SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
•■ ■■' '  *©fucf Df t..c:: 
..Ctarp
SENATE
'17 
NOV 20 niG 33
S. B. NO. 1614
RECLa' i-i. j ' .
Introduced by Senator JOEL VILLANUEVA
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
Article 95 of the Labor Code currently grants every employee who has 
rendered at least one year of service to a yearly service incentive leave of only five 
days with pay.
Recent studies have shown, however, that taking leaves increases the 
productivity of workers, improves employee morale, fosters stronger employee 
retention and gives significant health benefits. Meanwhile, some research also 
suggests that the cost of paid leaves to employers is very little, “in terms of 
temporary employee replacement costs or overtime paid to existing employees and 
has few if any costs-and potentially gains-in terms of employee morale and 
productivity.”1 In fact, in the Philippines, private companies often give vacation and 
sick leaves to their employees, above the mandatory five-day service incentive leave 
under the Labor Code, as an additional benefit.
Given the benefits of giving paid leaves to employees, this bill seeks to 
increase the mandatory 5-day service incentive leave under the Labor Code to 10 
days.
The immediate passage of this bill is earnestly sought.
SENATOR^OEL VILLANUEVA
Paid Parental Leave in the United States: What the data tell us about access, usage, and economic and health 
benefits. 
Available 
at 
https://iwpr.orq/wp-contentyuploads/wpallimport/files/iwpr-export/publications/B334- 
Paid%20Parental%20Leave%20in%20the%20United%20States.pdf (date last accessed: November 16, 2017)


SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
\ 
f n.V':
' . ©ftitf 01 • ' .........."n't,I*
SENATE
•17 
NOV 20 
A1,0:33
S. B. NO. 1614
RECEivl j  tj.
Introduced by Senator JOEL VILLANUEVA
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
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Be it enacted by the Senate and the 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, in consultation with 
relevant stakeholders, shall promulgate the implementing rules and regulations of 
this Act.


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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,