13th Month Pay
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A mandatory or customary extra month's salary paid to employees, typically at the end of the year, in addition to the standard 12 monthly payments.
## 13th Month Pay
13th month pay is an extra salary payment — equivalent to one month's basic wages — paid annually, usually in December. In many countries it is a legal requirement; in others it is a common contractual benefit.
### Legal Requirements by Country
| Country | Mandatory? | Amount | Timing |
|---------|-----------|--------|--------|
| Philippines | Yes (PD 851) | 1/12 of annual basic salary | On or before Dec 24 |
| Brazil | Yes (CLT) | 1 month's salary | Half in Nov, half in Dec |
| Mexico | Yes (Aguinaldo) | Min. 15 days' salary | Before Dec 20 |
| Italy | Yes | 1 month (Tredicesima) | December |
| Spain | Yes | 2 extra payments (14th month too) | June & December |
| Germany | No (contractual) | Common in collective agreements | November/December |
| US/UK | No | Not customary | N/A |
### Tax Treatment
In most countries, 13th month pay is subject to the same income tax and social security rules as regular salary. The Philippines exempts the first ₱90,000 from tax.