13TH MONTH PAYMENT Clause Samples
The 13th Month Payment clause requires employers to provide employees with an additional month's salary, typically at the end of the year, as a form of bonus or mandatory benefit. This payment is usually calculated based on the employee's basic monthly wage and is given regardless of company performance or individual sales targets. Its core practical function is to reward employees for their service throughout the year and to help ensure financial stability for workers during the holiday season.
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13TH MONTH PAYMENT. (1) A 13th month payment equivalent to one (1) month’s basic salary shall be paid in December of each calendar year.
(2) To be eligible for 13th month payment, staff must be in service of NUS as at 31st December of the year of payment.
(3) Staff who have not completed twelve (12) months of service arising from termination due to retrenchment or contract expiry, retirement, medically boarded out or died whilst in service shall receive 13th month payment pro-rated to the last day of service.