How do you manage mandatory holiday bonuses or 13th‑month payments in markets where they are required?

Where required by local law, statutory 13th- and 14th-month salaries, holiday allowances, or similar mandatory bonuses are automatically included in payroll and prorated into your monthly invoice as a separate line item, helping you avoid unexpected year-end costs. 

The monthly proration includes both the gross bonus entitlement and the associated employer social security and pension contributions, providing predictable monthly costs. Employees receive the full statutory payment through regular payroll in the month required by local legislation (for example, December in Italy or May/June in the Netherlands). 

As these requirements vary by country, we'll apply the rules applicable to the employee's place of employment.