Vacation Leave in the Philippines: DOLE Guidelines and FAQs

Getting time off from work is as important as earning bonuses and monetary incentives.

The Philippines, just like other countries, has labor laws that cover labor and employment.

Furthermore, these labor codes protect contractors and employees from workplace discrimination and unfair treatment. Additionally, it ensures that they receive statutory benefits and full pay accordingly.

What is Vacation Leave?

There are different kinds of statutory leave entitlements available to Filipino employees. One of the most commonly recognized is vacation leave, or VL.

Vacation leave in the Philippines is a leave of absence or allowable time off with pay. It is a benefit that Philippine employers grant to their employees.

Often, employees use these vacation leave credits for rest and relaxation or to attend to personal matters.

How much vacation leave employees receive is the company’s prerogative. Many local employers opt to offer company vacation leave instead of service incentive leave, or SIL.

What is Service Incentive Leave?

Service Incentive Leave (SIL) as leave credits provided by employers to their employees, as stated in Article 95 of the Philippine Labor Code.

Each employee who has worked for at least one year is granted five (5) yearly service incentive leave credits.

Employees who are extended this benefit can use the SIL to take a leave of absence from work and still receive their corresponding pay.

Difference between Vacation Leave (VL) and Service Incentive Leave (SIL)

The government-mandated Service Incentive Leave (SIL) is not vacation leave per se.

SIL is a leave benefit granted to employees who have worked for at least 12 months for a company, regardless of whether the employment is continuous or staggered.

Each employee is entitled to 5 days of SIL, which they can use either as vacation leave or sick leave.

In addition, SIL is provided as an alternate option if the company has not extended vacation and sick leave to their employees.

SIL is no longer applicable if the company already has a set of leave credits extended to its employees.

Company Vacation Leave, or simply VL, on the other hand, is offered by many local employers as time off credits to employees in lieu of SIL.

Generally, a vacation leave is used by employees for personal time, relaxation, or to spend time with their families, such as on special occasions.

Is Vacation Leave (VL) Mandatory in the Philippines?

Employers are not required to provide vacation leave in the Philippines. This is purely based on company policy and employer discretion.

However, there are mandatory leave benefits that employers are required to grant their employees. These are:

• Service Incentive Leave (SIL)
• Maternity Leave
• Paternity Leave
• Parental Leave for Solo Parents
• Leave for Victims of Violence Against Women and Their Children
• Special Leave for Women

Other leaves such as bereavement leave to mourn an immediate family member may be granted but are nit required by law.

How many days is vacation leave in the Philippines?

All employees in the Philippines are entitled to have vacation leave credits of up to 13 days.

After the third year of service, one (1) additional vacation day is granted, for a maximum of 18 days per calendar year.

Lastly, the unused leave credits can be converted to money at the end of the year.

Who is entitled to a vacation leave in the Philippines?

The law provides that any employee who has rendered work within a specified number of hours per day and days per week is entitled to paid leave in the Philippines.

However, there are exceptions, namely:

• Employees working in retail
• Employees of service establishments
• Companies with less than ten employees

What is paid sick leave in the Philippines?

All employers are required to provide their employees with five (5) days worth of paid sick leave in the Philippines, as stated by the Labor Code.

Employees can use this leave benefit for medical or dental appointments and for recuperation from illnesses, accidents, or injuries.

Is paid pick leave (SL) the same as service incentive leave (SIL) in the Philippines?

Paid sick leave credits are granted to employees based on company policy and discretion. This type of leave benefit, just like the company vacation leave, is not mandatory.

The service incentive leave, or SIL, is mandated by the government. It can be used either for vacation or sick leave.

What is the Department of Labor and Employment (DOLE) rule on leave?

According to the Department of Labor and Employment (DOLE), employees who have rendered work for at least one (1) year are entitled to five (5) days of paid service incentive leave. (2022 Handbook on Statutory Monetary Benefits, DOLE)

This means that workers and employees in the Philippines can have up to thirteen (13) days of paid vacation leave.

Furthermore, they should also receive one (1) additional day of paid leave per year beginning in the third year of service.

Additionally, an employee can have a maximum of 18 days’ worth of vacation leave in a year. Lastly, labor laws mandate that unused vacation leave credits can be converted to cash at the end of each year.

Additional FAQs

What to do with unused vacation time?

Employers can convert employees’ unused vacation time into the corresponding cash equivalent at the end of the work year.

What are paid public holidays?

The Philippines has 14 official national holidays and four (4) special non-working holidays. In addition, the labor code provides that employees have an entitlement to receive full pay for these 14 national holidays.

Are female employees entitled to additional statutory leave entitlements?

The Magna Carta of Women specifies that a female employee, regardless of age or civil status, can avail herself of Special Leave for Women.

Under the law, they can avail of two (2) months gross full pay based on the employee’s daily salary rate after undergoing surgery for gynecological disorders.

Who can take paternity leave?

As per R.A. 8187, all male employees in the private and government sectors can receive up to seven (7) days’ worth of paternity leave.

Furthermore, a qualified male employee gets paid in full, including his basic salary, allowances, and other monetary entitlements.

Who can file for maternity leave?

A female employee can file for up to eighteen (18) weeks of maternity leave, including the prenatal period.

Furthermore, this leave benefit is usable within twelve (12) months from the date of the child’s birth or the date of legal adoption.

The female worker is also entitled to receive pay for all holidays within the time frame of her maternity leave.

What are the requirements for filing for sick leave in the Philippines?

A medical certificate is required if the sick leave exceeds five (5) successive days. The employee may also be required to submit additional documents as proof, such as hospital bills, prescriptions, and laboratory results.

Keep track of your employee leave credits accurately

With eezi, you can easily offer company vacation leave credits and keep track of them without hassle!

eezi also lets you check and compute unused vacation leave credits for accurate monetary conversion at the end of each year, as prescribed in the Philippine Labor Code.

Originally published at https://www.eezi.com on June 9, 2023.