For companies operating across multiple European countries, one often-overlooked payroll complexity is the concept of 13th and 14th month salary payments. These extra payments, which can be legally required or simply customary, have a significant impact on budgeting, payroll setup, and employee expectations.
In this article, we explore how these additional salary payments work in various countries, with a focus on Belgium.
What Are 13th and 14th Month Salaries?
The 13th and 14th month salaries are additional payments made to employees, typically as bonuses. These are common in many European countries, especially in Southern and Western Europe, and are usually paid during the holiday season (December) or summer (June), depending on the country.
They are not uniform across the EU, and local labor laws or collective agreements often dictate whether they are mandatory, how they are calculated, and when they are paid.
13th & 14th Month Salary in Belgium
13th Month Salary (End-of-Year Bonus)
- While not mandated by Belgian national law, the 13th month salary is widely practiced and often required through collective labor agreements (CLAs).
- It typically equals one month’s gross salary.
- Usually paid in December, before the holiday period.
- Common among white-collar workers and larger employers.
Holiday Bonus (“Double Holiday Pay”) – Sometimes Considered a 14th Month
- This is mandatory under Belgian law.
- Given to employees who qualify for statutory paid holidays.
- Consists of:
- Single holiday pay: Regular salary during time off.
- Double holiday pay: An additional amount (about 92% of one month’s salary) paid in May or June.
- Though technically not a “14th month”, this functions similarly in practice and is an expected part of employee compensation.
Comparison With Other Countries
| Country | 13th Month Salary | 14th Month Salary | Notes |
|---|---|---|---|
| Belgium | Common (CLAs) | Holiday bonus (mandatory) | Double holiday pay acts as informal 14th month |
| Spain | Common practice | Often Mandatory | Paid in June and December; can be prorated monthly |
| Portugal | Mandatory | Mandatory | Paid in June (holiday bonus) and December (Christmas) |
| Italy | Common (CLAs) | Sometimes (14th optional) | 13th in December, 14th in summer in some industries |
Why This Matters for Employers
- Financial planning: These bonuses can equal up to two extra months of salary per year.
- Payroll setup: Your system needs to accommodate these payments and timing.
- Legal compliance: Missing or miscalculating these payments can result in penalties or disputes.
How Internago Supports You
At Internago, our platform is built to handle complex, multi-country payroll needs:
- Our tools help you manage GDPR-compliant document sharing and payroll data.
- We support both centralized visibility and local compliance.
Conclusion
Understanding and managing 13th and 14th month salaries is crucial for any employer operating internationally. In Belgium, while not always mandated by national law, these payments are an expected and ingrained part of compensation.
Ready to streamline your European payroll? Contact us to learn how Internago can simplify your processes across borders at info@internago.com.
Make sure to also take a look at our other blog posts about Belgium, such as “Understanding the Belgian payslip“.
Disclaimer:
This blog post provides a general overview and introductory examples related to payroll. In practice, there are many additional factors to consider, and this article should not be regarded as comprehensive guidance. For a more in-depth discussion tailored to your specific needs, please feel free to contact us.