Every employee who has rendered at least one (1) year of service is entitled to a yearly service incentive leave of five (5) days with pay.
This Benefit does not apply to the following:
Government Employees
Domestic helpers and persons in the personal service of another
Managerial Employees
Field personnel and those whose time and performance is unsupervised by the employer
Those already enjoying this benefits
Those enjoying vacation leave with pay of at least five (5) days
Those employed in establishments regularly employing less than ten (10) employees
Meaning of "one year of service"
The phrase "one year of service" of the employee means service within 12 months, whether continuous or broken, reckoned from the date the employee started working. The period includes authorized absences unworked weekly rest days, and paid legal/regular holidays. Where by individual or collective agreement, practice or policy the period of working days is less than 12 months, said period shall be considered as one year for the purpose of determining entitlement to the service incentive leave.
Availment/Commutation to Cash
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. In computing, the basis shall be the salary rate at the date of commutation.
The availment and commutation of this benefit may be on a pro rata basis.
