From the sun-kissed beaches of Boracay to the majestic rice terraces of Banaue, the Philippines is a land of natural wonders. Beyond its idyllic islands and vibrant culture, the Philippines is also home to an educated and skilled workforce — perfect for global businesses seeking to expand their team into Southeast Asia.
However, hiring remote employees also requires employers to navigate the labor code of the Philippines, including laws and regulations related to paid leave policies.
Annual Leave Entitlements
Service Incentive Leave
Filipino employees are granted five days of annual paid leave, known as Service Incentive Leave (SIL), after completing one year of service with their employer.
Employees can use this paid time off for sick or vacation leave, and any unused SIL can be converted to cash at the end of the year. However, most employers offer more than five days of paid annual leave, with 15 being the average. If an employer provides more than five paid days off per year they are not required to offer SIL.
Public Holidays
The Philippines recognizes 18 paid public holidays. These include 10 regular holidays, such as New Year’s Day, Independence Day, and Christmas Day, and eight special non-working holidays, such as Ninoy Aquino Day and All Saints’ Day.
If two holidays fall on the same day, employees are entitled to double holiday pay in addition to their regular full pay. The law also stipulates that employees working on a regular holiday receive double their daily wage. In addition, employees who work more than eight hours on a rest day or holiday receive additional compensation.
Sick Leave
In the Philippines, employers are not legally obligated to offer sick leave to their employees, aside from the five-day SIL. However, many employers voluntarily provide between 12 to 15 additional paid sick days.
Insured employees can claim 90% of their regular salary for up to 90 days of sick leave if hospitalized and if they’ve contributed to the Social Security System (SSS) for at least three months within the past year. The SSS reimburses the employer for this benefit.
Parental Leave
Pregnant women in the Philippines have the right to 105 consecutive days of maternity leave, initially paid for by the employer, who SSS later reimburses. Employees also have the option to request an additional 30 days of unpaid leave.
To qualify for maternity leave benefits, the pregnant employee must have worked for their employer for at least one year, with a minimum of six months of continuous service before the anticipated due date. In the event of a miscarriage, employees are eligible for 60 days of paid leave.
Male employees in the Philippines are granted seven days of paid paternity leave when their wife gives birth. This leave can be extended to 14 days if the mother transfers seven days of her maternity leave to the father. Paternity leave is available for the first four children and only applies to married employees.
Solo parents are entitled to seven days of paid leave each year to manage parental duties. To qualify, the employee must have at least one year of service and obtain a Solo Parental ID from the Department of Social Welfare and Development (DSWD).
Additional Types of Leave
Bereavement and Compassionate Leave
Employers in the Philippines are not legally required to provide bereavement leave for employees who lose a family member. The proposed Bereavement Act of 2022 would mandate 10 days of paid leave, but as of 2024, it has yet to pass.
However, many employers offer three to five days of paid bereavement leave to help employees grieve and manage funeral arrangements.
Magna Carta of Women
Under the Magna Carta of Women, female employees in the Philippines are entitled to up to two months of paid special leave if they undergo surgery due to gynecological disorders. Employees must have worked continuously with their employer for at least six months within the last year to qualify for this benefit.
The leave is available to women in the public and private sectors and is paid based on the employee’s gross monthly compensation, including basic pay and mandatory allowances.
Victims of Violence Against Women and Children Leave
Female employees in the Philippines who are victims of violence, as outlined in section 43 of Republic Act No. 9262, are entitled to up to 10 days of paid leave. Women can use this leave to recover, seek help, receive medical treatment, or attend legal proceedings, counseling, or therapy.
Employees must provide their employer with a barangay official, prosecutor, or court clerk certification indicating that legal action is underway. The leave is not cumulative and can’t be converted into cash if unused.
Military Leave
In the Philippines, there’s no law requiring paid military leave for employees. However, in 2022, House Bill No. 6377 was filed, proposing that military reservists should receive a week of paid leave to attend military training or take part in military activities. If passed into law, this bill would support reservists in fulfilling their duties without financial sacrifice.
Voting Leave
There’s no official voting leave in the Philippines. However, during the May 2022 national and local elections, the day was declared a special non-working holiday to give citizens time to vote.
Hire Global Talent in the Philippines
The Philippines is home to a talented pool of skilled professionals. However, keeping up with the intricacies of local employment laws can be challenging for global employers hiring remote Filipino employees.
An Employer of Record (EOR) streamlines the hiring process by managing all the legal aspects of employment. This includes handling payroll, taxes, and benefits and ensuring compliance with Filipino labor laws, such as paid leave.
Book a demo with Remofirst to learn how we can help simplify your hiring process and ensure compliance in 180+ countries.
