th images menu user export search eye clock list list2 arrow-left untitled twitter facebook googleplus instagram cross photos entrep-logo-svg

How can a startup entrepreneur can defray the 13th month pay

But you still have to give it.
By |
<>Cheer up! There are ways to ease the burden of paying the 13th month pay. One way is to increase the frequency of payment. Divide the 13th month pay over a whole year, and incorporate this expense in your monthly operating costs, instead of paying a lump sum at the end the year. You can also have a bi-annual partial payout, let’s say June and December. Or if you are really struggling with your cash flow, you can—if your employees agree—give it in increments tucked into their monthly salaries.

In addition, examine your business and look for opportunities and areas for improvement. Review your cost structure and see how you can cut some expenses without affecting your operations. Look for innovative ways to increase your sales—perhaps you need to ramp up your marketing in order to attract more customers. Maybe your pricing is too low—consider how you can raise your prices without turning customers off. Anticipate your needs and plan your cash flow accordingly. Your sales may actually pick up during the holiday season, giving you that extra cash to fund your employees’ 13th month pay.

Study all these options first, even before considering not giving the 13th month pay.


Latest Articles