Long Vacations and 13th-Month Pay: Are They Good for Workers or Tough on Businesses?

In lots of countries and companies, workers get long vacations, often around holidays, and in some spots, businesses must also give a 13th-month paycheck. Sounds awesome for the employees, right? Time to chill, travel, and still get paid. But this brings up some real questions: How realistic is it for small and medium-sized businesses to shell out 13th-month salaries when things slow down during long breaks? Does taking extra time off actually boost productivity and mental wellness, or does it just mess up workflows and add to expenses? Should 13th-month pay be a requirement for all businesses, or just for the big, profitable ones? Is this a fair expectation for employers, or just too much pressure, especially in tough economic times? For employees, does this lead to a sense of entitlement, or is it a vital shield against burnout and rising costs? Is the combo of long vacations and extra pay a win-win deal, or is it secretly putting stress on businesses? Let’s hear thoughts from both the employee and employer angles.

Not everything is about making a company run. I have a great example for this that fits everywhere when a company is defended and will always use it; child labour. Back in the day when companies could hire small children, literally age 8 to 10 even (some were a bit older) they were doing it so because they knew kids would get paid les sand would still be productive, this was mostly in factories. When a law was discussed about banning child labour, they ended up protesting, and all companies said that they will bankrupt if they can't hire children. What happened? It was banned, and we still have companies, I am sure some of them bankrupted, but the world kept on spinning. Give people 13 month pay and holiday leave, whatever company bankrupts, but at least we will have better life for the workers. A 13th payment in a year would be insanely helpful for many people, I can't imagine how much it would help me.

A leave should not be more than two days if workers really enjoy their works. The idea with things like that is to let workers rest and be refreshed, I believe short rest days is enough to get the workers refreshed. The workers should ofcourse be given enough of what they need to take care of themselves in the one or two days rest period. But that would mean working harder in the workings days to gathered enough for the rest days. It won't be sustainable, or perhaps feasible longterm for some other people to do their work for them, which they were already paid to do. You typically see this unsustainable pay leave in businesses that are compelled by the law or workers themselves, like is obtained in government or more established businesses with strong government influence/control. And they typically afford it by making general wages lower than it should be... in order to reserve some for paid leave, by pushing the cost to customers/society, reducing work on rest days, etc It's important that people do the kind of work they enjoy, so that a long paid leave like that becomes unpleasurable. If it becomes necessary, then they should compensate that with more/longer work before or after the leave

Sounds good on paper, but imo it depends heavily on the economy and the business. In a booming market, sure, it’s probably fine. In a recession? Could be the last straw for some employers. Also, long holidays can mess up project deadlines and client trust. Not totally against it, but making it mandatory across the board feels like it could have unintended consequences. Some workers might value job security more than the extra month’s pay

Well I don't think there is much to discuss here, a person that gives you almost all the months the have in a year working for you and you did not find fault in them to sack them at anytime in the year, I believe that person deserves something like a bonus to go with, yes the work employees give out are actually paid for but to maintain a good working condition and to show appreciation the 13th month salary is actually not bad. And I don't think it is every employers that does this but those who do it are the once that value a good working conditions and knows a little appreciation of their workers can actually go along way in preparing them for next year.

Actually, a well-managed company will definitely have no problems at all with paying the 13th month salary. Because my boss and I sometimes chat casually. And the company he manages is still able to pay the 13th month salary properly because the company has prepared for it throughout the year. This means that the company is actually capable of paying employees higher salaries than they currently receive. However, the company does not do so in order to cover the risk of a slowdown in profits or similar issues that may arise during a crisis. And also to pay holiday allowances, commonly referred to as the 13th month salary. So everything has been planned from the start. However, here, the 13th month salary is usually given before the long holiday before Eid al-Fitr in Ramadan, not at the end of the year. This is because the long holiday is usually given after Eid al-Fitr.

Seen from the worker’s point of view, vacations and salary after a long year of work mean stability. A well-rested worker performs better, and the company can see this as an investment. By giving vacations, they create well-being for the worker, gain loyalty, reduce turnover, and get better performance when the employee returns to work.

There are People that are called relievers in some firms that helps in covering up gaps When staffs are on holidays to prevent lapses or fall in productivity. And yes Holidays are vital. Refreshes the mind and improves drive after resumption. Humans ain't machines. The company would even advice you to go on vacations Because it helps them reduce certain hidden real cost. It's mandatory in many countries but not compulsory in my country Some people find it weird when I talk about 13th month salary.

Not every company follows the 13 month rule, I’m surprised to see such rule stated by companies. When specific questions are being raised op should mention the business type or general both struggling and standard businesses are supposed to follow the rule. This pattern is a big loss for the company besides there’s always an application to fill before employment and such kinds of rules with condition will be stated, for example accepting a job offer then realizing holiday leave doesn’t count and salary payment will be suspended during the period sounds surprising yet other companies act this way in order to maintain financial standard but, mostly the private sector.  Basically government workers still earn same monthly salary not minding the leave type either 7 month or beyond.

Nah, these kinds of incentives are not a burden on business. If it were, they could have filed a legal complaint to counter this, as it would have a bad effect on the company, but it wasn't the case, because it is sustainable.   December is considered one of the peak seasons in most companies, meaning it's a busy month for business. Extended leaves will not hinder the pace of the operations if they are well-planned. Of course, people in the same department could not go on leave on the same date. I don't think the other questions are necessary, but one thing is for sure, companies have been complying with it for a very long time, so that means it is sustainable. Giving bonuses once a year doesn't hurt them at all, and it will provide employees with some breathing room for a whole year of grinding. This post sounds like you're saying that bonuses in December are unfair to the companies. Nah, it's not, because it improves the employee-employer relationship, which is very vital for the business.

