How many Payroll Periods are there in Europe?
When expanding into Europe, employers quickly notice that payroll here isn’t always a straightforward monthly affair. While many companies operate with 12 standard pay periods, certain European countries require or encourage additional pay periods, often a 13th or even 14th paycheck. These extra payments have deep roots in cultural traditions, competitive practices, and regional labour laws, and understanding them can help businesses stay compliant while supporting employee satisfaction.
At Parakar, we offer tailored payroll and employment services to help you navigate these European nuances. With our winter incentive, there’s never been a better time to sign up and ensure a smooth transition before the new tax year!
Why extra pay periods?
In several European countries, it’s standard to issue additional paychecks to employees. Here’s a quick look at why these “extra” pay periods exist and what they mean for employers:
- 13th Month Pay : Many European countries, like Belgium and Portugal, commonly offer a “13th month” salary as an end-of-year bonus. This extra payment is often required by law or by local labor agreements and is usually given around the holidays to help employees with extra expenses.
- 14th Month Pay : In countries like Spain, companies provide both a 13th and 14th month of pay. These payments often align with major holidays like Christmas or summer vacation and are intended to boost morale and support local spending during these periods.
- Bonuses and additional payments : Beyond the 13th or 14th pay, other markets may encourage or require payments tied to specific periods or performance. For example, in Italy, an “extra” paycheck might be issued in July, helping employees with mid-year expenses.
- Legislated bonuses : In some regions, bonuses are embedded in labor laws or collective agreements. Countries like Germany often follow agreements that determine bonus structures by industry, ensuring competitive and standardized compensation.
Why it matters for your business
Navigating these additional pay periods can feel overwhelming, especially if you’re managing a multinational team. Missteps in compliance can lead to financial penalties, strained employee relationships, or even difficulties in attracting top talent. Here’s where Parakar steps in to make payroll seamless.
With expertise in payroll regulations across Europe, Parakar’s team ensures compliance and efficiency, so you can focus on growth without worrying about local payroll requirements. Parakar isn’t just a service provider, we’re your partner in expansion, offering in-country expertise, payroll compliance, and employee satisfaction strategies tailored for each region.
Why sign up with Parakar now?
To celebrate the winter season and support businesses preparing for the new tax year, we’re offering an exclusive winter incentive for companies that sign up with Parakar now. Take advantage of discounts on onboarding and specialized payroll setup fees if you join before the new year. With Parakar, you’ll have the peace of mind that comes from knowing your payroll is managed by in-country experts who understand the complexities of multi-pay period compliance.
Parakar is made by people, for people
At Parakar, we’re dedicated to helping you expand across Europe with people-first payroll and employment services. Our team is your guide to European labour laws and payroll structures, simplifying the compliance process while supporting your team. We know that business is built on relationships and employee satisfaction, which is why we’ve created a comprehensive suite of services to ensure seamless payroll and employment for businesses of all sizes.
Let Parakar be your expansion partner in Europe, managing payroll intricacies with the care and attention only people-first professionals can provide.
