month's salary (accrued through the year) | Before 20 December (typically) | National collective bargaining agreements |

## Frequently asked questions

### Is the 13th month salary the same as a Christmas bonus?

Not exactly. A Christmas bonus is discretionary: employers choose whether to pay it and how much. A 13th month salary is a statutory right in countries where the law requires it. You must pay it regardless of company performance, and employees can take legal action if you do not.

### Do employees on probation receive a 13th month payment?

In most countries with mandatory 13th month rules, yes. Employees typically accrue the payment from their first month of service and receive a proportional amount at year-end or when they leave. However, the exact rule varies by jurisdiction, so confirm locally before assuming probation affects eligibility.

### Does a discretionary annual bonus count toward the 13th month obligation?

Sometimes, but not automatically. In some markets a guaranteed annual bonus of equivalent value can satisfy the statutory requirement. In others, the 13th month must be paid separately regardless of any other bonus. Always take local legal advice before assuming an existing bonus counts.

### How does global employment help with 13th month compliance?

When you employ people through a global employment platform in a country with a mandatory 13th month rule, the platform tracks the obligation, calculates the correct amount, and ensures payment reaches employees before the statutory deadline, as part of the managed payroll service.

## Sources

- [Presidential Decree No. 851, s. 1975](https://www.officialgazette.gov.ph/1975/12/16/presidential-decree-no-851-s-1975/), Official Gazette of the Republic of the Philippines
- [Lei No. 4.090, de 13 de Julho de 1962](https://www.planalto.gov.br/ccivil_03/leis/l4090.htm), Planalto (Brazilian government)
- [Mandatory Christmas Bonus in Mexico (Aguinaldo Guide)](https://www.payrollmexico.com/insights/mandatory-aguinaldo-christmas-bonus-mexico), Payroll Mexico
- [Tredicesima: What is the 13th salary in Italy and how is it calculated?](https://www.thelocal.it/20221214/tredicesima-what-is-the-13th-salary-in-italy-and-how-is-it-calculated), The Local Italy

_Last updated 2026-06-24. Reviewed by Teamed's in-house employment-law team. Source: https://www.teamed.global/glossary/13th-month-salary_