Sick leave

In the Philippines, statutory sick leave does not exist as a standalone entitlement. Instead, the Labor Code mandates Service Incentive Leave (SIL), which provides a minimum of five days of paid leave annually to employees who have completed one year of continuous service. This leave may be used for any purpose, including illness, and is distinct from vacation or personal leave arrangements that employers may offer separately.

Service Incentive Leave is governed by the Labor Code of the Philippines, specifically Articles 94 and related provisions enforced by the Department of Labor and Employment (DOLE). The five-day minimum applies to all covered employees in the private sector, regardless of company size or industry classification.

Employees become eligible for SIL after completing twelve months of service with the same employer. The leave is non-cumulative by default—unused SIL cannot be carried forward to the following year unless the employer and employee agree otherwise. Upon separation or termination, employers must pay the monetary equivalent of unused SIL at the employee's regular wage rate.

Effective January 6, 2026, the Philippines increased tax-free de minimis benefit limits, which may affect how certain leave-related allowances are treated for tax purposes, though this does not alter the core SIL entitlement itself.

Employers and payroll teams must track SIL accrual from the employee's first anniversary date, ensure proper documentation of leave usage, and calculate separation pay to include any unpaid SIL balance. Compliance requires maintaining accurate service records and understanding that SIL serves as the primary statutory leave benefit for illness and other personal needs in Philippine employment law.