Book III — Conditions of Employment
Article 95Right to service incentive leave.
ELI5— what this means for you
After one full year of service, you earn 5 days of paid Service Incentive Leave (SIL) per year. If you don't use them, your employer must convert unused SIL to cash at year-end. This is your legal floor — your contract or CBA may give more.
Key point
5 paid leave days per year after 1 year of service. Unused days = cash conversion.
Official text — PD 442
Right to service incentive leave.
Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay.
This provision shall not apply to those who are already enjoying the benefit herein provided, those enjoying vacation leave with pay of at least five days and those employed in establishments regularly employing less than ten employees or in establishments exempted from granting this benefit by the Secretary of Labor and Employment after considering the viability or financial condition of such establishment.
The grant of benefit in excess of that provided herein shall not be made a subject of arbitration or any court or administrative action.
Source: lawphil.net (PD 442 as amended)
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Legal disclaimer: BatasKo provides general legal information, not legal advice. For advice on your specific employment situation, consult a licensed Filipino lawyer or the Public Attorney's Office (PAO) at pao.gov.ph.