It's one of the most common questions when reading a job offer or signing a contract: is it better to be paid in 12 installments or 14? The short answer is that, on an annual basis, it makes exactly no difference: your gross annual salary is the same. What changes is how it's spread across the year, and that does have practical consequences.
What being paid in 14 installments means
With 14 payments, on top of the 12 ordinary monthly paychecks, you receive two extra bonus payments: usually one in summer (June or July) and another at Christmas (December), although the collective bargaining agreement may set different dates. Each extra payment is usually equal to a full month's pay, though some agreements calculate them differently.
What being paid in 12 installments means
With 12 payments, the two extra bonus payments are prorated: instead of receiving them as lump sums in summer and at Christmas, their amount is spread across the 12 monthly paychecks. The result is a higher, steadier monthly paycheck throughout the year, but without those two lump-sum "extras."
A comparison with numbers
For a gross annual salary of €24,000:
| Type | Ordinary monthly paycheck | Months with a bonus payment |
|---|---|---|
| 14 payments | €24,000 ÷ 14 ≈ €1,714 gross | June and December: double, around €3,429 gross |
| 12 payments | €24,000 ÷ 12 = €2,000 gross | Not applicable, every month the same |
The total gross annual amount is identical: €24,000 either way. The only thing that changes is the monthly distribution.
So which one is better?
It depends on your habits and your situation:
- 12 payments suits people who prefer stable, predictable monthly income with no spikes, and those who tend to overspend when they receive a large lump sum.
- 14 payments can help people who use the bonus payments as a form of "forced" saving, or to cover seasonal expenses (summer holidays, Christmas spending), as long as they have the discipline not to spend it ahead of time.
For tax purposes, income tax withholding is adjusted throughout the year so the final result is equivalent either way, so no option comes out ahead on your annual tax return.
Why your monthly net pay isn't simply the gross divided evenly
A common mistake is calculating monthly net pay by simply dividing gross annual salary by 12 or 14. In reality, you first need to subtract the employee's Social Security contribution (around 6.35% of gross pay) and income tax withholding, which depends on your region, your family situation, and the salary amount itself. Only after applying both deductions do you get the actual net amount that shows up in your account.
Calculate your own case
Our net salary calculator lets you enter your gross annual salary, choose between 12 or 14 payments, your region, and your family situation, and see exactly how much you'll take home each month, including the months with a bonus payment if applicable.