When attracting highly skilled talent in the Philippines, you need to understand their rights as workers, treat them fairly, and provide attractive compensation and benefits packages for them. This includes having knowledge about the Philippines’ leave policy, sick leave, maternity leave, etc.
In this detailed guide, we will provide everything you need to know about the leave and paid time off policy in the Philippines, including the allowed leave, the number of sick leave days per year, and the holiday leave computation in the country.
The Philippines introduces a unique system known as Service Inclusive Leave (SIL). This provision grants an employee five (5) paid days off per year, following the completion of one year of service.
Although the SIL provides a basic framework, employers in the Philippines often extend beyond these provisions to make their annual leave policy more attractive. Any statutory leave left unused by the end of the year or upon an employee’s exit is typically paid out.
In the Philippines, the holiday leave policy is quite generous compared to other nations. The country recognises various public holidays each year, during which employees are generally entitled to have the day off with pay.
There are generally two types of working holidays in the Philippines: regular holidays and special non-working holidays. Regular holidays include New Year’s Day, Labour Day, Independence Day, National Heroes Day, Rizal Day, Bonifacio Day, and Christmas Day.
If employees work on regular holidays, they are entitled to double their regular wage (200%) and an additional 260% of their hourly rate on overtime after 8 hours of work. Meanwhile, those who opt not to work are entitled to 100% of their wage or holiday pay.
Special non-working holidays, on the other hand, are days designated throughout the year that do not adhere to the standard rules for regular holidays. These holidays include Chinese New Year, EDSA People Power Revolution, Ninoy Aquino Day, All Saints’ Day, and any additional special days declared by the government.
If a worker does not report to work, they are not entitled to any pay unless there is a favourable company policy or collective bargaining agreement requiring payment for holidays. If an employee works on a special (non-working) holiday, the standard wage computation is their basic wage multiplied by 130% plus the Cost-of-Living Allowance (COLA). When employees engage in work during a special non-working holiday that falls on a weekend, their compensation for the initial 8 hours will be calculated at 150%. Should their work extend beyond these 8 hours, the rate for additional hours will be adjusted to 195% of their standard hourly rate.
For international companies drafting their holiday leave policy, it is crucial to note that holiday pay entitlement in the Philippines applies to all workers, regardless of the nature of their employment and how they are paid, whether monthly or daily.
There are no specific statutory requirements regarding emergency leave policy in the Philippines. Generally, the emergency leave policy is managed according to the terms set by employers or as stipulated within internal company policies.
However, it is common for employers in the Philippines to allow emergency leave under circumstances that require an employee’s sudden or unexpected unavailability, such as family emergencies or other urgent personal matters.
Typically, employer policies on emergency leave specify the conditions that qualify as an “emergency,” the procedure for requesting such leave, and the payment of the leave. If an employer unjustly refuses an emergency leave request, employees may seek recourse through the Department of Labour and Employment (DOLE). This could involve filing a complaint against unfair labour practices if the refusal violates any established labour laws or the employee’s contractual rights.
There are no specific statutory requirements regarding the policy of half-day leave in the Philippines. Half-day leave can vary from one employer to another, depending on the company’s leave policy and how they manage partial-day absences. This is often detailed in company handbooks and internal policy documents.
While the labour code mandates a yearly service incentive leave, which primarily outlines full day leave accrual, companies might allow these or other leave types to be taken on a half-day basis, depending on their internal policies.
Marriage leave policy may vary between companies as there are no specific requirements for marriage leave outlined in the Philippine labour law. However, some employers might offer marriage leave as part of their benefits package to support their employees during significant life events.
While the Philippines does not specifically mandate sick leave, it is a common practice among employers in the Philippines to provide sick leave as part of the employment contract or as a company policy. Companies in the private sector usually provides sick leave between 12-15 days annually.
During hospitalisation exceeding a three-day period, employees who have consistently contributed to the Social Security System (SSS) for at least three months over the last year are entitled to benefits that cover up to 90% of their average daily wage.
Expecting mothers who have completed at least one year of service are entitled to 105 calendar days of paid maternity leave, which can be used in instances of pregnancy, miscarriage, or emergency termination of pregnancy.
If the worker has made at least three monthly contributions to the Social Security System (SSS) in the 12-month period immediately preceding her childbirth or miscarriage, they will be paid a daily maternity leave benefit equivalent to 100% of the average daily salary. The employer will make the full payment and will be reimbursed by the Social Security System up to a cap of 70.000 PHP. Mothers can also choose to take an additional 30 days of maternity leave without pay.
All covered females, regardless of their civil status, employment status, or the legitimacy of their child, are entitled to these benefits.
The maternity leave policy in the Philippines has been expanded under Republic Act No. 11210, also known as the “105-Day Expanded Maternity Leave Law”. This law provides 105 days of paid leave to female workers, both in the private and public sectors, in the event of childbirth or miscarriage. The law also allows the allocation of up to seven (7) days of the 105-day maternity leave to the child’s father, whether or not they are married.
The single parent leave is a component of the broader benefits outlined under the Solo Parents’ Welfare Act of 2000 (Republic Act No. 8972). One notable provision of this Act is the entitlement of seven days of additional parental leave annually, exclusive to solo parents who have rendered at least one year of service.
