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Bill seeking to increase employee service incentive leave gets approved in the lower house

House Bill no. 988 authored by Baguio City Congressman Mark Go gets the final nod in the lower congress. This, after a staggering 273 yes votes, zero (0) no votes, and zero (0) abstained.

What is House Bill No. 988?

House bill no. 988 once it is enacted into law, it will amend Article 95, as amended, Presidential Decree no. 442 which is known as the Labor Code of the Philippines. The specific amendment will be on increasing the service incentive leave from 5 days to 10 days with pay given to every employee who has rendered at least one year of service.

Limitations of the Service incentive leave increase

While, the service incentive leave are afforded to every employee who has rendered at least one year of service, the house bill also provides, similar to the original provision, that such service incentive leave will not apply to the following:

  • those who are already enjoying the benefit
  • those enjoying vacation leave with pay of at least 10 days
  • 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.

According to Congressman Mark Go in the explanatory section of the bill, “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”

Source: House of Representatives


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