Vacation and Holiday Leave in the Philippines

Vacation and holiday leave are important to employees for spending time with family and friends, or to just relax with a day off. This is especially true in the Philippines where family life is at the center of the culture, and the shared time is highly valued.

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But the statutory leave entitlements are not that generous in the Philippines compared to other countries, and as an employer you will want to take that into account when offering leave.  Many local employers will develop their own expanded leave policies. This guide will outline the minimum entitlements, and some employer practices to expand leave for employees.

How much vacation leave are employees entitled to in the Philippines?

Vacation leave in the Philippines is only five days per year, and is known as Service Incentive Leave (SIL).  It is only available after 1 year of service, so no leave is mandated in the first year.  However, many employers will offer vacation leave of 12-15 days a year as a company policy, or in the individual employment contract.  This is so common that many believe that the statutory minimum is more than five days.  

If you offer company vacation leave of more than five days, the employee cannot also claim the SIL days.  It is notable that there is no paid sick leave in the Philippines, so employees may end up using their vacation leave to avoid losing pay when ill.

What happens to unused vacation time?

Unused vacation leave can be... read more

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Tim Burgess

Director, Shield GEO Services Ltd