Human Resources
RESEARCH ON 13TH MONTH PAYMENT IN NIGERIA
13TH MONTH PAYMENT IN OTHER COUNTRIES
With reference to the issue of 13th month payment, below is a summary of our findings on the 13th month payment.
13th month payment is usually a bonus payment made at the end of the year to all employees of an organization. For some countries like the Philippines, the 13th month pay is made compulsory by the law. The law also stipulates what should be paid as 13th month
According to Philippine’s law - Presidential Decree No. 851 - requires all employers to pay their rank-and-file employees, regardless of the nature of their employment and irrespective of the method by which their wages are paid, an equivalent to at least one (1) month of their wages as 13th month pay. To be entitled to 13th-month pay, these employees must have worked for at least one month during the calendar year.
For most other countries researched (Argentina, Nicaragua and Colombia), it is calculated as the basic salary paid in the last month of service. However, Mexican law requires minimum two weeks salary instead of a month, and Chile’s 13th month pay is split between September and December.
13TH MONTH PAYMENT IN NIGERIA
The Nigerian law does not make the 13th month payment compulsory, but it has actually become an acceptable practice across industries and organizations in the country. The implementation of the 13th month varies from one organization and industry to the other. The definition of 13th month pay depends on how different organizations define and structure their salary and can range between 30% - 100% of monthly emolument. The 13th month pay is separate from the Christmas Bonus!
For some organisations, all remunerations or earnings paid by the employer for services rendered which do not include allowances and monetary benefits such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay, and cost-of-living
13TH MONTH PAYMENT IN OTHER COUNTRIES
With reference to the issue of 13th month payment, below is a summary of our findings on the 13th month payment.
13th month payment is usually a bonus payment made at the end of the year to all employees of an organization. For some countries like the Philippines, the 13th month pay is made compulsory by the law. The law also stipulates what should be paid as 13th month
According to Philippine’s law - Presidential Decree No. 851 - requires all employers to pay their rank-and-file employees, regardless of the nature of their employment and irrespective of the method by which their wages are paid, an equivalent to at least one (1) month of their wages as 13th month pay. To be entitled to 13th-month pay, these employees must have worked for at least one month during the calendar year.
For most other countries researched (Argentina, Nicaragua and Colombia), it is calculated as the basic salary paid in the last month of service. However, Mexican law requires minimum two weeks salary instead of a month, and Chile’s 13th month pay is split between September and December.
13TH MONTH PAYMENT IN NIGERIA
The Nigerian law does not make the 13th month payment compulsory, but it has actually become an acceptable practice across industries and organizations in the country. The implementation of the 13th month varies from one organization and industry to the other. The definition of 13th month pay depends on how different organizations define and structure their salary and can range between 30% - 100% of monthly emolument. The 13th month pay is separate from the Christmas Bonus!
For some organisations, all remunerations or earnings paid by the employer for services rendered which do not include allowances and monetary benefits such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay, and cost-of-living