In the Philippine legal framework, "sick leave" is often a blend of mandatory statutory benefits and voluntary employer policies. While many employees assume a standard 15-day sick leave is mandated by law, the reality is more nuanced, involving the Labor Code, the Social Security Act, and specific special laws.

1. The Statutory Minimum: Service Incentive Leave (SIL)

The Labor Code of the Philippines (Article 95) does not explicitly use the term "sick leave." Instead, it mandates Service Incentive Leave (SIL).

Eligibility: Every employee who has rendered at least one year of service is entitled to a yearly service incentive leave of five days with pay.
Usage: These five days can be used for either vacation or sick leave.
Commutation: If unused at the end of the year, the law requires that these five days be converted to their cash equivalent based on the salary at the time of conversion.

Note: Employers already providing at least five days of paid vacation/sick leave are exempt from this specific provision of the Labor Code.

2. SSS Sickness Benefit

The primary "medical leave" pay in the Philippines is the SSS Sickness Benefit, a daily cash allowance paid for the number of days a member is unable to work due to sickness or injury.

Eligibility Criteria

To qualify for the SSS Sickness Benefit, a member must meet the following:

Confinement: The member is confined (at home or in a hospital) for at least four days.
Contributions: At least three monthly contributions have been paid within the 12-month period immediately preceding the semester of sickness.
Exhaustion: All company-provided sick leaves with pay for the current year have been exhausted.
Notification: The employer must be notified (or SSS, if unemployed/self-employed) within five days of the start of confinement.

The Computation Formula

The Sickness Benefit is equivalent to 90% of the member’s Average Daily Salary Credit (ADSC).

Step 1: Determine the Semester of Sickness A "semester" refers to two consecutive quarters. The semester of sickness is the one containing the month of the illness.

Step 2: Identify the 12-Month Period This is the 12-month period immediately preceding the semester of sickness.

Step 3: Calculate the ADSC Pick the six highest Monthly Salary Credits (MSC) within that 12-month period and add them together. Divide the sum by 180.

$$ADSC = \frac{\text{Sum of 6 highest MSCs}}{180}$$

Step 4: Final Benefit Calculation $$\text{Daily Allowance} = ADSC \times 0.90$$ $$\text{Total Benefit} = \text{Daily Allowance} \times \text{Approved number of days}$$

3. Special Medical Leaves Under Specific Laws

The Philippine legislature has carved out specific protections for various sectors and medical conditions:

Magna Carta of Women (RA 9710)

Women who undergo surgery due to gynecological disorders (such as myoma, ovarian cysts, or endometriosis) are entitled to a special leave benefit.

Benefit: Up to two months of leave with full pay.
Condition: The employee must have rendered at least six months of continuous aggregate employment service for the last 12 months.

VAWC Leave (RA 9262)

Victims of violence against women and their children are entitled to a paid leave of up to 10 days. This leave can be used for medical purposes, attending court hearings, or seeking legal assistance.

Solo Parents Leave (RA 8972, as amended by RA 11861)

Solo parents are entitled to seven days of parental leave with pay annually to attend to parental duties, which includes caring for a sick child.

4. Company-Granted Sick Leaves

In the private sector, most sick leave benefits beyond the 5-day SIL are governed by:

Company Policy: Discretionary benefits provided by the employer to attract talent.
Collective Bargaining Agreements (CBA): Negotiated benefits between a labor union and management.

These are usually credited at the start of the year (e.g., 15 days of Sick Leave). Unlike SIL, the law does not strictly require employers to convert these company-specific sick leaves to cash unless specified in the employment contract or CBA.

5. Summary of Payment Responsibilities

Benefit Type	Who Pays?	Amount
SIL (5 days)	Employer	100% of Daily Wage
SSS Sickness	SSS (via Employer Reimbursement)	90% of ADSC
Magna Carta (Women)	Employer	100% of Daily Wage
VAWC Leave	Employer	100% of Daily Wage

Taxation Note

Under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, SSS benefits and other statutory contributions are generally excluded from gross income and are tax-exempt. However, cash conversion of SIL in excess of 10 days (when combined with other de minimis benefits) may be subject to tax if they exceed the set thresholds.