Philippine Leave Policies
According to the Philippine's Labor Law, the leave policy, also known as Service Incentive Leave (SIL), is mandated by Article 95 of the Labor Code. Under the provision, all employees who have rendered service for at least a year of service will receive at least 5 days of leave credits annually. Employees can use these credits for vacation or sick leave and receive payment during these absences.
However, it has been an industry standard that employees who have passed their probationary period (6th month) will be able to use their Service Incentive Leave (SIL) for either sick leave or vacation leave. Several companies have proactively taken the initiative to increase the number of service incentive leaves as part of enhancing employee benefits.
Accrual of Leave Credits
- Your employees will accumulate leave credits at a rate of X leave credits per year, which translates to X/12 leave credits per month, beginning from their first day of employment.
- Please note that while leave credits are accrued during their probationary period, they can only be utilized once they achieve regular employee status
The maximum number of leave credits they can accumulate will depend on you. This operates on a "battery system," meaning once the cap is reached, any additional leave credits will be forfeited.
For more details on the types of leave, click here:
- What is a Leave without Pay?
- What is a Leave with Pay?
- What is a Maternity Leave?
- What is a Paternity Leave?
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