By Martina Medina

Payment of the 13th month salary is expected to inject R$ 211.2 billion in Brazil’s economy by December, according to the Inter-Union Department of Statistics and Socio-economic Studies (DIEESE). The amount corresponds to 3% of the country’s wealth based on its gross domestic product (GDP) – the index that measures a country’s wealth.

Usually, Brazilians spend this extra money paying off debts, shopping (for Christmas presents), traveling, or saving.

Below, learn about the history behind this additional salary paid to workers at the end of the year and find out how it works.

When did the payment of a 13th month salary begin?
Known in the early days as the “Christmas bonus”, it was created on July 13th, 1962 during the government of João Goulart. The bonus, which a few companies were already paying, became legally mandatory.

Who has the right to it?
Workers who are formally employed – this includes domestic, rural, or urban workers, and public servants – as well as those who are retired and those who receive social security benefits.

How much is the 13th month salary worth?
The amount is equivalent to the workers’ most recent salary or an average of their salaries throughout the year. Only those who have worked the whole year at the same company have the right to the full month’s salary. Otherwise, the amount proportional to the months worked is paid.

How is the payment made?
The benefit is paid in two installments: the first half by November 30th and the other half by December 20th. Workers can request an advance for the 13th month at another time, such as right before vacation, but the company decides if it will pay in advance or not.

Does this benefit exist in other countries?
Portugal started using a Christmas subsidy – also called the 13th month – in 1972. Mexico and Panama have similar benefits.

QUESTIONS

1) Who has the right to a 13th month salary?
A) Informal workers
B) Workers who are formally employed
C) Children and retirees
D) Workers who are not formally employed

2) What would you do if you were given extra money at the end of the year?

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