Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No.3463

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

Happy and well-rested individuals are healthier and more productive’. In line
with this, the bill proposed herein seeks to double the current service leave
entitlement of Filipino workers from five (5) days to ten (10) days with pay for every
year of service rendered.

Last 17" Congress, the House of Representatives (HOR) already approved
n third and final reading the bill increasing the paid incentive leave of employees
from five days to 10 days. The HOR unanimously agreed that the bill would benefit
the employers as much as it would the employees as the grant of such incentive
would boost the morale and satisfaction of employees which shall in turn, manifest in
their increased productivity. Leave credits also minimize the risks of health and
safety issues among employees which may be even costlier for both employers and
employees in the long run. Unfortunately, the 17" Congress adjourned sine die
before the same was finalized and enacted into law.

In consideration of the foregoing premises, this Representation humbly seeks
the quick passage of this bill for the benefit of our people whose hard work and
commitment fuel the national economy.

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LUIS R, 1) 'LRAY” F. VILLAFUERTE, JR.

* https://www sleep org/articles/5-ways-well-rested-improves-lifel


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Que3on City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _3463

Introduced by HON. LUIS RAYMUND “LRAY” F, VILLAFUERTE, 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 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 of
administrative action.”

SECTION 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.

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,