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Senate bill seeks additional service incentive leaves for employees

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Senate bill seeks additional service incentive leaves for employees
A general view of buildings in the financial district of Makati, suburban Manila on November 10, 2022.
AFP / Ted Aljibe

MANILA, Philippines — Sen. Lito Lapid filed Tuesday a bill pushing to raise the number of paid service incentive leave credits of qualified employees to ten from five.

Senate Bill No. 1511 seeks to amend the provision in the Labor Code of the Philippines, which says that “every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days.”

Lapid argued that increasing the grant of paid leaves is not only advantageous to workers, but their employers as well.

"An important aspect of worker's welfare and benefits is the granting of leaves so that our employees can have time for their families, take vacations and take time for themselves," Lapid said in Filipino. 

"Any additional service incentive leave is a great help to them and it is in compliance with the mandate in our Constitution to ensure humane working conditions."

The senator in his explanatory note also said getting time off from work every now and then is a good way to prevent occupational stress and burnout, and promote work-life balance.

He added that additional leaves would also be beneficial to employers as this would improve the employees’ morale, well-being, productivity and employee retention.

The measure, however, retains the exemptions under Presidential Decree No. 442, which leaves out workers who already enjoy a 10-day paid service incentive leave, those working in establishments that have less than 10 employees and establishments exempted by the labor secretary.

A similar measure in the lower chamber, House Bill No. 988 authored by Rep. Mark Go (Baguio), was approved by the lower chamber in its final reading earlier this week. 

"Such incentives boost the morale and satisfaction of employees which are manifested in increased productivity," Go said then. 

LABOR CODE OF THE PHILIPPINES

SENATE OF THE PHILIPPINES

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