For those of us who own private companies, we are not actually obligated to pay a 13th month salary (at least in my country). Only those who work in the government are required to pay a 13th month salary. Private companies are free to choose whether to do so or not. However, I usually give extra pay for holiday allowances. The amount is sometimes equal to the regular salary, meaning that in that month, they receive double their salary. Or sometimes it is less, or even more, depending on the condition of my business. When business is going well, it's not a problem at all. But when business is not going well, it usually becomes a bit of a burden. However, I personally prefer to continue providing it to foster a better work ethic among employees. Moreover, they sometimes need more money during holidays. I have been in their position before. Besides, I don't have many employees, just a few. So it won't affect the business at all. But I don't know what large companies with hundreds or thousands of employees experience.

My friends ever said this to me: For employers, if you don't have enough funds then don't open a business or you have to find a way to pay your operational/expense cost. For employees, if you don't like the job/salary, just quit your job. From your thread you're talking from employers' point of view, you shouldn't open a business when you're not even able to take risk and you're still thinking about how to escape from your obligation.

Maybe from the bulk of profit they must have accumulated all through the year. If it is a small or medium business, they have staff that they can afford, so giving that extra bonus will not crumble the business unless they are poorly financially managed. Work leaves are incentives from work; they generally have a positive impact. If you are able to take up staff, you should be able to pay it.

If you want to make your business legalized and continue to operate, you should stick with the rules. A 13th-month pay is mandatory especially for established companies, but if you are still starting to build your business, a small amount of extra bonus will do, but you should adapt the 13th-month pay in the next possible years, that is if you want to keep your staffs and continue operating your business. Now, long holiday leaves are not actually mandatory, it depends on the number of man power you have in your business. If you can afford to pay higher rate for those who are still working on holidays, much better, but if you are saving some funds, just give them long holidays without pay, that's no work no pay for any beginner in the business who are still trying to thrive in the market.

Overall, I'm on the side of employees being provided with everything they need--holiday vacations, 13th and even 14th month salaries, trainings, and so on. I think we don't lack studies which prove that the more you take care of employees, the more they're productive. The more they have time for their families and leisure, the more they're happy, and the more the community is healthy and vibrant. There's even an accelerating shift to a 4-day work setup. We're in 2026 already. The standard shouldn't be China but Scandinavia.

As far as I know, not all companies provide a 13th-month salary. So, in this case, we should first sort things out. Well, it's common for any company to pay its employees a 13th-month salary. They've followed the existing regulations. Are they at a loss? Absolutely not! Because every company has certainly calculated everything. Likewise, companies that don't pay their employees a 13th-month salary mean their company's capabilities are limited. Regarding employees receiving a 13th-month salary and leave, it's a worker's right and they deserve it. Don't worry too much about it; everything has been regulated by both the government and the company.

For employees, it’s a huge benefit. Extra pay and time off improve morale, loyalty, and productivity. Sure, businesses pay more upfront, but happier workers usually perform better and reduce turnover costs.

There is no need to worry about 13 leave and annual bonuses, if you are an employee you will never know the business profits developed by employees for a full year (12) months, It is normal and required for companies and those running a business to provide a small bonus and a few days of leave for their employees. We understand that businesses or companies have profits that must be taken into account every year, there is no loss for the company bonus + leave, that is something normal and often done by well-known companies, the bonus given to employees is only 2% of profits, just enjoy it. loss.

do you mean 2 days per Annum or am I misunderstanding you? workers need some time away from work settings at least in order to be both physically, mentally and psychologically refreshed and I doubt 2 days is enough to achieve that. It is not always about working but doing so in the right frame of mind allows for more efficiency. A long holiday wouldn't slow down work process at all since every active organization regulates its staff leaves so that a particular department isn't overburdened by of its staffs being on leave at the same time. In a professional environment, being on leave doesn't really mean you're off work totally, it means you could control your duties from the comfort of anywhere only ensuring your department activities synchronize properly and there is no loophole caused by your absence. In my work schedule, it means you have more time to yourself, and you are free from the morning meetings and day to day physical run arounds. A 13th month pay is very important; it boosts the morale of the employees and make them want to give the best. Most companies can afford it because they make good profits themselves. Most of the employers who don't pay it are only being very conservative with spending at the expense of motivating its employees.

I don't think 13th month pay is a problem for businesses, regardless if they're a small business or not. For small businesses,they have fewer employees so there's really not much burden to when it comes to this benefit. It's a mandatory benefit, so it a business cannot provide that for their employee it means that they're not doing well and they might just need to decrease their employee to afford giving these benefits. Also, the employees worked for businesses for 12 months. You earned enough within those 12 months so I don't think it will hurt your company giving them a one month equivalent pay. Long holiday depends on the industry. Some industries still have operations during holidays. So for those who doesn't really require working on holiday season means it's okay for them to close during this season. Employees also have families and they also want to celebrate so let's give it to them. Christmas only comes once a year and these employees have been working 5 to 6 days a week for a whole year. 3-4 days vacation won't hurt.