13th-month pay is an extra month’s salary that many countries require or customarily pay, usually at year-end. It goes by names like aguinaldo, Christmas bonus, or décimo. Whether you owe it depends entirely on the country: some make it mandatory, some leave it to custom, and some do not practise it at all.
Last updated July 18, 2026. Jump to: What it is · How it works · The country table · What it costs you · With an EOR · FAQ
What is 13th-month pay?
13th-month pay is a payment equal to one extra month of salary, paid on top of the twelve monthly wages. It is common across Latin America, southern Europe, and parts of Asia and Africa. Some countries also pay a 14th month.
The rules split into four clear treatments, and the table below sorts every country in our guides into one of them:
- Mandatory — the law requires it. Skipping it is a breach.
- Customary — not required by law, but widely paid, so staff expect it.
- Collective agreement — set by sector or union deals rather than a single national law.
- Not practised — no such payment is normal in that country.
The label on the payment matters less than the duty behind it. A Christmas bonus in one country is a firm legal right; the same words elsewhere are just a nice-to-have. Always check the country before you budget.
How does 13th-month pay work?
The amount is usually one month of base salary, or one-twelfth of the year’s basic pay. In the Philippines, for example, our guide sets it at one-twelfth of total basic salary earned in the year, prorated for anyone who worked less than a full year.
Timing varies by country. Some pay it once, near year-end. Others split it into two installments:
- One year-end payment — Mexico pays its aguinaldo before December 20; the Philippines pays on or before December 24.
- Two installments — Argentina pays at the end of June and the end of December; Brazil pays by November 30 and December 20; Colombia pays half by June 30 and half by December 20.
- A 14th month too — Peru, Portugal, Greece, and Spain add a second bonus payment on top of the 13th, often mid-year and year-end.
These figures are from our country guides, checked July 2026. Each country’s guide sets out the exact base, timing, and any service threshold.
13th month vs 14th month
A 13th month is the first extra payment — one added month across the year. A 14th month is a second extra payment on top of that. Countries that pay a 14th usually split the two across the calendar: one bonus mid-year, one at year-end.
Our guides show a 14th month in Peru (July and December), Portugal (a holiday subsidy plus a Christmas subsidy), and Spain (two bonus payments inside its 14-payment year). Greece pays a Christmas bonus, an Easter bonus, and a summer allowance, which together work like a 13th and 14th. In Austria and Italy, the second payment is tied to collective agreements rather than a single national rule, so it can vary by sector.
Which countries require 13th-month pay?
The table sorts every country in our guides that has 13th-month data into its treatment. Each country name links its full guide, where the exact rules sit. Countries where our guides say nothing about a 13th month are not listed — see the note below the table.
| Country | Treatment | What our guide says |
|---|---|---|
| Argentina | Mandatory | Aguinaldo (SAC) is required, paid in two equal installments — end of June and end of December. |
| Austria | Collective agreement | Employees are "typically entitled to two additional salary payments per year" — holiday pay and a Christmas bonus (13th and 14th). |
| Belgium | Customary | A 13th-month, end-of-year bonus is listed as a common additional benefit. |
| Brazil | Mandatory | 13th-month salary (décimo terceiro) is a "mandatory annual bonus," paid by November 30 and December 20. |
| Chile | Customary | Aguinaldos (holiday bonuses) are a common additional benefit, separate from the statutory profit gratification. |
| Colombia | Mandatory | The 13th-month salary (prima de servicios) is required, paid 50% by June 30 and 50% by December 20. |
| Germany | Customary | A Christmas bonus or 13th-month pay is listed as a common additional benefit. |
| Greece | Mandatory | Workers are "legally entitled to a Christmas bonus, Easter bonus," and summer allowance — a 13th and 14th in effect. |
| Indonesia | Mandatory | THR (holiday allowance) of one month’s salary is mandatory for staff with 12+ months’ service; the 13th-month equivalent. |
| Italy | Mandatory (14th by CBA) | A "mandatory 13th month salary," and "often a 14th under collective agreements." |
| Malta | Mandatory | Employees are entitled to statutory bonuses "paid in line with government-set rates," on top of salary. |
| Mexico | Mandatory | Aguinaldo (Christmas bonus) of at least 15 days’ salary, paid before December 20. |
| Nigeria | Customary | A 13th-month salary is "common in practice," listed as an additional benefit. |
| Peru | Mandatory | Two bonuses (gratificaciones): one month in July and one month in December (13th and 14th). |
| Philippines | Mandatory | 13th-month pay — one-twelfth of basic annual salary — paid on or before December 24. |
| Portugal | Mandatory | Christmas subsidy (13th month) and holiday subsidy (14th month), "both mandatory." |
| Spain | Mandatory | Staff are "legally entitled to 14 payments per year" — 12 monthly salaries plus two bonuses, commonly July and December. |
| Tunisia | Customary | A 13th-month salary is "common in multinational companies," listed as an additional benefit. |
Source: our country guides, checked July 2026. Many countries in our guides — including the United States, the United Kingdom, Canada, Australia, and much of northern Europe — have no 13th-month norm, so they do not appear here. Where our guides are silent on a 13th month, treat it as not practised and confirm in the country guide.
