13th Month Pay
What is 13th Month Pay?
13th Month Pay, also known as a Thirteenth Salary, is an additional salary payment provided to employees at the end of the year. It is typically a contractual requirement rather than a performance-based bonus.
Benefits to Employer
Paying a 13th Month Salary can enhance employee loyalty and satisfaction. It can improve retention by encouraging employees to stay within a company. For employers that are competing for talent against the public sector, it can strengthen their reputation as a desirable workplace. Offering a structured annual bonus also helps manage payroll budgets more effectively.
Benefits to Employee
A 13th Month Pay provides immediate financial benefit and security. Traditionally, the timing of the payment helps employees manage additional costs during the holiday season. It can make employees feel valued and rewarded for their work across the year.
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Ben is easily the most engaged initiative we’ve ever had. It gets everything to everyone in different locations, and I can’t even tell you how much time it’s saved us.
