In other countries, Service Incentive Leave
may also be known as vacation leave or annual leave. In the Philippines, every
employee who has rendered at least 1 year
of service shall be entitled to 5 days of service incentive leave every
year. The service incentive leave may be used for sick and vacation
leave purposes. The unused service incentive leave is commutable to its money
equivalent at the end of the year.
Illustration: An
employee was hired on 1 January 2000 and resigned on 1 March 2001. Assuming
that he/she has not used or commuted any of his/her accrued SIL, he/she is
entitled to the conversion of his/her accrued SIL, upon his/her resignation, as
follows:
a) SIL earned as of 31 December 2000: 5 days
b) Proportionate SIL for January and February 2001: (2/12) x 5
days = 0.833 day
c) Total accrued SIL as of 1 March 2001: 5.833 days
Notes: Excluded employees are:
● Employees of government,
government-owned and/or controlled corporations;
● Kasambahay and persons in the personal service of another;
● Managerial employees including managerial staffs;
● Field personnel and other employees whose time and
performance is unsupervised by the employer.