Service Incentive Leave

Read also: GUIDELINES ON THE COMPUTATION OF SALARY DIFFERENTIAL OF FEMALE WORKERS DURING HER MATERNITY LEAVE

• Service incentive leaves are five (5) leave credits with full pay.

• Not all employees may avail the service incentive leave.

• The service incentive leave shall be commutable to its money equivalent if not used or exhausted at the end of the year.

Service incentive leaves are five (5) leave credits with full pay given to qualified employees who have rendered at least one (1) year of service. However, not all employees may avail the service incentive leave.

Omnibus Rules Implementing the Labor Code provides that:

The rule shall apply to all employees except:

(a) Those of the government and any of its political subdivisions, including government-owned and controlled corporations;

(b) Domestic helpers and persons in the personal service of another;

(c) Managerial employees;

(d) Field personnel and other employees whose performance is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof;

(e) Those who are already enjoying the benefit herein provided;

(f) Those enjoying vacation leave with pay of at least five days; and

(g) Those employed in establishments regularly employing less than ten employees.

The term “at least one-year service” shall mean service for not less than 12 months, whether continuous or broken reckoned from the date the employee started working, including authorized absences and paid regular holidays unless the working days in the establishment as a matter of practice or policy, or that provided in the employment contract is less than 12 months, in which case said period shall be considered as one year.

The service incentive leave shall be commutable to its money equivalent if not used or exhausted at the end of the year.

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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