House Approves Bill That Increases Employee Leave Credits To 10

House Approves Bill That Increases Employee Leave Credits To 10

A measure that aims to increase the service incentive leave of employees to 10 days has been approved by the House of Representatives on third and final reading.

This measure is House Bill 1338, and it garnered 197 votes with no opposition. Its principal author is Baguio City Representative Mark Go, Deputy Speaker Luis Raymund Villafuerte, and 12 other lawmakers.

With this measure, employees who have rendered at least one year of service will be entitled to a yearly service incentive of 10 days with pay. This is 5 additional service incentive leave from the existing one in place. 

While current practices of many employers are to increase the number of leave credits to at least 12 a year, Go pointed out that it’s still left at the discretion of employers – it isn’t compulsory. So many employees are still left with no choice but to make do with five leave 

The granting of paid leaves is not only beneficial to the employees but economically advantageous for employers as well. Such incentives boost the morale and satisfaction of employees which are manifested in increased productivity.

Go also added that leave credits also minimize the risk of health and safety issues among employees which may even be more costly for both employees and employers in the long run.

This measure, however, does not include employees who are already getting at least 10 days of vacation leave with pay and those companies or establishments with less than 10 workers or employees. 

The Department of Labor and Employment is tasked to promulgate the implementing rules and regulations of the measure within 90 days from its effectivity. 


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