Service Incentive Leave: The 5-Day Benefit Many Workers Don't Know About
After one year of service, Philippine law entitles you to 5 paid leave days. Learn who qualifies, how to use it, and what happens if you don't.
There is a leave benefit guaranteed by Philippine law that many workers have never heard of. It is called Service Incentive Leave, or SIL, and it gives you 5 days of paid time off every year. Whether your employer calls it vacation leave, sick leave, or something else, the law says you are entitled to at least 5 paid days. Here is everything you need to know.
What the law says
Article 95 of the Labor Code states that every employee who has rendered at least one year of service is entitled to a yearly Service Incentive Leave of 5 days with pay. This is a minimum standard — your employer may offer more, but never fewer than 5 days. The one-year requirement means you must have been employed for 12 months, whether continuous or broken, before you become eligible. Probationary employees who complete one year of total service also qualify.
How SIL can be used
The beauty of SIL is its flexibility. You can use your 5 days for any purpose — vacation, personal errands, rest, illness, or family emergencies. The law does not restrict how you use the leave. Some employers separate leave into "vacation leave" and "sick leave," but as long as the total adds up to at least 5 paid days, they are compliant with the SIL requirement. You do not need to justify why you are taking SIL.
What happens to unused SIL
If you do not use all 5 days by the end of the year, your employer must convert the unused days to cash. This is not optional — it is required by law. The conversion should be based on your daily rate at the time of conversion. Some companies carry over unused leave to the following year instead of converting to cash, which is also acceptable as long as you eventually get the value of those days. If you resign or are terminated, any unused SIL must be included in your final pay.
Who is excluded from SIL
Article 95 lists specific exclusions. You are not entitled to SIL if you are: a managerial employee, field personnel whose actual hours of work cannot be determined, a domestic worker (kasambahay, who are covered by RA 10361 instead), or employed in an establishment regularly employing fewer than 10 workers. You are also considered covered if your employer already provides vacation leave of at least 5 days with pay — the law does not require SIL on top of an existing leave benefit that meets or exceeds 5 days.
SIL versus company leave policies
Many companies offer 15 or more days of vacation and sick leave combined. In that case, SIL is already satisfied and you do not get an additional 5 days on top. However, if your company offers only 3 days of vacation leave and no sick leave, the law requires them to add at least 2 more days to reach the 5-day SIL minimum. The key question is whether your total paid leave — regardless of what it is called — adds up to at least 5 days per year after one year of service.
What to do if your employer denies SIL
If you have worked for at least one year, are not in an excluded category, and your employer does not provide at least 5 days of paid leave, they are violating the Labor Code. Start by raising it with your HR department in writing. If they refuse, you can file a complaint with the Department of Labor and Employment (DOLE) through the Single Entry Approach (SEnA) process, which is free and typically resolved within 30 days.
Check your contract with PlainDoc
Want to know if your employment contract meets the SIL requirement? Upload it to PlainDoc for an instant analysis. Our AI checks your leave provisions against Article 95 and flags any gaps — so you know exactly where you stand before you need to take a day off.