In some countries, law, company, or collective agreements mandate 13th and 14th month salary payments.

These payments are part of employees' fixed salary. Companies pay them in one annual installment each (for example, in July and December). Companies can also pay them in prorated installments with each payroll cycle.

Learn to set up and manage these salary types in Personio.

Note:
Extra Pay isn’t available for Personio Payroll or DATEV. This means:
▶︎ Your account might include legal entities both with and without Personio Payroll or DATEV. If so, Extra Pay is only available to employees in legal entities without Personio Payroll or DATEV.
▶︎ If you set up Extra Pay before activating Personio Payroll or DATEV, it can remain configured. However, after you activate Personio Payroll or DATEV, you can’t map Extra Pay to salary data or salary components.

Before you start

To create, edit, or delete salaries with 13th and 14th month payments, you need administrator rights or edit rights for Payroll (under Account Configuration).

To view or manage these salaries, you need permissions for the salary tab in the employee profile.

Set up a salary type with additional monthly payments

You need to set up a new salary type with 13th and 14th month payments before you can assign it to employees. To do so, follow these steps:

1. Go to Settings.
2. In the Payroll section, click Compensation.
3. Click Create new and select Salary.
4. Enter a name for the salary (for example, "Salary with additional months"). Add a description (for example, "Salary with 13th and 14th months").
5. Choose the salary components. Add the 13th month, or both the 13th and 14th months. Then edit the components you added.
6. Set the accrual period. This is the start of the period that Personio uses for proration. When employees have only worked parts of an accrual period, they receive a prorated amount.
7. Set the payout frequency. Decide whether to pay the additional month annually or split it into monthly installments. Click Save.
8. Click Create to create the new salary type.

Assign the new salary type to an employee

To assign the new salary type to an employee, follow these steps:

1. Go to the employee's Profile. Click the Salary tab.
2. Next to Salary Components, click Add new and select Salary.
3. Select the salary type with 13th and 14th month payments that you created.
4. Enter the salary amount.
5. Select the date from which the salary becomes effective.
6. Save the salary.

Note:
The 13th and 14th months don't appear in a dedicated column in the salary table. However, the salary widget displays the name, amount, and payout month of the 13th/14th salaries.

Rename or delete the new salary type

To rename or delete the new salary type, follow these steps:

1. Go to Settings.
2. In the Payroll section, click Compensation.
3. Click the additional pay type you want to edit.
4. In the drawer, click the three dots in the top right corner.
5. To rename the salary type, select Rename and edit the name and description. Note that the change applies across all of Personio.
6. To delete the salary type, select Delete.
7. Confirm your choice.

Note:
If you delete a salary type, the change applies retroactively across all of Personio. The system removes the salary type and the payment history from all employee profiles. You can no longer pay out the salary type.

Import salaries with 13th and 14th month payments

To reduce the data you enter manually, you can bulk import employee salaries with 13th and 14th month payments. Before doing so, set up this salary type.

To import the salaries, follow these steps:

1. Go to Settings.
2. In the Organization section, click Imports.
3. Select the salary upload type and download the Salary V2 import template.
4. Enter the relevant data for each employee.
5. Upload the completed template through Settings > Import.

Find detailed instructions in our article on importing salaries.
 

Next steps

Learn more about salary components in Personio.