Leave Policy in the Philippines

Vacation leave in the Philippines

Employees in the Philippines may take an annual vacation leave of 5 days, which is the minimum mandate by local laws. Employers may choose to extend these at their discretion. There is no carry forward leave policy in Philippines. All unused statutory annual leave gets encashed at the end of the year or during exit.

Public holidays in the Philippines

Special holidays change each year and are announced by the government. On these mandatory holidays, employees must get a day off from work. Employees who are made to work on holidays are entitled to 200% of their normal wages.

During these holidays, employees have a right to their normal pay except for those working in the retail industry, in service establishments, or for companies that employ fewer than 10 employees.

Holiday Calendar for the Philippines in 2024

New Year’s Day (1 January)
Chinese New Year (10 February)
Maundy Thursday (28 March)
Good Friday (29 March)
Black Saturday (30 March)
Araw ng Kagitingan (9 April)
Labour Day (1 May)
Independence Day (12 June)
Ninoy Aquino Day (August 21)
National Heroes Day (26 August - last Monday of August)
All Saints' Day (1 November)
All Souls' Day (1 November)
Bonifacio Day (30 November)
Feast of the Immaculate Conception (8 December)
Christmas Eve (24 December)
Christmas Day (25 December)
Rizal Day (30 December)
Last Day of the Year (31 December)

Sick leave in the Philippines

Employers are required, by law, to provide adequate assistance for medical and dental emergencies and to ensure proper medical treatment is provided to injured or sick employees.

If a company has more than 200 employees and employs workers in a hazardous environment, there must be a full-time registered nurse on duty to take care of medical treatment for employees.

Employees are entitled to 12 days of sick leave for the first two years of service with a company and an additional day per year following that, for a total of 15 days of annual sick leave.

Maternity leave in the Philippines

Pregnant employees in the Philippines who had worked at least six months during the prior 12 months are entitled to fully paid maternity leave.

Employees must take maternity leave two weeks before the expected date of delivery and then four weeks following childbirth, abortion, or miscarriage. Before approving maternity leave, an employer should be given a medical certificate from a doctor certifying that the expected due date is within two weeks.

If there are medical complications resulting from childbirth, maternity leave can continue without pay. Employers must provide paid maternity leave to employees with only up to four deliveries for each employee throughout her career with the company.

Female employees may allocate up to seven days of leave to the father of the child. This leave is paid and is allowed regardless of the marital status of the father. The father would normally need to be married to the mother of the child to be able to take paid paternity leave.

If the mother dies or becomes permanently incapacitated, the remaining balance of maternity leave will go to the father of the child or a qualified caregiver.

Paternity leave in the Philippines

Statutory Minimum mandate is 7 calendar days.

• Paternity Leave is granted to all married male employees in the private sector, regardless of their employment status (e.g., probationary, regular, contractual, project basis).
• Paternity leave benefit shall apply to the first four deliveries of the employee’s lawful wife with whom he is cohabiting. For this purpose, “cohabiting” means the obligation of the husband and wife to live together. If the spouses are not physically living together because of the workstation or occupation, the male employee is still entitled to the paternity leave benefit.

Childcare Leave in the Philippines

Statutory minimum mandate is 7 working days as per the local labor laws.

Special leave in the Philippines

There are situations in addition to the situations above to which some employees in the Philippines are entitled.

Special Leave Benefit For Women in the Philippines

There is a special leave in the Philippines called the Special Leave Benefit for Women or the Magna Carta for Women (Special Leave). This leave grants 60 days off from work following surgery for gynecological disorders. Entitlement for this leave is six months of continuous employment during the 12 months before the surgery.

Victims of Violence Against Women and Children Leave

There is also a leave called the Victims of Violence Against Women and Children Leave. This special leave grants 10 days off to women who have to go through legal issues or medical treatment as a result of violence against them or their children.

This leave can be used as the employee needs to use it, whether all at once or separated, though it can not be rolled over into the following year nor cashed out at the termination of employment.

Bereavement leave

Employees in the Philippines may take bereavement leave of three days when an immediate family member dies. An immediate family member includes a spouse, child, parent, grandparent, brother, sister, and parents-in-law.

Special Incentive Leave in Philippines

Employees in the Philippines who have worked for a company for a full year are entitled to take five working days of paid leave per calendar year. This fully paid annual leave is called the Special Incentive Leave or the Service Incentive Leave in the Philippines.

The Secretary of Labor and Employment exempts establishments employing fewer than 10 employees from having to provide paid annual leave to its employees.

Leave policy in the Philippines

Employers must provide all the statutory benefits to which employees are entitled in their benefits package. When creating a leave policy in the Philippines, employers must include all of the mandatory leave entitlements. These are all the leave that employees must get at a minimum, by law.

Since the employer of record already has a local legal entity, your company would not need to establish one. Your company can thus minimize the risk of permanent establishment, which would require your company to pay a corporate tax, and also saves the time, effort, and expense of building a local legal entity, which is unnecessary and expensive.

In addition to helping your company hire and pay employees, an employer of record can help your company develop a comprehensive and competitive benefits package to attract the best talent, including providing statutory benefits and developing an attractive leave policy.

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