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Global Work Glossary

Lost in a maze of global employment jargon? Find your way out with our handy collection of work and HR terminology

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14th-month pay

What is 14th-month pay, and where is it common?

14th-month pay is an extra payment that is given to employees on top of their annual salaries. Sometimes known as the end-of-year bonus, this payment is usually given in December and intended to support people through the holiday season. The benefits of 14th-month pay include employee retention and motivation.

Sometimes mandatory and sometimes discretionary depending on the country employees are working in, 14-month pay is common across the globe. For example, it is currently advised for jobs at managerial levels in Greece, Austria, and China.

There is no standard practice for how 14-month pay works. Sometimes it will amount to an extra month of an employee’s annual salary, but other times it is based on performance. To determine whether and how you should pay 14-month pay to international employees, you should use HR software like Multiplier. This will automatically notify you of relevant payments, calculate the appropriate amounts and facilitate seamless payments, ensuring compliance with local regulations and global standards.

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