Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO._______ 
__________________________________________________________________________ 
Introduced by Honorable Mark O. Go  
__________________________________________________________________________ 
EXPLANATORY NOTE 
Labor force is an essential component of every social and economic growth.  It is the policy 
of the State, as enshrined in the Constitution, that the State affirms labor as a primary social 
economic force and shall protect the rights of workers and promote their welfare. 
At present, our laws do not require employers the granting of sickness and vacation leaves. 
These work incentives are given based on the prerogative of the employers either by express 
stipulation on the employee’s contract or thru collective bargaining agreement.  What the Labor 
Code provide instead are service incentive leaves (SIL).  An employee who has rendered at least one 
year of service is entitled to a yearly service incentive leave of five (5) days with pay. However, the 
same Code provides that an employer who grants employees with vacation leaves of at least five (5) 
days shall already be deemed compliant with the mandatory granting of the SIL, thereby rendering 
the mandatory leave credits at a minimum of only five days.  With the increase in the number of 
leave credits in the form of sick or vacation leaves left purely at the discretion of employers, 
employees constrained by limited leave credits are left vulnerable to sickness, emergencies and other 
fortuitous events that would cost them a day of paid work.  
The granting of paid leaves is not only beneficial to the employees but economically 
advantageous for employers as well.  Such incentives boost the morale and satisfaction of employees 
which are manifested in increased productivity.  Leave credits also minimizes the risk of health and 
safety issues among employees which may even be more costly for both employees and employers in 
the long run. 
This bill has been approved by the House of Representatives in the 18th Congress and was 
transmitted to the Senate for its consideration and approval.  However, due to lack of material time, this 
proposed measure was not enacted into law. 
Hence, immediate consideration and approval of this proposed measure is earnestly sought. 
MARK O. GO 
July 1, 2022 
7:03 pm
988


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO._______ 
__________________________________________________________________________ 
Introduced by Honorable Mark O. Go  
__________________________________________________________________________ 
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 of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. 
Article 95 of Presidential Decree No. 442, as amended, is hereby amended to 
read as follows: 
“Article 95. Right to service incentive leave. -- 
(a) Every employee who has rendered at least one year of service shall be entitled to a
yearly service incentive leave of [five] TEN days with pay. 
“(b) 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] TEN 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 after 
considering the viability or financial condition of such establishment. 
“(c) The grant of benefit in excess of that provided herein shall not be made a subject 
of arbitration or any court or administrative action.” 
SEC. 2.  Implementing Rules and Regulations.  –  Within ninety (90) days from the approval 
of this Act, the Department of Labor and Employment shall promulgate the rules and regulations 
implementing the provisions of this Act which shall take effect thirty (30) days after its publication 
in any newspaper of general circulation. 
988


SEC. 3.  Repealing Clause. – All laws, decrees, orders, rules and regulations and other 
issuances or parts thereof which are inconsistent with the provisions of this Act are hereby repealed 
or amended accordingly. 
SEC. 4.  Effectivity. – This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in any newspaper of general circulation. 
 
Approved,