What is 13th month pay?

It is a form of monetary assistance equivalent to the monthly basic compensation received by an employee, computed pro-rata according to the number of months within a year that an employee has rendered service to an employer (basic monthly pay/12 x number of months actually worked).

Who are entitled to 13th month pay?

All rank and file employees, regardless of status, who have worked for at least one (1) month are entitled to receive 13th month pay.

What if I already worked for one month and I resigned thereafter?

An employee who has resigned or whose services were terminated at any time before the time for payment of the 13th month pay is entitled to 13th month pay, in proportion to the length of time he worked during the year. The formula is: (basic monthly pay/12) x (number of months actually worked). The 13th month may be demanded at the time of effectivity of the resignation/termination. That doesn’t have to be December 24.

Who are rank-and file employees?

All employees not considered as managerial employees are considered rank-and-file employees. A managerial employee, as distinguished from a rank-and-file employee, is one who is vested with powers of prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall discharge, assign or discipline employees, or to effectively recommend such managerial actions.

Read Part 2; Part 3; How is it Computed; Distinguished from Bonus