Know the difference: 13th Month Pay vs Christmas Bonus

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.

Photo from Unsplash

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.

Photo from Unsplash

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.

Photo from Unsplash


Patricia Cruz
Patricia Cruz


For advertising inquiries, kindly directly email Sugbo.ph at [email protected].

Similar Articles

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Search

Most Popular