Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 3233 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
EXPLANATORY NOTE 
Service leaves allow employees to afford the necessary rest and recharge. It also 
enables workers to attend to personal appointments, events, and emergencies that often result 
in stress and exhaustion if unmet. Further, some studies suggest that supportive leave policies 
and practices significantly improve employee well-being by reducing stress, preventing 
burnout, and promoting a healthier work-life balance.1  
Currently, the Labor Code allows workers with a minimum of one year of service to 
afford service leaves for five days annually. However, as we continuously encounter extreme 
weather events, including typhoons and extreme heat, that affect class suspensions and the 
safety of children and workers, it is imperative to adapt our policies to the changing needs of 
our workers so as not to compromise wellness with the financial repercussions of work 
absence. The promotion of workers’ rights and welfare shall also be pursued in recognition of 
their fundamental role in economic growth and national development.  
Section 18, Article II of the 1987 Constitution provides that” The State affirms labor as 
a primary social economic force. It shall protect the rights of workers and promote their 
welfare.” In accordance with this constitutional mandate, this proposed measure seeks to 
amend Article 95 of the Labor Code, as amended, to increase the service leave entitlement of 
workers from five to 10 days annually with pay, subject to certain conditions.  
This bill was passed in third reading during the 17th, 18th, and 19th Congresses, 
showing the overwhelming support for the measure.  
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
HON. MIGUEL LUIS R. VILLAFUERTE 
1 Kitwange, A., Habi, R. (2024) The Impact of Leave Practices on Employees’ Well-being and Organizational Performance: The
Case of Morogoro Municipality, Tanzania. https://www.ijisrt.com/assets/upload/files/IJISRT24SEP321.pdf 
August 6, 2025
2:20 pm


HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 
HON. TSUYOSHI ANTHONY G. HORIBATA 
HON. TERRY L. RIDON 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 3233 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
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.”  
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 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.  
SECTION 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,