What is a "14th month" payment?

A "14th month" payment is an extra month's salary given to employees in certain countries, typically around the holiday season or during the summer. While not mandatory in most countries, it is intended to provide financial assistance during periods of increased spending, such as vacations and holidays.

What are the differences between 14th month and 13th month payments?

14th month payments and 13th month payments are similar in that they both provide an additional month's salary to employees during holiday or vacation seasons. However, the main difference is that 13th month payments are more common and may be mandatory in some countries, while 14th month payments are often less likely to be mandatory and are seen as customary.

Are 14th month payments mandatory in any country?

Yes, in some countries like Austria, both 13th and 14th month payments are mandatory requirements for companies. However, in many countries, including Japan and the Philippines, these payments are customary but not mandatory.

How can companies offer 14th month pay to a global workforce?

Offering 14th month pay to a global workforce can be complex due to varying regulations and customs in different countries. Companies can simplify this process by working with a payment distribution platform that has expertise in compliance and regulations across multiple jurisdictions. Choosing a platform with a strong track record in handling diverse compliance standards is crucial.