What is the difference between a thirteenth salary and a year end bonus

What is the difference between the year-end bonus and the thirteenth salary?

1. Definitions. Thirteenth salary: that is, the "thirteenth salary", also known as the "double salary at the end of the year".

After the implementation of the "double salary system" (in accordance with the relevant provisions of the state, the unit pays an extra month's salary to its employees), the "double salary" obtained by an individual shall be subject to individual income tax as a separate monthly wage and salary income.

Year-end bonus: refers to the uncapped reward given to employees by the company at the end of each year, which is an affirmation of the work performance in the past year.

2. Nature. Generally speaking, the 13th salary is a fixed salary agreed between the worker and the employer. As long as the employee provides normal labor, the employer must pay it according to the agreement. If an employee leaves the company in the middle of the year, it should also be paid in equal proportions.

Generally speaking, the year-end bonus has a certain fluctuation, which is often determined according to the economic benefits of the employer and the performance of the individual employee. Generally speaking, the payment of year-end bonuses should be linked to performance, and employers should have performance appraisal standards, appraisal processes, appraisal results, etc.

3. Form of distribution.

Thirteenth salary: At the end of the year, the company will pay employees an extra month's salary. This is measured by time, and as long as the employee has done it for a year, he or she can get double pay.

The distribution of year-end bonuses is as follows:

1) Employees have served the company for a whole year, and the company will pay 1 to 2 months' salary as a reward;

2) Performance bonuses issued according to the results of individual annual performance evaluation and company performance;

3) It is determined by the boss, there are no fixed rules, it may depend on the employee's intimacy with the boss, on the boss's impression of the employee, on seniority, on significant contributions, etc. Usually not public. Some people can also get red envelopes.

Encyclopedia - Thirteen salaries"Encyclopedia - Thirteen salaries

Encyclopedia - Year-end bonus"Encyclopedia - Year-end bonus

Legal analysis: 1. Bonuses or performance wages are generally linked to the work performance of employees and cashed out after performance appraisal, while thirteen salaries are usually only linked to attendance, and thirteen salaries are labor remuneration that clarifies the standards and payment time.

2. The thirteenth salary has the nature of a certain year-end bonus, and the year-end bonus is a labor remuneration and is a part of the total salary.

Legal basis: Article 4 of the Interim Regulations on the Payment of Wages Article 4 The payment of wages mainly includes: the items of wage payment, the level of wage payment, the form of wage payment, the object of wage payment, the reputation of wage payment and the wage payment under special circumstances. Celebration of the beat.

Legal analysis: Theoretically speaking, although both belong to the scope of labor remuneration and the scope of total wages, there are obvious differences between the two. In the newly implemented provisions of individual income tax, the year-end bonus and the year-end double salary are also taxed in the same way, which shows that the two are different.

The year-end double salary is a fixed salary, which is actually a salary, and the amount of its payment is determined (one month's salary of the person), and the time and method of payment (the last month of the year is paid with the salary in December) is also determined, and there is no other payment method and payment reason. Double pay at the end of the year has been separated from the nature of bonuses and has become the labor remuneration that workers should receive, which is fundamentally different from bonuses. Bonus is a reward, which is a reward for employees' excess work and extra contributions.

The bonus is the remuneration for the excess work of the employee, and the year-end bonus is the excess labor remuneration for the employee's annual labor, which is generally based on the assessment of the employee's annual work, and is issued accordingly according to the assessment results, the purpose of which is to assess the employee's annual work.

Double pay at the end of the year is regarded as part of the employee's salary, which belongs to the employee's salary composition, not an additional bonus. Double pay at the end of the year is to save a part of the monthly income of the worker and put it at the end of the year. Double pay at the end of the year does not evaluate the employee's work throughout the year, but only turns the employee's salary in the last month of the year into double salary.

Legal basis: Article 17 of the Labor Contract Law of the People's Republic of China The labor contract shall have the following provisions: (1) the name, domicile and legal representative or principal responsible person of the employer; (2) The worker's name, address, and resident ID card or other valid identification number; (3) The term of the labor contract; (4) The content of the work and the place of work; (5) Working hours, rest and vacation; (6) Labor remuneration; (7) Social insurance; (8) Labor protection, working conditions and protection against occupational hazards; (9) Other matters that shall be included in the labor contract as provided by laws and regulations.

In addition to the necessary clauses stipulated in the preceding paragraph, the employer and the employee may agree on other matters such as probationary period, training, confidentiality, supplementary insurance and welfare benefits.

"Thirteenth salary" refers to the thirteenth month of work, also known as "double salary at the end of the year", which refers to the employer paying an additional month's salary to an individual in accordance with the prescribed procedures. In fact, this is a foreign-funded enterprise that does not pay all kinds of meal subsidies, transportation subsidies, etc., in accordance with state-owned enterprises, and will replace the year-end bonus with one month's salary. Nowadays, some companies are also borrowing from this method of thirteen salaries.

Therefore, the thirteenth salary has a certain year-end bonus nature. The year-end bonus refers to the one-time bonus issued by the withholding agent of administrative organs, enterprises and institutions to employees according to their annual economic benefits and comprehensive assessment of employees' annual work performance. Generally speaking, the thirteenth salary reflects the fairness of the incentive, and the year-end bonus reflects the results of the performance appraisal.

Legal basis: Article 12 of the Labor Contract Law of the People's Republic of China (2012 Revision) [Types of Labor Contracts] Labor contracts are divided into fixed-term labor contracts, indefinite-term labor contracts and labor contracts with a term of completion of certain work tasks.

The difference between the thirteenth salary and the year-end bonus: different meanings, different payment times, different payment amounts, different payment forms, and different distribution objects.

First, the meaning is different

The meaning of the year-end bonus: The year-end bonus refers to the uncapped reward given to employees by the enterprise at the end of each year, which is an affirmation of the work performance of the past year.

13. The meaning of salary: After the implementation of the "double salary system" (in accordance with the relevant provisions of the state, the unit pays an extra month's salary to its employees), the "double salary" obtained by the individual shall be separately used as one month's wages and salaries to calculate and levy individual income tax.

Second, the issuance time is different

In accordance with national regulations, double salaries are implemented in November and December each year, that is to say, the monthly salary is doubled. The year-end bonus is issued at the end of the year according to the actual situation of the enterprise.

3. The amount of payment is not the same

The thirteenth salary is paid according to the employee's salary this month, and the amount of payment is linked to the salary of this month, while the year-end bonus is given by the enterprise according to the employee's work performance, combined with the actual situation of the enterprise, and the amount is not necessarily linked to the salary of this month.

Fourth, the issuance of forms and balances is different

Thirteen salary is in accordance with the provisions of the state, is the enterprise must pay, the form of payment is mainly cash, and the year-end bonus is determined by the enterprise according to the actual situation, the form of distribution can be cash, can also be in kind or gifts.

Fifth, the distribution of different objects

The thirteenth salary is according to the national regulations, each in-service employee can enjoy the benefits of the thirteenth salary, and the year-end bonus is according to the actual situation of the enterprise, only outstanding employees can get the benefits of the year-end bonus.