NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S. No.
SENATE
1511
't'“ ' isitnf o( llir (’I 'lp
•22 NOV 16 All :26
RECEIVED BV.
Introduced by Senator Manuel "Lito" M. Lapid
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
Section 18, Article II of the 1987 Constitution affirms the State Policy that views 
labor as a primary social economic force. It mandates the State to "protect the rights 
of workers and promote their welfare." The government fulfills this responsibility by 
providing our workers with a set of statutory benefits, incentives and protective 
measures.
Under the Labor Code, an employee who has rendered at least one year of 
service is entitled to a yearly service incentive leave (SIL) of five (5) days with pay. 
However, the same Code provides that if the employer opts to grant employees with 
vacation leaves of at least five (5) days, the employer shall be deemed compliant with 
the mandatory grant of the SIL. In effect, the mandatory leave credits are at a 
minimum of five (5) days only. Further, as regards sickness leaves, the same are 
discretionary on the part of the employers.


Increasing the grant of paid leaves is not only advantageous on the part of the 
employees, but that of the employers as well. Indeed, getting time off from work 
every now and then is a good way to prevent occupational stress and burnout and 
promote work-life balance. Additional leaves are likewise beneficial to employers as 
this would improve the employees' morale, well-being, and productivity, as well as 
employee retention. Thus, this bill seeks to increase the SIL of employees from 5 days 
to 10 days for every year of service rendered.
Mahalagang aspeto ng worker's welfare and benefits ang pagkakabob ng mga 
leaves upang ang ating mga manggagawa ay magkaroon ng pahanon para sa kani- 
kanilang mga pamilya, bakasyon, gumaling habang may sakit at makapaglaan ng eras 
sa sarUi. Anumang dagdag na service incentive leave ay maiaking tuiong sa kaniia at 
ito ay pagsunod sa mandate sa ating Saiigang Batas sa pagseseguro ng makataong 
kondisyon ng trabaho.
In view of the foregoing, early passage of this bill is earnestly requested.
[ANUEL "LITO" M. LAPID
Senator


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 1511
of tin' ^'■'frrtnrj’
•22 NOV 16 AH 26
RECEIVED BY;
Introduced by Senator Manuel "Lito" M. Lapid
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 the House of Representatives of the Philippines 
in Congress assembled:
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SECTION 1. Article 95 of Presidential Decree No. 442, as amended, otherwise
2 
known as the "Labor Code of the Phiiippines", is hereby amended to read as follows:
3 
"Article 95. Right to service incentive leave. -
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"(a) Every employee who has rendered at least one year of
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service shall be entitled to a yearly service incentive leave of [five] TEN
6 
days with pay.
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"(b) This provision shall not apply to those who are already
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enjoying the benefit herein provided, those enjoying vacation leave
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with pay of at least [five] TEN days and those employed in
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establishments regularly employing less than ten employees or in
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establishments exempted from granting this benefit by the Secretary


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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."
SECTION 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.
SECTION 3. Repealing Clause. — All existing laws, orders, decrees, rules and 
regulations, or parts thereof, inconsistent with the provisions of this Act are hereby 
amended, modified, or repealed accordingly.
SECTION 4. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation.
Approved,