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The 14th month salary, similar to 13th month salary, is a form of additional compensation that employees can receive – it's usually equal to one month's pay. Employees with a 14th month salary will get two bonus payments in a year, on top of their normal salary. It's a less common practice than 13th month pay.
Countries where 14th month pay has been implemented include:
Some nations have adopted this practice as part of their mandatory employment regulations, such as Austria and Greece. In other countries, it's a non-mandatory contribution – for example, employers in Spain aren't required to pay a 14th salary, but it's a widespread practice.
In jurisdictions where it forms part of mandatory employment regulations, the 14th month pay is typically governed by local laws or collective bargaining agreements, and can form part of standard employment contracts that specifies employee salary.
Eligibility for the 14th month pay varies by country and is also contingent on other factors, such as employment status, industry norms, and specific company policies.
Usually only salaried, full-time employees will receive this bonus payment, as opposed to part-time workers such as freelancers. In some countries, the bonus is also tied to seniority. For example, in Italy, 14th month pay is reserved for executives or those who have worked at their company for a long time.
There are two common ways to calculate 14th month salary payment:
Calculate 14th month pay by dividing an employee’s gross salary by 12. The 13th and 14th salaries are two additional payments of an employee’s usual monthly wage.
Calculate 14th month pay by dividing an employee’s gross salary by 14. The bonus payments are taken from the gross annual salary.
It varies by country when the bonus payments are distributed, but the 14th month pay is typically paid out in summer months as opposed to an end-of-year or Christmas bonus (the 13th month pay).
Tip: Use Playroll's free employee cost calculator to get an exact breakdown of cost in countries where 14th month pay is mandatory or commonplace.
Countries where 14th month pay has been implemented include:
Some nations have adopted this practice as part of their mandatory employment regulations, such as Austria and Greece. In other countries, it's a non-mandatory contribution – for example, employers in Spain aren't required to pay a 14th salary, but it's a widespread practice.
In jurisdictions where it forms part of mandatory employment regulations, the 14th month pay is typically governed by local laws or collective bargaining agreements, and can form part of standard employment contracts that specifies employee salary.
Eligibility for the 14th month pay varies by country and is also contingent on other factors, such as employment status, industry norms, and specific company policies.
Usually only salaried, full-time employees will receive this bonus payment, as opposed to part-time workers such as freelancers. In some countries, the bonus is also tied to seniority. For example, in Italy, 14th month pay is reserved for executives or those who have worked at their company for a long time.
There are two common ways to calculate 14th month salary payment:
Calculate 14th month pay by dividing an employee’s gross salary by 12. The 13th and 14th salaries are two additional payments of an employee’s usual monthly wage.
Calculate 14th month pay by dividing an employee’s gross salary by 14. The bonus payments are taken from the gross annual salary.
It varies by country when the bonus payments are distributed, but the 14th month pay is typically paid out in summer months as opposed to an end-of-year or Christmas bonus (the 13th month pay).
Tip: Use Playroll's free employee cost calculator to get an exact breakdown of cost in countries where 14th month pay is mandatory or commonplace.
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