What is Décimo Tercer Mes (13th-Month Bonus)?
The décimo tercer mes is a mandatory 13th-month payment equal to one month's salary, paid in three equal instalments on 15 April, 15 August and 15 December.
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Current Rate (Paid 15 April, 15 August and 15 December)
One month's salary a year, paid in three equal instalments
Example
An employee on US$1,800 a month receives three instalments of US$600 a year, on 15 April, 15 August and 15 December.
How Décimo Tercer Mes (13th-Month Bonus) works in Panama
The three instalments cover mid-December to mid-April, mid-April to mid-August and mid-August to mid-December. The entitlement is statutory and applies to employees. It is not a discretionary Christmas bonus.
Because the payments fall three times a year, put them in the cash-flow forecast. Finn adds the dates to the deadline calendar so they do not arrive as a surprise.
Treat the décimo tercer mes as part of the cost of each employee when pricing work or modelling hires.
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