Countries with 13th and 14th salaries
In several countries the annual salary is paid in more than 12 instalments. Spain usually pays 14 (two extra "pagas" in summer and December, often prorated), Portugal, Greece and Austria pay 14, Italy commonly pays 13 or 14 depending on the collective agreement, and Belgium and the Netherlands pay a holiday allowance. In the Philippines and many Latin American countries a 13th-month payment is required by law.
What to compare
Always compare annual figures. A Spanish offer of €3,000 a month in 14 payments is €42,000 a year, more than €3,400 a month in 12 payments (€40,800). Employer social contributions are charged on the extra payments too.
Frequently asked questions
Is a 14th salary extra money?
Usually not: it divides the same annual salary into 14 parts.
Is the 13th month a bonus?
Where it is mandatory, it is part of the salary, not a discretionary bonus.
Are extra payments taxed differently?
Usually they are taxed as normal salary, though withholding may differ in the month paid.