Read the table as a starting point, not a payroll rule. A "customary" bonus can still become a firm obligation once it is written into a contract or an offer. The country guide has the detail for each place.
What does 13th-month pay cost you?
A 13th month is part of the total cost of a hire, not an optional extra. Where it is mandatory, you must budget for it from day one, on top of salary and employer taxes.
As a rough guide, one extra month spread across the year adds about 8.3% to annual pay. Our guides put Argentina, Brazil, and Colombia near that figure. Where a 14th month also applies — as in Peru and Portugal — the load is larger, closer to 16.7%. Mexico’s minimum aguinaldo of 15 days adds about 4.1%.
Because these bonuses stack on top of employer contributions, they can move a budget by a lot. Our employer payroll taxes by country guide covers the contribution side, and the employment cost calculator rolls salary, on-costs, and statutory extras into one all-in figure. For the wider list of what a country mandates, see statutory employee benefits by country.
Who handles 13th-month pay in EOR employment?
When you hire through an employer of record, the EOR is the legal employer, so it runs the 13th-month payment for you. It calculates the amount, pays it on the right date, and files whatever the country requires — the same way it handles salary and employer taxes.
That removes the main risk: missing a mandatory bonus, or paying it late, in a country whose calendar you do not track. Our guide to what an employer of record is explains the model in full.
The bonus is still a real cost — local law sets it, not the provider. An EOR does not make it cheaper; it makes sure it is paid correctly and on time.
Frequently asked questions
What is 13th-month pay?
13th-month pay is an extra payment equal to about one month of salary, paid on top of the twelve monthly wages. It is common across Latin America, southern Europe, and parts of Asia and Africa, often at year-end. It goes by names like aguinaldo, Christmas bonus, or décimo. In some countries the law requires it; in others it is only a custom.
Which countries require 13th-month pay?
Among the countries in our guides, it is mandatory in Argentina, Brazil, Colombia, Greece, Indonesia, Italy, Malta, Mexico, Peru, the Philippines, Portugal, and Spain. It is customary but not required in Belgium, Chile, Germany, Nigeria, and Tunisia, and in Austria it is set by collective agreement. Countries not in that list generally have no 13th-month norm.
How is 13th-month pay calculated?
It is usually one month of base salary, or one-twelfth of the year’s basic pay. In the Philippines, our guide sets it at one-twelfth of total basic salary earned in the year, prorated for anyone employed less than a full year. The exact base and any service threshold vary by country, so check the relevant country guide before you run payroll.
When is 13th-month pay paid?
Timing varies. Some countries pay once near year-end: Mexico before December 20, the Philippines on or before December 24. Others split it into two installments, such as Argentina at the end of June and December, and Colombia half by June 30 and half by December 20. Peru, Portugal, Greece, and Spain add a second bonus payment as well.
Is 13th-month pay taxed?
In most systems it is treated as salary, so the normal income tax and social-security rules apply to it. The exact treatment, and any exemption, is set by each country and can differ from regular pay. We do not quote a single rate here because it varies; check the tax section of the relevant country guide for how the bonus is handled where you hire.
Does 13th-month pay apply to contractors?
No. 13th-month pay is an employment benefit, so it applies to employees, not to genuine independent contractors, who invoice you and handle their own pay. If you treat a contractor like an employee, though, a reclassification can expose you to back-dated benefits. Our guide to contractor management explains how to keep the relationship compliant.
Hire abroad with the bonuses handled
Remote& brings contractors, EOR, and contractor of record onto one platform — mandatory 13th-month pay calculated, paid, and filed in each country for you. See how it works, or book a walkthrough.