Thirteenth salary
[3][4] In the Philippines the thirteenth salary was legalized in December 1975 when President Ferdinand Marcos issued Presidential Decree No.
851, ordering employers to pay a thirteenth salary to improve the situation to employees who are earning less than 1,000 pesos per month (at that time a significant sum).
[5] Compensation based on annual work was paid in addition to the basic salary based on the decision of the Central Committee of the Communist Party of the Soviet Union and the Council of Ministers of the USSR on 4 October 1965 ("On improving planning and enhancing economic incentives for industrial production").
Many employers, such as the Swiss Broadcasting Corporation, decided to implement the 13th month salary to appear more attractive to skilled candidates.
From 1973 onwards, under pressure from the Sugar Industry Staff Employees Association (SISEA), a group of executives were made to sign an agreement stating that a 13th-month salary or bonus would be paid based on the yearly profits.
In 1975, with the help of Cyril Canabady, a lawyer, the government finally stated that every employer would have to pay a 13th-month salary.
[8] In Brazil, the 13th salary, known as "Gratificação de Natal aos Trabalhadores", was initially instituted by President João Goulart in 1962.
Since its implementation, the 13th salary has been a tool for boosting the economy, ensuring high sales volumes for the industry at the end of the year.
[9] In Mexico, the law requiring a 13th salary was established through the Federal Work Law (Ley Federal del Trabajo), which was enacted in 1930 to enhance and protect workers' rights, benefits, payroll services, and social security.
[14] In Germany, a legal distinction is made between a thirteenth salary and a Christmas bonus; in most other countries, the terms are used interchangeably.
The Christmas bonus (usually paid with the November salary) is intended to pay additional holiday expenses and retain employees.
[20] Special payments for regular work performance (a requirement fulfilled by the thirteenth salary, and the Christmas bonus in certain cases) can be counted towards the minimum wage.
Their employment contract stipulates that they are entitled to a half-month Christmas bonus and an annual holiday payment, totaling one month's salary.
To meet the minimum wage of €8.50 (required by law in Germany since January 2015), the employer consolidates the holiday payment and Christmas bonus and pays one-twelfth of the amount to the employee every month.
An employee usually receives two months' salary in December, which helps pay end-of-year and holiday bills.
