Is it right that my company doesn’t pay 13th-month?

Is it right? Is it wrong?

I imagine you came here curious to find out. Well, let’s solve the puzzle together.

Where did the idea of 13th-month pay even come from?

So, if you head over to Google, type in: “What is the origin of 13th month pay?” Here’s what you’d get.“ The 13th-month pay originated in the Philippines in the 1970s as a statutory employee benefit. It was introduced as a Christmas bonus but has since become a core part of payroll in many countries around the world. The 13th month pay is an extra paycheck that is usually equal to one month's basic salary. It is paid in addition to an employee's annual salary and can vary from country to country. Some countries have laws that mandate the payment of a 13th-month pay, while others have collective bargaining agreements that require it for certain industries. In other countries, it is a customary benefit that employees expect but is not mandatory.”

To save you the stress, that’s correct. Interesting, right? But there’s another perspective—a mathematical rationale behind the concept.

The "52 Weeks Divided by 4" Rule

A year has 52 weeks.If you divide those weeks into 4-week months, you end up with 13 "months" instead of the 12 calendar months we’re used to. This calculation suggests there are effectively "13 months" of 4 weeks each in a year, rather than the traditional 12 calendar months.

How does this tie to pay?

Most companies calculate salaries for 12 months, even though there’s a bit of leftover time (365 days ÷ 12 = ~30.42 days per month). This leaves a gap since a year isn’t exactly divisible by 12 months, but dividing the year into 4-week "months" leads to 13 equal periods. Some employers use the 13th-month pay as a way to bridge this gap, ensuring employees are compensated for all 52 weeks of the year.

This concept even aligns with ancient lunar calendars, which divided the year into 13 months of 28 days each—close to the length of a solar year. There is a mathematical rationale behind the concept of the 13th month, stemming from how weeks and months are calculated in a year. Here's how this perspective works:

Modern Use: This perspective may not drive all "13th-month pay" practices, but it offers a logical justification for the additional payment, ensuring a year's work is fully compensated. It also highlights the flexibility and complexity in how time and pay can be structured.

Now, back to Nigeria:

In Nigeria, the 13th-month salary isn’t in our labour laws, meaning it’s not a statutory requirement. Many companies pay it as a perk—a bonus to show appreciation or spread some festive cheer. Unless your employment contract explicitly mentions regular 13th-month payments, your employer isn’t obligated to provide it.

What about pay structures?

From my experience, many Nigerian employers pay salaries monthly, unlike weekly or bi-weekly payment structures in some other countries. This might influence the perception or expectation of a 13th-month salary. So, is it right that your company doesn’t pay a 13th-month salary?

Well, if you’ve read up to this point, I’m curious to know your thoughts in the comment section. Is it a must-have or nice-to-have? Does your company pay 13th month?

Looking forward to your thoughts. ??