Sick leave

In the Philippines, statutory sick leave as a standalone entitlement does not exist under current labor law. Instead, the Labor Code of the Philippines 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 does not require medical certification unless the employer has reasonable grounds to question its legitimacy.

Service Incentive Leave is governed by the Labor Code of the Philippines, specifically Articles 94 and related provisions. Employees become eligible after completing one year of service with the same employer. The leave is non-cumulative in most cases, meaning unused SIL cannot be carried forward to the next year unless the employment contract or company policy explicitly permits it. Upon separation or termination, employers must pay the monetary equivalent of unused SIL at the employee's daily rate.

While the Philippines does not provide a separate statutory sick leave benefit, employees may also be entitled to leave under other provisions, such as maternity leave, paternity leave, or special leave for specific circumstances. Additionally, effective January 6, 2026, the Philippines increased tax-free de minimis benefit limits, which may affect how certain allowances and benefits are treated for tax purposes.

Employers and payroll teams must ensure they grant the minimum five days of Service Incentive Leave annually to eligible employees after one year of service, maintain accurate leave records, and process final payments for unused SIL upon employee separation. Compliance with these requirements is mandatory under Philippine labor law.