Leave Policy in Philippines

Types of Leave

The Philippines provides a variety of statutory leave entitlements through the Labor Code and social legislation. Employers must familiarize themselves with each category to ensure proper implementation.

• Service Incentive Leave (SIL): Employees who have rendered at least one year of service are entitled to five days of paid leave annually. This leave can be used for any personal reason, including vacation and emergencies.
• Sick Leave: Not required by law under the Labor Code but commonly offered by employers as a company benefit. Employers often match sick leave to service incentive leave if not otherwise provided.
• Maternity Leave: Female employees are entitled to 105 days of paid maternity leave for live childbirth, with an option to extend for 30 days without pay. Solo mothers receive an additional 15 days. Benefits are paid through the Social Security System (SSS).
• Paternity Leave: Fathers are entitled to 7 days of paid paternity leave for the first four deliveries of their legitimate spouse or common-law partner. Paid by the employer.
• Parental Leave for Solo Parents: Solo parents are entitled to 7 days of paid leave annually upon presenting a Solo Parent ID.
• Special Leave for Women: Female employees are eligible for up to 60 days of leave for gynecological surgeries under Republic Act No. 9710. Paid by the employer.
• Leave for Victims of Violence Against Women and Children: 10 days of paid leave is granted under RA 9262, subject to certification from appropriate agencies.

Unused Leave

Unused SIL must be converted to cash at the end of the year unless otherwise agreed upon. For maternity and paternity leave, there is no carryover. Upon resignation or termination, any accrued SIL or employer-provided leave must be paid out.

Consequences of Mismanagement

Failure to comply with mandatory leave requirements may lead to claims filed with the Department of Labor and Employment (DOLE). Violations could result in back pay orders, administrative fines, or employee complaints through the National Labor Relations Commission (NLRC). Consistent record-keeping and policy adherence are critical.

Public Holidays

There are typically 18 public holidays each year, split between regular and special non-working holidays. Work done on regular holidays requires 200% pay; special holidays require 130%. Employers should publish a calendar of recognized holidays to ensure fair observance.

How AYP Manages Leave Compliance

AYP offers expert support in navigating the Philippines’ layered leave rules, including processing SSS maternity reimbursements, automating SIL conversion, and tracking diverse leave types such as solo parent or violence leave. Our EOR platform ensures compliance and removes the administrative burden from your team.

Contact Us

Planning to expand in the Philippines? Contact AYP to ensure leave compliance and payroll accuracy through our all-in-one EOR solution.