Paid time off

Service Incentive Leave in the Philippines is an annual entitlement of paid time off granted to employees who have completed at least one year of service with their employer. As of the legislative approval in 2023, the House of Representatives passed a bill to increase this entitlement from five days to ten days per year, though implementation timelines depend on Senate ratification and executive approval. This leave is separate from regular vacation and sick leave and is designed to reward employee loyalty and provide rest periods.

The rule is governed by the Labor Code of the Philippines, specifically under the provisions administered by the Department of Labor and Employment (DOLE). Service Incentive Leave has been a statutory requirement since the original Labor Code was enacted, with periodic amendments reflecting evolving labor standards.

The recent legislative change represents a significant expansion of employee benefits. The bill's passage on final reading by the House signals intent to double the annual entitlement, though the measure requires Senate approval and presidential signature to become law. The effective date of any increase will be specified in the final enacted legislation.

Employers and payroll teams must monitor the status of this bill through official DOLE communications and legislative updates. Once enacted, organizations operating in the Philippines will need to update their leave policies, payroll systems, and employee handbooks to reflect the new ten-day entitlement. Compliance requires accurate tracking of employee tenure, proper accrual calculations, and timely payment of any unused leave upon separation, in accordance with DOLE regulations.