The Christmas subsidy is an additional remuneration to the worker’s salary.
The worker is entitled to a Christmas subsidy equal to one month’s pay, which must be paid by December 15 of each year.
In the year of admission of the worker, in the year of termination of the employment contract and in case of suspension of the employment contract due to a workers’ concern, the value of the Christmas subsidy is proportional to the length of service provided in the calendar year. That is, the amount receivable will be proportional to the number of months in functions.
If the employee has completed 1 full year of service, he will be entitled to receive 100% of his salary, deducted from IRS and Social Security discounts.
Regarding IRS withholding, the Christmas subsidy is not added to the salary to determine the respective rate, i.e., in the month in which the processing is carried out, the withholding rate remains the usual.