What Is A 13th Cheque?
The term “13th cheque” is not widely known, yet it is a common practice in South Africa and involves the payment of an additional salary to employees at certain times of the year. This extra amount of money comes as a bonus or reward for their hard work throughout the year, and can be used by employees however they wish. It’s important for employers in South Africa to understand what a 13th cheque is, so that they are able to properly plan ahead and budget accordingly.
History Of The 13th Cheque
The concept of the 13th cheque first originated from European countries such as France where workers were given an additional month’s salary after working 12 months with their employer. This was done in order to give them some financial breathing space during holidays when people had limited access to other forms of income such as bonuses or commissions which may have been otherwise available throughout the rest of the year. In South Africa, this tradition has become increasingly popular since its introduction over 50 years ago and many companies now offer this benefit as part of their employee packages either on a semi-annual basis (every 6 months) or annually (at end-year).
Benefits Of The 13th Cheque For Employers And Employees
For employers, offering this type of benefits helps promote loyalty amongst staff members who feel valued enough by their employer that they are receiving extra compensation outside regular salaries/wages; thus resulting in increased productivity due to improved morale. Additionally, employers can use these payments strategically with regards to tax deductions – allowing them more flexibility when planning out annual budgets – while also being able to provide higher wages without drastically increasing labour costs overall due to lower taxes associated with one-off payments like those made through 13th cheques . On top of all these advantages for businesses themselves , employees too stand much gain from having access such benefits ; including greater disposable income during festive seasons which boost consumer spending – promoting economic growth overall . Furthermore , if offered regularly every 6 months instead annually , individuals are better able prepare themselves financially against unexpected expenses / emergencies that may arise between paychecks while also enjoying much needed breaks away from usual routines thanks newfound financial freedom .
Conclusion
In conclusion , offering incentives like a “13 th cheques” has proven itself time again be mutually beneficial both employers employees alike– making it essential component any form comprehensive remuneration structure designed attract retain best talent within organisation . Thankfully there laws place ensure fair implementation across different sectors protect rights individuals receive adequate amounts each period so long adhere stipulations laid out regulations governing labour practices country wide .
