{"id":186479,"date":"2025-11-24T09:41:03","date_gmt":"2025-11-24T09:41:03","guid":{"rendered":"https:\/\/teknomers.com\/en\/is-it-better-to-collect-in-12-or-14-payments\/"},"modified":"2025-11-24T09:41:05","modified_gmt":"2025-11-24T09:41:05","slug":"is-it-better-to-collect-in-12-or-14-payments","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/is-it-better-to-collect-in-12-or-14-payments\/","title":{"rendered":"Is It Better to Collect in 12 or 14 Payments?"},"content":{"rendered":"\n
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One of the most common questions that many workers face when starting at a new company is: how would you like to receive your salary, in 12 or 14 payments? While it may seem straightforward, the decision can significantly impact each employee’s personal finances.<\/p>\n

Understanding the benefits of each option is crucial for effective expense and savings planning over the year. Financial experts emphasize that this choice ultimately shapes how individuals manage their money.<\/p>\n

For instance, labor lawyer Andr\u00e9s Mill\u00e1n discusses this topic on his LinkedIn profile<\/a>. He highlights that if he could earn 15,000 euros in January and apply capital management knowledge, it would be ideal.<\/p>\n

More Salary or More Pay?<\/h2>\n

According to tax expert Marta Rayaces<\/a> from TaxDown<\/a>, the annual salary remains constant regardless of whether it is distributed across 12 or 14 payments. However, the distribution affects monthly cash flow and financial behaviors.<\/p>\n

For example, an employee with an annual salary of 16,000 gross euros will receive different monthly amounts based on their choice. In the 12-month option, their gross salary will be about 1,333.33 euros monthly without any extraordinary payments. Conversely, in the 14-payment option, the monthly salary drops to 1,142.85 euros, but two extra payments are included, typically in June and December, which coincide with peak expense months.<\/p>\n

Cash Flow Management<\/h2>\n

This distinction is crucial for cash management. Rayaces notes that the 12-payment option provides greater liquidity, enabling employees to save more, invest, and manage regular expenses effectively. On the other hand, the 14-payment option may lower monthly cash but offers larger sums during specific months to assist with seasonal expenses like vacations, school supplies, or holiday costs.<\/p>\n

Tax Considerations<\/h2>\n

Rayaces explains that the choice between 12 and 14 payments also impacts personal income tax withholding. However, the annual tax liability remains unchanged. The key difference lies in how withholdings are distributed throughout the year. A lower monthly salary means a proportionately lower withholding rate, but ultimately, the total annual taxation remains the same regardless of payment frequency.<\/p>\n

Financial Planning: Manage or Rely on Others?<\/h2>\n

The decision is also contingent on an individual’s financial management skills. If someone has adequate financial and investment knowledge, receiving 12 payments could be more beneficial as it allows for higher monthly earnings that can be invested. However, if someone struggles with budgeting and tends to overspend, the 14-payment option may provide a safety net during financially demanding months.<\/p>\n

In summary, whether to choose 12 or 14 payments hinges significantly on personal financial management abilities and individual spending habits. Understanding one’s cash flow, seasonal expenses, and financial goals is essential in making the best choice for one’s circumstances.<\/p>\n

Image | Unsplash (Andres Simon<\/a>)<\/p>\n<\/div>\n


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General News – 2<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

One of the most common questions that many workers face when starting at a new company is: how would you like to receive your salary, in 12 or 14 payments? While it may seem straightforward, the decision can significantly impact each employee’s personal finances. Understanding the benefits of each option is crucial for effective expense […]<\/p>\n","protected":false},"author":1,"featured_media":185632,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36399],"tags":[12404,12132],"class_list":["post-186479","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-collect","tag-payments"],"_links":{"self":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/186479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/comments?post=186479"}],"version-history":[{"count":0,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/186479\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media\/185632"}],"wp:attachment":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media?parent=186479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/categories?post=186479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/tags?post=186479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}