Economic diversity is one of the intriguing facets of the global marketplace. Some countries have adopted unique practices to incentivise their workforce, with one such provision being the “13th month pay”. This stipulation mandates employers to pay an extra month’s salary, which often occurs towards the end of the year. This article highlights countries that offer the 13th month pay and how you can expand your business to these regions using our Employer of Record (EOR) solution.

Top Countries Offering 13th Month Pay

1. Philippines

One of the countries that have institutionalised the 13th month pay is the Philippines. The government mandates all employers to provide their employees with this bonus as a means to boost economic activity during the holiday season.

2. Brazil

In Brazil, the 13th salary, also known as ‘Christmas bonus,’ is a constitutional right for all workers. The payment is made in two installments: the first between February and November, and the second by December 20th.

3. Argentina

Argentina also ensures a semi-annual bonus, popularly known as ‘Aguinaldo’. The payment is typically made in two halves – one in June and the other in December.

4. Germany

German employees often enjoy a voluntary 13th month bonus, also known as ‘Weihnachtsgeld,’ which employers may pay out at their discretion. This additional pay serves to increase employee motivation and loyalty.

Ease Business Expansion with Bradford Jacobs’ Employer Of Record (EOR) Solutions

Expanding your business into new territories can be fraught with complexities related to different labor laws, hiring practices, and payroll systems, such as the 13th month pay. That’s where Bradford Jacobs’ Employer of Record (EOR) services can help.

Bradford Jacobs’ EOR solution provides a hassle-free way for your business to expand into countries offering the 13th month pay. Here’s how:

1. Compliance

Every country has unique employment laws, and non-compliance can lead to hefty fines or legal trouble. As an EOR, Bradford Jacobs ensures you comply with the local labour laws, including 13th month pay regulations.

2. Payroll Management

Bradford Jacobs handles all payroll functions, from salary disbursement to tax withholding, ensuring employees receive their due compensation, including the 13th month pay.

3. Hiring and Onboarding

From sourcing talents to handling contracts, Bradford Jacobs manages the entire employee lifecycle, freeing you to focus on your business’s core functions.

4. Reduced Risks

With an EOR, you don’t need to set up a legal entity in a new country, reducing financial and legal risks associated with international expansion.

Start your Global Expansion Today

Understanding and incorporating local labour practices like the 13th month pay can be a crucial aspect of your global expansion strategy. However, the labyrinth of employment laws and payroll systems can make this task daunting. With Bradford Jacobs’ Employer of Record solution, you can sidestep these challenges and seamlessly expand your operations into countries offering the 13th month pay.

Ready to simplify your global expansion? Get in touch with us today and find out how Bradford Jacobs can make your journey to new markets more effortless and efficient. Let us handle the complexities of global employment while you concentrate on growing your business.