Every December, working adults anticipate their 13th-month pay and Christmas bonus. However, some people do not know the difference between the two. Both words are often used interchangeably, which is why workers can get confused.
The 13th-month pay and Christmas bonus are both monetary benefits given to employees by their employers, but they are not the same. Let us break down the differences.
The 13th-month pay is a monetary benefit that employers are mandated to give their employees. According to DOLE, its equivalent is the basic monthly compensation received by an employee.
If you want to know more about the 13th-month pay and how it is computed, click here.
Unlike the 13th-month pay, Christmas bonuses are non-taxable benefits that employers may or may not give to employees. In other words, Christmas bonuses are optional and are out of the employers’ generosity.
It is also different from the 13th-month pay since Christmas bonuses are usually given before, on December 24th, or even after. The term “Christmas Bonus” came to be since employers usually give them out in December.