According to The Metropolitan Express, Alibaba sent an internal memo to all employees announcing that starting from fiscal year 2027, the existing 13th-month salary will be merged into the year-end bonus and renamed the “Shoulder-to-Shoulder Yearly Bonus.” This new bonus will be distributed at the same time as the performance-based yearly bonus. Following this change, employees’ year-end compensation will consist of two components: the “Shoulder-to-Shoulder Yearly Bonus” and the “Performance-Based Yearly Bonus,” which will be listed separately. Consequently, the timing of the 13th-month salary payout will shift from its previous schedule of being issued around the Lunar New Year to April or May.
Beijing Business Today reported that this adjustment applies solely to regular employees working in mainland China; for staff in Hong Kong, Macau, Taiwan, and overseas regions, local laws or company policies will govern the arrangements. The memo also outlined transitional measures: since the old 13th-month salary was calculated based on the calendar year while the year-end bonus followed the fiscal year, the first Shoulder-to-Shoulder Yearly Bonus will be paid in the month designated for year-end bonuses in 2027. Employees who remain employed between January 1, 2026, and March 31, 2027, will receive a Shoulder-to-Shoulder Yearly Bonus equivalent to 1.25 months’ basic salary to ensure a smooth transition.