The end of the year is in sight. This not only means holidays, Christmas gifts and oliebollen, but for many also that little extra from your employer: the thirteenth month or end-of-year bonus. But why does that money only arrive in December?
To start with: not everyone gets that extra fat wallet at the end of the year. “It is not the case that every employee is entitled to it,” says employment lawyer Suzanne Meijers. Something about this must be laid down in a collective labor agreement, employment contract or employee handbook.
Remuneration for staff
Meijers says that the thirteenth month and end-of-year bonus were created purely as a reward for staff at the end of the year. She believes that it has nothing to do with the often more expensive Christmas period. “Coincidentally, that’s at the end of the year.”
The employment lawyer says he has never heard of such a benefit or extra salary being paid out earlier than in December. Even though she can personally imagine that this could be interesting for people in connection with the purchase of Christmas gifts. “I do know that people can receive this earlier when they leave employment. They will then receive this pro rata.”
Sometimes already in November?
However, it does happen that the amount is paid out earlier, employees’ organization FNV knows. A spokesperson said that an employer sometimes chooses, for example, to transfer part of the salary every month and sometimes the amount is sent with the salary in November. “This is often the result of negotiations about the collective labor agreement or sometimes it has traditionally grown that way. An extra gesture in November is often because of the expensive month of December that is just around the corner.”
What do the thirteenth month and end-of-year bonus entail?
- Thirteenth month
You will receive a gross payment of your monthly salary on top of your normal salary. Basically an extra month’s pay. According to the FNV, a thirteenth month is usually equal to a gross monthly salary, 8.33% of your annual salary. The amount that you ultimately receive in your account is often lower than your monthly salary. Because it is a ‘special reward’, you pay extra payroll tax on it. - End-of-year bonus
This is a percentage of your gross annual salary. According to the FNV, the employer agrees on a ‘floor’. This is a fixed amount that you will receive at least as an end-of-year bonus.
It may therefore differ per company how a thirteenth month or end-of-year bonus is determined. According to Imke van Kampen, owner of Frem HR consultancy firm, as an employee you are always free to ask to have the benefit paid out at another time. “But you can’t force it,” she says.
She knows that there are also companies that do not pay a thirteenth month or end-of-year bonus to their employees. “But many companies do give something extra. For example, a profit distribution, performance bonus or choice budget,” she explains.