EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
S E N A T E  
S. N o .___Ml
Otlllf *>rfrMn»p
•19 JUL 22 P1 ••47
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
INCREASING THE SERVICE INCENTIVE LEAVE OF EMPLOYEES, AMENDING 
FOR THE PURPOSE ARTICLE 95 OF PRESIDENTIAL DECREE NO. 442, AS 
AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES
EXPLANATORY NOTE
Labor is the country's primary economic force as declared by our Constitution. 
As such, we must accord our workforce the nurturing they deserve. Studies show that 
apart from increasing workers' productivity, taking leaves significantly improves 
employee morale and fosters stronger employee retention. Moreover, it reportedly 
contributes to positive health benefits.
Tbis proposed measure seeks to increase the mandated service incentive leave 
from five days to ten days. This will significantly contribute to our workers' welfare, 
and to our economy, in general.
For the well-being and empowerment of our workforce, consideration of this 
bill is earnestly sought.
RAMO^ BONG REVILLA, JR.


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
s. No. 
641
o( ihr * rtu ln rp
'19 JUL 22 P1 ‘-47
Introduced by SENATOR RAMON BONG R E ^^LA , JR.
AN ACT
INCREASING THE SERVICE INCENTIVE LEAVE OF EMPLOYEES, AMENDING 
FOR THE PURPOSE ARTICLE 95 OF PRESIDENTIAL DECREE NO. 442, AS 
AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
1 
SECTION 1. Article 95 of Presidential Decree No. 442, as amended, is hereby
2 
amended to read as follows:
3 
"Article 95. Right to service incentive leave. -  (a) Every employee who
4 
has rendered at least one year of service shall be entitled to a yearly
5 
service incentive leave of [five] TEN days with pay.
6 
(b) This provision shall not apply to those who are already enjoying the
7 
benefit herein provided, those enjoying vacation leave with pay of at least
8 
[five] TEN days and those employed in establishments regularly
9 
employing less than ten employees or in establishments exempted from
10 
granting this benefit by the Secretary of Labor after considering the
11 
viability of financial condition of such establishment.
12 
(c) The grant of benefit in excess of that provided herein shall not be
13 
made a subject of arbitration or any court or administrative action."
14
15 
Sec. 2. Implementing Rules and Regulations. -  Within ninety (90) days from
16 
the approval of this Act, the Department of Labor and Employment, in consultation


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16 
17
1
with relevant stakeholders, shall promulgate the implementing rules and regulations 
of this Act.
Sec. 3. Separability Clause. If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall 
remain valid and subsisting.
Sec. 4. Repealing Clause. Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or 
inconsistent with the provisions of this Act is hereby repealed, modified or amended 
accordingly.
Sec. 5. Effectivity Clause. This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation.
Approved,