13th-Month Pay & Statutory Bonuses by Country (2026)
A country-by-country reference to mandatory 13th-month pay and statutory year-end bonuses — who must pay, how it’s calculated, and the deadlines — so US companies hiring globally can budget the real cost of a hire.
Published August 2026 · RSW Editorial
Why This Matters for Global Hiring
In much of the world, the year-end payment a US employer would treat as a discretionary "bonus" is a legal entitlement with a formula and a deadline. Known as 13th-month pay, the aguinaldo, or the décimo terceiro, it is one of the statutory benefits most commonly overlooked when a US company budgets an offshore hire — and skipping it where it is mandated is a compliance violation, not a cost saving.
The rule to internalize: the employee’s country of work — not the buyer’s home country — determines whether a 13th-month payment is owed. This reference summarizes the mandates in the markets US companies hire from most, each traceable to its primary source.
Mandatory 13th-Month Pay by Country
| Country | Rule | Deadline / source |
|---|---|---|
| Philippines | 1/12 of the year’s total basic salary (all rank-and-file employees who worked ≥1 month) | On/before Dec 24 (Presidential Decree 851); tax-exempt up to ₱90,000 |
| Mexico | Aguinaldo — minimum 15 days’ salary (pro-rated for partial years) | By Dec 20 (Federal Labor Law Art. 87) |
| Brazil | Décimo terceiro — one month’s salary, paid in two installments | By Nov 30 and Dec 20 (Law 4.090/1962) |
| Argentina | Aguinaldo (SAC) — one extra month, split in two | Two installments (mid-year and year-end), statutory |
| Colombia / Peru | Prima / gratificación — statutory extra pay (broadly ~1 month/year) | Mid-year and year-end, statutory |
| Parts of Europe & Asia | 13th (sometimes 14th) salary — mandated in some countries, customary/collectively-bargained in others | Varies by national law / CBA |
Note the contrast: in the United States and the United Kingdom, a year-end bonus is entirely discretionary — there is no statutory 13th-month equivalent. That is the exception globally, not the rule.
How to Budget For It
Where mandated, 13th-month pay is part of the total cost of employment, not an optional extra — a Philippine or Latin American hire effectively costs ~8% more per year than the base salary implies once the 13th (or two-installment) payment is counted. When you employ staff abroad through an Employer of Record, the EOR calculates and disburses it automatically on the statutory schedule. If you engage genuine independent contractors, it generally does not apply — but the classification must be real.
For the country-level pay context these payments sit on top of, see RSW’s country guides, and for the related exit-side obligations, notice period & severance by country.