All you need to know about 13th & 14th Month Pay
We all know there are 12 months in a year irrespective of where you are on the planet but if you have ever dealt with global payroll, you must have come across 13th or 14th month pay. Ever wondered what are these 13th and 14th month?
We believe it is important for you to know the 13th and 14th month pay if you hire foreign employees, even though the practice may not be common in the jurisdiction that you operate in. If you don't pay employees 13th and 14th month pay in countries where it is a regulatory requirement, then you may be guilty of non-compliance resulting in financial penalties.
We are covering the different aspects of the 13th and 14th month pay to enable you to understand the intricacies and ensure compliance with the regulations as applicable to your business.
What is the 13th month and 14th month pay?
Historically, during twentieth century, voluntary donation by employer to their employees without any obligation during Christmas was introduced in Europe. For instance, in Italy it was originally named 'Gratifica Natalizia' (Christmas bonus).
Source: https://www.ramco.com/blog/pay....roll/all-you-need-to
