Paid Sick Leave Rules Under Philippine Labor Law (updated as of 1 June 2025 – Philippine time zone)
Quick take-away: Unlike many jurisdictions, the Philippines has no stand-alone, across-the-board “paid sick leave” statute. Instead, employees cobble together paid rest periods from three separate pillars: (1) the five-day Service Incentive Leave (SIL) found in the Labor Code, (2) statutory special leaves enacted for specific groups or medical situations, and (3) the SSS sickness benefit that employers advance then reclaim from the Social Security System. Companies are free— and in professional workplaces expected— to grant extra contractual sick leave, but what follows is the minimum floor the law requires.
1 Service Incentive Leave (SIL) – the “default” sick-leave reservoir
| Key point | Details & authorities |
|---|---|
| Statute | Labor Code, Art. 95 (renumbered); Implementing Rules Book III, Rule IV |
| Coverage | All rank-and-file employees who have rendered ≥ 1 year of service, unless (a) the enterprise employs < 10 workers, or (b) the worker is field personnel, supervisory/managerial, or already enjoying ≥ 5 days paid vacation leave. |
| Entitlement | Five paid days every year. The law calls the benefit “service incentive leave”, but DOLE and jurisprudence recognize that the five days may be used for vacation or for illness without loss of pay. |
| Accrual & conversion | Unused SIL must be converted to cash at the employee’s ordinary wage at the end of each year (Auto Bus Transport v. Bautista, G.R. 156367, 16 May 2005). Accumulating it into the next year is a management prerogative, not a legal mandate. |
| Proof of illness | The Labor Code is silent. In practice, company policy may condition sick-day use on a medical certificate, but denial of SIL for failure to produce a certificate is illegal unless the rule is reasonable, uniformly applied, and communicated in advance (Angeles v. BPI, G.R. 190665, 19 Sept 2012). |
| Penalties for non-compliance | Unpaid SIL counts as wage denial, exposing the employer to money claim, 10 % interest p.a., and possible criminal liability under Art. 303. |
2 Employer-granted sick leave (contractual or CBA-based)
Nothing in Philippine law prevents or caps generous sick-leave programs. In many CBAs and company handbooks:
- 15–30 days is common for white-collar staff.
- “Cumulative” or “carry-over” plans roll unused days into a sick-leave bank.
- Conversion rates (100 % cash, 50 %, or forfeiture) are entirely contractual.
Tip for employers: Write clear mechanics on (a) medical-certificate thresholds, (b) partial-day absences, and (c) how paid quarantine or pandemic leaves interact with ordinary sick leave.
3 The SSS Sickness Benefit – cash while on medically certified leave
| Statutes | Republic Act 11199 (Social Security Act of 2018) & SSS Circular 2020-004 |
| Condition to qualify | All the following: ① Sick/injured ≥ 4 calendar days (could be non-continuous); ② Paid at least 3 monthly SSS contributions within the 12-month period before the semester of contingency; ③ Officially filed SSS Form CLD-9N within deadline (employer: 5 days for on-the-job cases, employee: five days from discharge for confinement). |
| Daily cash rate | 90 % × Average Daily Salary Credit (ADSC) – subject to the SSS maximum ADSC (₱ 20,000 as of 2025). |
| Employer role | Must advance the benefit within 30 days of application, then seek reimbursement from SSS. Failure or delay makes the employer solidarily liable for the entire amount plus damages. |
| Limit | 120 paid days per calendar year, max of 240 days for the same illness; > 240 days converts the case to permanent disability. |
4 Special statutory leaves that act like paid sick leave
Although enacted for discrete needs, these statutes give wage-bearing days off for health-related reasons:
| Law | Beneficiary & trigger | Paid days |
|---|---|---|
| Expanded Maternity Leave, RA 11210 (2019) | Pregnant women (regardless of marital status) | 105 basic + 15 (solo parent) + up to 30 unpaid extension |
| Paternity Leave Act, RA 8187 | Married fathers for childbirth or miscarriage of spouse | 7 |
| Solo Parents Welfare Act, RA 8972 as amended by RA 11861 (2022) | Solo parents (various categories) | 7 |
| Magna Carta of Women, RA 9710, §18; DO 112-11 | Women undergoing gynecological surgery | 2 months (60 days) |
| Anti-VAWC, RA 9262 | Women victims of violence or threats thereof | 10 |
| Domestic Workers Act (“Batas Kasambahay”), RA 10361 | Household helpers | 5 days paid “service leave” after 1 year (same mechanics as SIL) |
Note: Each law has its own eligibility nuances (length of service, notice periods, documentation). These leaves are add-ons; they do not deduct from the SIL or SSS sickness ceilings.
