13th month pay season is here. Here's why this one paycheck moves the whole economy.

Originally reported as: “Retailers, banks brace for seasonal spending surge as mandatory 13th month pay hits accounts”

As required by Philippine law, employers across the country are finalizing 13th month pay for millions of rank-and-file workers, due on or before December 24 each year. The benefit equals at least one-twelfth of an employee's total basic salary earned during the year, landing as a single lump sum that often rivals or exceeds a full month's take-home pay. For many households, it is the single biggest paycheck of the year, and it triggers a predictable seasonal surge in retail sales, e-commerce activity, and bank deposits every December. It also reopens the same debate every year: spend it on the holidays, or use it to build savings and pay down debt that will still matter come January.