You’re looking at a contract for a fantastic tech job in the EU, maybe in Portugal, Spain, or Italy. You scan down to the compensation section and see: “Annual Salary: €48,000, plus a 13th-month salary.”
Amazing! An extra month’s pay just for showing up!
…or is it?
Welcome to one of the most common and confusing parts of European compensation. The “13th-month salary” (and sometimes even 14th) is a standard part of the pay structure in many countries. It is not always a “bonus” in the way you think.
Here’s a simple guide to what it really means.
💰 What Is a 13th Month Salary?
In many European countries, the 13th-month salary (and 14th) is a mandatory or customary payment.
- Mandatory Countries: In places like Greece, Italy, Portugal, and Spain, these extra payments are required by law.
- Customary Countries: In others, like Austria, Germany, France, and the Netherlands, it’s not a legal requirement, but it’s a very common practice (a “custom”) often set by collective agreements or just company policy.
It’s often paid at specific times, like in December (as a “Christmas bonus”) or split, with half paid in the summer for vacation.
The “Trap” vs. The “Benefit”
This is the only part you need to pay close attention to. The 13th-month salary is calculated in two very different ways, and it drastically changes your monthly budget.
1. The “Benefit” (What you hope it is)
Your contract states a monthly salary plus the 13th month.
- Example: “Your salary is €4,000 per month, paid in 12 installments. You will also receive a 13th-month bonus of €4,000 in December.”
- Your Total Pay: €4,000 * 13 = €52,000 per year.
- Your Monthly Paycheck: €4,000.
2. The “Trap” (What it often is)
Your contract states an annual salary that is divided into 13 payments.
- Example: “Your annual salary is €52,000, paid in 13 installments.”
- Your Total Pay: €52,000 per year.
- Your Monthly Paycheck: €52,000 / 13 = €4,000. This means for 11 months you get €4,000, and one month (e.g., December) you get two payments of €4,000.
Wait. Read that again.
In both scenarios, your total annual pay is €52,000. But in the “Trap” scenario, your monthly take-home is not €52,000 / 12 (€4,333). It’s €4,000. This is just a different way of dividing the same pie.
How to Read Your Contract: A Cheat Sheet
When you get an offer, use this table to understand your real monthly pay.
| Contract Wording | Advertised Annual Salary | Your Monthly Paycheck | Your Total Pay | Is it a “Bonus”? |
| “€48,000 per year, paid in 12 installments” | €48,000 | €4,000 | €48,000 | No bonus |
| “€48,000 per year, paid in 13 installments” | €48,000 | €3,692 | €48,000 | No. (This is the trap) |
| “€4,000 per month, plus a 13th month bonus” | €48,000 | €4,000 | €52,000 | Yes! (This is the benefit) |
Your Key Question for HR
Before you sign, ask your staffing agency, get-talent..eu in the EU or the HR manager one simple question:
“To clarify the compensation, is the advertised annual salary of €48,000 paid in 12 installments, with the 13th month as an additional payment? Or is the €48,000 my total annual compensation, which is then paid out in 13 installments?”
This question shows you’re diligent and ensures there are no surprises in your first paycheck.
References
- EuroDev: Understanding the 13th and 14th Salaries Across Europe
- Wikipedia: Thirteenth salary
- ADP: The 13th: Bonuses around the world
- Justworks: Which Countries Require 13th Month Pay?