They are monetary bonuses paid to employees, typically mid-summer and year-end, on top of their normal monthly salary. They are called 13th / 14th salaries because they are equivalent to receiving an extra 1 or 2 months of pay. In some countries, they are mandatory; in others, they are customary.
It is most common in Latin American countries and some European countries.
- Whether it is mandatory or customary will depend on local payroll regulations and will be communicated during onboarding.
- When this is mandatory, it does not necessarily need to be included in the Employment Agreement, as statutory requirements are baked into the standard agreement.
- We assume the total annual salary will include vacation bonuses unless you want to do otherwise.