Congress Approved 10-Day Annual Service Incentive Leave

The House of Representative Approves a 10-day annual service incentive leave on third and final reading. A bill which aims to add five more days to the current 5-day yearly incentive leave.

House Bill 6770 seeks to amend Article 95 of Presidential Decree No. 442, or the Labor Code of the Philippines. 203 affirmative votes, with no negative votes or abstention received by the said bill which expected to “boost the workers’ morale, wellness, and productivity.”

It would entitle employees who have rendered at least one year of service to an annual incentive leave of 10 days once passed into law.

The prevailing law does not require employers to permit vacation and sick leaves. They give these privileges based on the prerogative of the employers or through a collective bargaining agreement as stated by Baguio Representative Mark Go, principal author of the said bill.

Employees may be a step closer to enjoying a 10-day annual service incentive leave but exemptions are still in effect. For example: it will exempt Employees who are already enjoying similar benefits such as vacation leave with pay at least ten days. The Labor and Employment exempts establishments using less than ten employees or companies/employers due to viability or conditions are not expected to provide the service incentive leave.

Much may think this bill will be disadvantageous to employers, but Go reasoned out it is beneficial to both employees and employers.

He said, “The granting of such incentive boosts the morale and satisfaction of employees it manifests which 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,”

It will transmit the approved bill to the Senate for its concurrence after the Third and Final reading. It will be gone through a conference committee before being signed by the President if the Senate also approved it.

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