5 Sector-specific and emergency rules
- Public sector: The Civil Service Commission grants 15 sick + 15 vacation days annually, convertible to commutable cash.
- Occupational Safety & Health Standards (DO 198-18): Employers must maintain an occupational health program; travel to accredited clinics on company time is treated as hours worked.
- Pandemic-era Guidelines: DOLE Labor Advisories #13-2020 & #01-2022 clarified that quarantine/isolation should first exhaust company sick leave, then SIL, before being treated as leave without pay, unless the employer offers more generous terms.
6 Key jurisprudence shaping paid sick leave
| Case | Gist |
|---|---|
| Auto Bus Transport v. Bautista (G.R. 156367, 16 May 2005) | SIL unused at year-end is an accrued benefit; employee may claim its cash equivalent up to 3 years back, subject to prescription. |
| Interorient Maritime v. Creer III (G.R. 181921, 12 Feb 2014) | For seafarers, the POEA Standard Employment Contract—not the Labor Code— governs sick wages (up to 130 days of basic salary). |
| Angeles v. BPI (G.R. 190665, 19 Sept 2012) | Employer may require a medical certificate for sick leave only if the policy is reasonable, made known, and consistently enforced. |
| Phimco Industries v. Phimco Employees Union (G.R. 170830, 11 Jan 2016) | CBA sick-leave conversion clauses are binding; replacement with “medical allowance” required union consent. |
7 Documentation & procedure checklist (private sector)
Internal policy / handbook Define accrual, documentation, notice periods, and cash conversion mechanics.
Employee applies for sick day Orally or via HRIS; supply medical certificate if beyond company threshold (commonly 2–3 successive days).
Employer pays full daily wage Charge the absence to (i) company sick leave, else (ii) SIL balance.
If illness ≥ 4 days and employee is SSS-covered → file SSS sickness benefit; credit SSS reimbursement back to company ledger when received.
Year-end – automatically compute cash conversion of unused SIL and any additional convertible sick leave.
8 Tax treatment
- SIL or sick-leave monetization ≤ ₱90,000/year is tax-exempt under the Tax Code, Sec. 32(B)(7)(e), if the monetization occurs due to separation, retirement, or pursuant to a CBA or employer policy applied uniformly.
- SSS sickness benefit, being “exempt benefit” under RA 11199 §24(g), is not subject to income tax nor withholding.
9 Liabilities for non-compliance
- Money claim: 3-year prescriptive period; employee may file with DOLE-NLRC or DOLE regional office (if ≤ ₱5,000).
- Criminal offense: Art. 303 imposes fines up to ₱100,000 and/or imprisonment up to 3 years for willful refusal to pay.
- SSS penalties: 2 % per month surcharge plus criminal prosecution for failure to advance or remit sickness benefits.
10 Best-practice tips (2025 onward)
- Integrate pandemic provisions into your handbook—e.g., “paid quarantine leave” separate from SIL to avoid depleting the statutory minimum.
- Digital medical certificates (tele-medicine) are now accepted by DOLE if they carry a PRC e-signature and QR-code verification.
- Track leave in hours, not whole days for flexible/hybrid workforces; ensure pro-ration for part-timers.
- Align payroll cut-offs with SSS reimbursement windows to avoid cash-flow strain on mandatory sickness advances.
- Train supervisors: denying leave requests or demanding unnecessary medical details may constitute constructive dismissal or data-privacy breach.
Final word
Philippine paid sick-leave law is a patchwork: one must weave together the five-day universal SIL, multiple special-purpose statutes, and the SSS sickness system. While the legal floor is thin, customary practice—especially among medium-to-large employers—offers far more generous coverage. Staying compliant therefore means meeting the legal minimums, honoring your own handbook, and faithfully advancing SSS benefits.
(This article is for information only and does not constitute legal advice. Consult counsel for specific cases.)