Leave policy in the Philippines

Understanding leave policy in the Philippines is a key aspect of hiring and managing Filipino teams. Employees are entitled to certain amounts of leave under Filipino employment law, and businesses need to stay compliant. 

Let’s take a look at vacation leave, sick leave, and other leave types that are typically covered by leave policy in the Philippines.

Annual leave policy in the Philippines

In the Philippines, paid annual leave is called Service Incentive Leave (SIL). SIL grants employees 5 days of paid time off after completing 1 year of service with their employer. 

Employees who are eligible for SIL can have their unused SIL “credits” converted into cash at the end of the year. Encashment is based on the employee’s daily rate, not a fixed amount.

However, not all employees are eligible for SIL. The following workers are excluded from SIL benefits under the labor law of the Philippines:

• Government employees: SIL only applies to employees in the private sector.
• Managerial employees: Workers in senior and authority positions are not covered by SIL.
• Field employees: Contractors and other workers who are not office-based (e.g., those who work in “the field”) or bound to certain working times are not entitled to SIL.
• Domestic and other personal helpers: The personal service industry isn’t covered by SIL.
• Employees in organizations with fewer than 10 workers: Small businesses do not have to offer SIL.

An employer can elect to offer paid time off above Service Incentive Leave, extending a more generous vacation leave policy to employees. In this case, employees are not entitled to both SIL and other benefits; it’s one or the other.

Public holidays are not included within an employee’s SIL quota.

Public holidays in the Philippines

There are two types of public holidays in the Philippines: “regular holidays” and “special non-working days”.

Type of holiday	Examples
11 Regular holidays	There are 11 regular public holidays in the Philippines, including New Year’s Day, Labor Day, and Christmas Day.
8 Special non-working days	8 special non-working days are set by the local government and can vary each year. These days typically include All Saints Day and the last day of the year.

Regular public holidays

Here are the standard public holidays according to the leave policy in the Philippines.

New Year’s Day	January 1st
Maundy Thursday	Changes each year
Good Friday	Changes each year
Araw ng Kagitingan	April 9th or the nearest Monday
Labor Day	May 1st or the nearest Monday
Independence Day	June 12th or the nearest Monday
National Heroes Day	The last Monday of August
Bonifacio Day	November 30th or the nearest Monday
Eid ul-Fitr	Changes each year
Christmas Day	December 25th
Rizal Day	December 30th or the nearest Monday

Special non-working days

The Filipino government sets special non-working days, so it’s no surprise that national and local election days (usually falling in mid-May) make the list. This is intended to give voters a chance to make it to the polls without losing a salary. 

Other special non-working days include Chinese New Year, Christmas Eve, Al Saints’ Day Eve, and Black Saturday (the day before Easter Sunday). 

Sick leave in the Philippines

Sick leave isn’t a mandatory part of paid leave in the Philippines. It’s offered at the company’s discretion. That said, most employers may offer between 12 and 15 sick days a year, so workers don’t have to use their SIL to cover illness.

Maternity leave policy in the Philippines

According to the maternity leave policy in the Philippines, new mothers are entitled to 105 days of maternity leave at full pay. Employees can choose to take an additional 30 days of unpaid maternity leave.

In the event of miscarriage or emergency termination, the mother is eligible for 60 days of leave at full pay.

Paternity leave in the Philippines

The Labor Code of the Philippines mandates paternity leave under the Paternity Leave Act of 1996. This means employers must offer 7 days of paternity leave at full pay for new fathers. 

Solo parental leave in the Philippines

Filipino labor law also has leave policy allowances for solo parents. 

A solo parent is defined as someone who provides sole parental care and support of a child or children due to the death, detention, or physical/mental incapacity of their spouse or legal separation from their spouse. 

Leave policy in the Philippines extends an additional 7 days of paid leave to solo parents (once they’ve worked 6 months). 

To be eligible for solo parent leave, the employee must be registered with the Department of Social Welfare and Development (DSWD) and have a Solo Parent ID.

Other types of leave in the Philippines

In addition to parental leave, sick leave, and vacation leave policy in the Philippines, employees are entitled to other types of leave. 

Victims of Violence Against Women and Children Leave

Leave policy in the Philippines has two special leave types for women, including one for victims of violence. 

As outlined in Section 45 of the Republic Act No. 9262, women who are victims of violence can take up to 10 days of paid leave to get help, receive medical treatment, or attend legal meetings or self-care activities like therapy.

Magna Carta of Women

Female employees who require surgery for gynecological disorders are entitled to up to 2 months of paid leave as long as they have worked continuously with their employer for at least 6 months.

Explore Payoneer Workforce Management in the Philippines

What will your company policy be around special non-working days in the Philippines? Will you offer enhanced compassionate leave? These decisions can make a big difference when it comes to attracting and retaining talent in the Philippines.

Payoneer Workforce Management can support with onboarding, payroll, benefits, and more, including time-off management.

Book a demo today!

FAQs

1) What is the standard leave policy in the Philippines?

Vacation leave is referred to as Service Incentive Leave (SIL) in the Philippines and offers employees 5 days of paid leave per year. 

There are also 11 public holidays offered as paid leave, plus 8 additional special non-working days at the company’s discretion.

2) Is paid sick leave mandatory in the Philippines?

No, sick pay is not mandated by law in the Philippines, but it is common practice.

3) Is unused vacation leave convertible to cash in the Philippines?

Yes, any used SIL “credits” must be converted to cash by the employer at the end of the year.