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Old 11.01.2015, 15:23
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13th Salary - based on one's averaged salary for the year?

I'd love some input if anyone knows the answer...

My monthly salary increased last September by 20%.

I came back from Xmas holiday to find my paystub with my December pay as well as my 13th salary. I assumed that the 13th salary would be my current (increased) one, but it much closer to my previous salary.

Is the 13th month salary supposed to be an average of one's salary for the year? Or does it depend on one's contract? My contract is based on salary per month, not an annual one.

Thanks very much.
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Old 11.01.2015, 16:16
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Re: 13th Salary - based on one's averaged salary for the year?

From what you write I would assume you have the 13th salary as a bonus, and not a contracted amount.

If the 13th salary payment is contracted as a fixed amount, or one twelfth of the annual salary, then you have a complaint.

If it is a variable, "A month's salary" then you cannot complain as it is a bonus, and for good working relations, you should not mention the low payment.
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Old 11.01.2015, 16:17
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Re: 13th Salary - based on one's averaged salary for the year?

Actually, it is correct - the 13th salary is calculated pro-rata ... so for the first part of the year based on the old salary and from September on the new salary.
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Old 11.01.2015, 16:22
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Re: 13th Salary - based on one's averaged salary for the year?

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From what you write I would assume you have the 13th salary as a bonus, and not a contracted amount.

If the 13th salary payment is contracted as a fixed amount, or one twelfth of the annual salary, then you have a complaint.

If it is a variable, "A month's salary" then you cannot complain as it is a bonus, and for good working relations, you should not mention the low payment.
My contract states:

"The salary is calculated on a basis of 42 working hours per week of X CHF per month, plus 13th month salary.

"Upon achievement of X degree (I finished a study programme), the salary will be increased by 20% to X CHF per month, plus 13th salary."

So based on this, how would you interpret it?
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Old 11.01.2015, 16:46
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Re: 13th Salary - based on one's averaged salary for the year?

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My contract states:

"The salary is calculated on a basis of 42 working hours per week of X CHF per month, plus 13th month salary.

"Upon achievement of X degree (I finished a study programme), the salary will be increased by 20% to X CHF per month, plus 13th salary."

So based on this, how would you interpret it?
Maybe you should ask your personal manager. Your supervisor might not know your salary level, so perhaps not show him the figures.
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Old 11.01.2015, 18:23
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Re: 13th Salary - based on one's averaged salary for the year?

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Maybe you should ask your personal manager. Your supervisor might not know your salary level, so perhaps not show him the figures.
Yes, I will have to. The issues are that they are scoundrels and I will be leaving at the end of the month (cancelled contract), so I may not get a "correct" answer if you know what I mean. Thanks for your help!
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Old 11.01.2015, 19:28
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Re: 13th Salary - based on one's averaged salary for the year?

But a pro-rata approach is usual and correct - basically the 13th salary is money put aside each month and paid to you in the specified month.
For example, if you start in July, you also get the 13th salary on 6 month portion only, i.e., 50% for that year. Same for salary increases ... unless specified otherwise in the contract
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Old 11.01.2015, 19:33
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Re: 13th Salary - based on one's averaged salary for the year?

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But a pro-rata approach is usual and correct - basically the 13th salary is money put aside each month and paid to you in the specified month.
For example, if you start in July, you also get the 13th salary on 6 month portion only, i.e., 50% for that year. Same for salary increases ... unless specified otherwise in the contract
Thanks for that. Yes, the "pro-rata" amount is also too low if I average out all my pay for the year based on my pay sheets. So I will have to question it. Thanks for your help.
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Old 11.01.2015, 19:51
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Re: 13th Salary - based on one's averaged salary for the year?

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Thanks for that. Yes, the "pro-rata" amount is also too low if I average out all my pay for the year based on my pay sheets. So I will have to question it. Thanks for your help.
Did you calculate it on the gross amount (you should!) or the net amount they pay you to your account? Are you source taxed?
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Old 11.01.2015, 19:55
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Re: 13th Salary - based on one's averaged salary for the year?

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Did you calculate it on the gross amount (you should!) or the net amount they pay you to your account? Are you source taxed?
Yes, I did it on the gross amount as I am source taxed.

But what they consider the 13th salary is unclear, though no doubt they think it is an average like everyone states here. Rats!
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Old 11.01.2015, 20:32
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Re: 13th Salary - based on one's averaged salary for the year?

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Yes, I did it on the gross amount as I am source taxed.

But what they consider the 13th salary is unclear, though no doubt they think it is an average like everyone states here. Rats!
Well then your taxes will be higher as well of course, and they have to readjust it backwards, so to speak, over the previous 8 months, since it is based on the yearly total! Did calculate with this issue?
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Old 11.01.2015, 20:41
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Re: 13th Salary - based on one's averaged salary for the year?

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Yes, I did it on the gross amount as I am source taxed.

But what they consider the 13th salary is unclear, though no doubt they think it is an average like everyone states here. Rats!
13th month is a big con: at best benefiting your company at worst insulting through the insinuation that you can't manage your finances over the year. The worst is when they try to sell this as a "bonus" system. Which it definitely is not.

It also gets messed up if you are taxed at source, as your tax will be calculated month-on-month based on that month's income x 12 and not averaged out over the year. So you get overtaxed in *ahem* bonus months.

See if you can discuss this with your company's HR team to see if they can just pay you normally over 12 months. Especially as it means you need to wait for the tax authorities to adjust your income after financial year-end before you get any adjustment made in your favour.
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