I really love this post. Timely and informative. I learned something new today, specifically, there is publicly available data on bonuses! Great post Jadrian!
I'm late to finally reviewing this in my open tabs, but fascinating. I remember a loved one complaining a few years ago about how small their Christmas bonus was, and everyone kept telling them that it wasn't typical to receive one at all. I think I've gotten one once, and it was $50.
In Brazil there is a mandatory 13th payment, plus vacation bonus (1/3 of monthly salary). Obviously it's just the annual salary divided in 13.3 parts, but because people negotiate a monthly salary (and jobs advertise on that amount), people think it's an extra payment. Usually it goes to other people they have to pay a 13th salary to (any registered employee like cleaning people) or trips (it's summer in the south).
Merry Christmas, and a new year full of bonus subscribers!
The very small union construction contractor i did my IBEW electrical apprenticeship with starting in 1978 paid a annual year end bonus that was based on how well the company had done that year and was split based on how many years you had worked for the company.
The very large, privately owned multinational construction company I later worked for pays a yearly bonus based on a subjective performance ranking within your functional group across the company. Traditionally that bonus was paid in December, before Christmas, based on a forecasted year end income statement done in October. After badly missing that forecast one year, causing a serious cash flow issue, the payment was moved to January and then later to March, completely detaching any connection to Christmas or year end.
In most of South East Asia, companies traditionally pay a year end bonus as a percentage of the your salary based on how many years you have worked for the company, with after about 5 years, qualifying for an entire 13th month bonus.
I had never heard of the 13th salary until I started writing this article. It's an interesting concept, and I was surprised to see how many countries even have it mandated.
The 13th month bonus works well since its a known value, detached from profitability like a performance based bonus, they can just accrue the cost during the year like they do for holidays and paid vacations.
It also significantly helps with staff retention as people are willing to put up with a lot in order to get the bonus. January resignations do tend to be higher then other months, but its remarkable how many people stick around once they qualify for the full 13th month rather then start over at another company.
My husbands company was just bought and does something weird here. Their 401(k) match is kind of their bonus. You need to be employed on 12/31 and their match is discretionary. So, it’s a maybe extra one time payment that is only to the retirement plan.
I really love this post. Timely and informative. I learned something new today, specifically, there is publicly available data on bonuses! Great post Jadrian!
Thanks, Dr. A! Now you need a companion post on the financial education element of this!
That's a fun way to create content: a continuous loop of long-form responses to one another.
I'm late to finally reviewing this in my open tabs, but fascinating. I remember a loved one complaining a few years ago about how small their Christmas bonus was, and everyone kept telling them that it wasn't typical to receive one at all. I think I've gotten one once, and it was $50.
Nice post!!
In Brazil there is a mandatory 13th payment, plus vacation bonus (1/3 of monthly salary). Obviously it's just the annual salary divided in 13.3 parts, but because people negotiate a monthly salary (and jobs advertise on that amount), people think it's an extra payment. Usually it goes to other people they have to pay a 13th salary to (any registered employee like cleaning people) or trips (it's summer in the south).
Merry Christmas, and a new year full of bonus subscribers!
One of the rabbit holes I went down was learning about the aguinaldo!
NGL I would be thrilled with a Jelly of the Month Club gift membership
I'd rather have a $7,000 bonus
Hmmm probably, but let's at least find out what kind of jam it is first
The very small union construction contractor i did my IBEW electrical apprenticeship with starting in 1978 paid a annual year end bonus that was based on how well the company had done that year and was split based on how many years you had worked for the company.
The very large, privately owned multinational construction company I later worked for pays a yearly bonus based on a subjective performance ranking within your functional group across the company. Traditionally that bonus was paid in December, before Christmas, based on a forecasted year end income statement done in October. After badly missing that forecast one year, causing a serious cash flow issue, the payment was moved to January and then later to March, completely detaching any connection to Christmas or year end.
In most of South East Asia, companies traditionally pay a year end bonus as a percentage of the your salary based on how many years you have worked for the company, with after about 5 years, qualifying for an entire 13th month bonus.
I had never heard of the 13th salary until I started writing this article. It's an interesting concept, and I was surprised to see how many countries even have it mandated.
The 13th month bonus works well since its a known value, detached from profitability like a performance based bonus, they can just accrue the cost during the year like they do for holidays and paid vacations.
It also significantly helps with staff retention as people are willing to put up with a lot in order to get the bonus. January resignations do tend to be higher then other months, but its remarkable how many people stick around once they qualify for the full 13th month rather then start over at another company.
My husbands company was just bought and does something weird here. Their 401(k) match is kind of their bonus. You need to be employed on 12/31 and their match is discretionary. So, it’s a maybe extra one time payment that is only to the retirement plan.
I do not like this.
Yea, I don't love that either.