Moreover, the 105-Day Expanded Maternity Leave Law grants an additional 15 days of paid leave to solo parents, and there is an option to extend maternity leave for an additional 30 days without pay.
Under the paternity leave law in the Philippines, also known as the “Paternity Leave Act of 1996 (Republic Act No. 8187), married male employees are entitled to seven (7) days of paid paternity leave for the first four deliveries of their legitimate spouse.
There is no legal prohibition against extending parental leave benefits. Companies can provide extended paternity leave to their employees, which can be attractive to top-tier talent who value family-friendly workplace policies.
In the Philippines, the parental leave policy covers a variety of legislation designed to support parents in the workforce, focusing on paternity leave, maternity leave, and solo parent leave.
The Paternity Leave Act of 1996 (RA 8187) grants married fathers up to 7 days of paternity leave with full pay for the first four deliveries or miscarriages of the lawful wife. Meanwhile, the Extended Maternity Leave Law (Republic Act No. 11210) significantly extends maternity benefits, offering 105 days of paid leave to expectant mothers and an additional 15 days for solo parents.
Moreover, the Solo Parent Welfare Act (RA 8972) provides further support by offering an extra 7 working days of leave for solo parents, aiming to accommodate the unique challenges faced by single parents in managing work and family responsibilities.
These laws collectively form a comprehensive framework that supports the holistic well-being of employees and their families. Importantly, these policies also reflect the Philippines’ commitment to uphold family values and gender equality in the workplace.
Section 20 of the “Domestic Adoption Act of 1998” is a key provision that supports adoptive parents in the Philippines. The act stipulates that qualified female employees, as well as single male employees, are entitled to sixty (60) days of paid leave for the purpose of adopting a child.
In terms of requirements to avail of adoption leave, the employee must be qualified adoptive parents. The specific details regarding the eligibility criteria, documentation required, and application process for adoption leave might involve submission of the adoption decree or order, proof of the adoptive child’s citizenship and age, and evidence of the adoptive relationship between the employee and the child.
There are other types of leave companies offer to their employees in the Philippines, including:
It is a common practice among employers to offer bereavement leave as part of their benefits package. Typically, companies offer three to five (3-5) days of bereavement leave, giving employees the necessary time to grieve, attend funeral services, and manage any associated family affairs.
The business value of having a bereavement leave policy lies not just in the provision of compassionate care but also in its capacity to enhance the overall work culture. It promotes loyalty, reduces stress-related absences, and can positively influence how employees perceive their employer’s sensitivity to life’s challenging moments.
The Magna Carta of Women (Republic Act No. 9710) specifies the provisions that protect women’s health rights, including leave benefits related to reproductive health.
Under Section 18 of this Act, female employees who have at least six months of continuous services in the public and private sectors are entitled to a special leave benefit of up to two months with full pay, based on their gross monthly compensation, following surgery caused by gynaecological disorders.
A female employee who falls victim to domestic violence, whether physical, sexual, or psychological, is entitled to paid leave of up to 10 days leave to attend medical and legal concerns. This can be extended for legal or medical reasons.
Domestic violence leave in the Philippines is specifically provided under the “Anti-Violence Against Women and Their Children Act of 2004” (Republic Act No. 9262), which offers legal protections and support for women and their children who are victims of violence. This leave is provided on top of other paid leave under the Philippine labour laws and can be used to address issues related to the violence they have experienced, such as attending to medical needs, seeking legal assistance, or attending court hearings.
The grant of domestic violence leave aims to protect female employees by ensuring their job security while they are handling the intricacies involved with domestic violence cases. Employers are required to respect the confidentiality of requests for domestic violence leave, given the sensitive nature of the situation for the involved employee.
Some employers provide leave for employees who wish to continue their education or attend training programs that will be beneficial to their job performance and career growth.
A more cultural and motivational leave is provided by some Filipino companies, where employees are entitled to a day off on or around their birthday.
Specifically intended to encourage employees to manage their health proactively, this allowance may cover medical checkups or mental health days.
The Labour Advisory No. 27, Series of 2023, issued by the Department of Labour and Employment (DOLE) in the Philippines, provides detailed guidelines for the payment of wages for regular holidays and special (non-working) days for the year 2024.
In the Philippines, special working holidays are introduced through legislative acts and presidential proclamations. For employees who work on these days, the usual daily rate applies without an additional holiday premium. This policy contrasts with regular holidays, which offer higher pay rates for workers. The government periodically reviews and designates these holidays to reflect the country’s evolving cultural, historical, and economic landscape, providing an official list annually.
As an employer in the Philippines, you need to understand your employees’ rights and entitlements. But keeping up with them can be a lot of work.
When you partner with CXC, you gain a dedicated team focused on engaging with your international workers. We’ll handle all HR and administrative tasks—from meticulously tracking entitlements like leave and paid time off to handling onboarding and ongoing employee engagement. All of these are done with full compliance to protect your workers and your business.
Speak to our team today, and we’re here to guide you through expanding into new markets quickly and compliantly.
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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