Vacation Leave and Sick Leave Entitlements After 6 Months in the Philippines

1) Core rule: there is no universal “6-month” entitlement to paid VL or SL

In the Philippines, many employees assume that once they reach six (6) months of service, the law automatically grants paid vacation leave (VL) and paid sick leave (SL). As a general rule under national labor law, that is not how it works. For most private-sector employees, the Labor Code does not mandate a fixed number of paid VL or paid SL days simply because an employee has completed six months.

What the law does mandate for many employees is Service Incentive Leave (SIL)—a minimum paid leave benefit that becomes relevant once an employee reaches one (1) year of service, not six months.

Because of this structure, after 6 months, your paid leave rights are usually determined by:

  • your employment contract
  • the employer’s company policy/handbook
  • a collective bargaining agreement (CBA) (if unionized)
  • DOLE-recognized practice (a consistent, long-standing benefit can become enforceable)
  • special laws (e.g., special leave for women, parental leaves)
  • local ordinances (rare, but possible in specific jurisdictions)

2) Service Incentive Leave (SIL): the legally required “baseline” leave

2.1 What SIL is

Service Incentive Leave (SIL) is a statutory leave benefit under the Labor Code for covered employees:

  • At least five (5) days of paid leave per year of service.
  • The law allows this leave to be used for either vacation or sick purposes (the statute does not force employers to split it into VL vs SL).

2.2 When SIL is earned

SIL becomes due after one (1) year of service. That means at the 6-month mark, SIL is generally not yet legally demandable, unless:

  • the employer’s policy grants it earlier (e.g., “SIL prorated at 6 months”), or
  • the employer already gives paid leave more generous than SIL and treats it as earned earlier.

2.3 “VL and SL” versus “SIL”

Many employers choose to label leaves as:

  • Vacation Leave (VL) (for rest/recreation)
  • Sick Leave (SL) (for illness/medical) …and then offer a package like 10 VL + 10 SL. In many cases, those are company-granted benefits, not direct statutory entitlements.

A common compliance approach is:

  • Provide VL/SL that is at least equivalent to SIL (5 paid days/year) for covered employees, and then treat SIL as already satisfied by the broader leave plan.

2.4 SIL commutation (cash conversion)

As a general labor standard principle:

  • Unused SIL may be converted to cash (commuted), typically at year end or upon separation, subject to the employer’s policy and payroll computation rules.
  • Employers often cash-convert unused leave that is legally required (SIL or its equivalent). For leave benefits over and above SIL, cash conversion depends on policy/contract/CBA.

3) Coverage and common exemptions from SIL

SIL does not apply to everyone. In practice, entitlement depends heavily on the employee’s classification and the employer’s industry/structure. Commonly discussed exclusions include certain:

  • government employees (governed by civil service rules, not the Labor Code scheme)
  • domestic workers (kasambahay) (covered by a separate law with different leave standards)
  • specific managerial or field categories depending on how work is supervised/paid, and
  • establishments or categories recognized by regulation as outside SIL coverage.

Because classification disputes can arise, the real-world question is often: Is the employee covered by SIL, and if not, what leave benefits are provided by contract/policy or special laws?

4) The “6 months” mark: what actually changes at six months

Although six months does not automatically trigger VL/SL by statute, six months matters in other ways:

4.1 Regularization (probationary period commonly up to 6 months)

Many employees are hired on a probationary basis, and probation typically cannot exceed six (6) months unless a longer period is allowed by law for specific jobs or circumstances. Upon becoming a regular employee, many companies:

  • begin granting VL/SL accrual, or
  • lift restrictions on using leave, or
  • allow conversion/monetization, or
  • increase leave credits

These are typically policy-driven, not automatic statutory VL/SL rights.

4.2 Leave accrual practices during probation

Common practices include:

  • No paid leave during probation, then credited upon regularization
  • Accrual during probation but usable after regularization
  • Prorated annual leave after 6 months (e.g., 5 days prorated) These practices are generally lawful if they comply with minimum labor standards and are not discriminatory, but the enforceability depends on what was promised in writing or established by consistent practice.

5) Sick leave: not a standalone statutory entitlement in the private sector (but related protections exist)

5.1 No general “paid sick leave law” for all private employees

There is no single nationwide rule that says: “After 6 months, every private employee gets X paid sick leave days.” Paid SL is usually a company benefit unless embedded in a CBA.

5.2 Protections when you are sick (even without paid SL)

Even if paid SL is not legally required, several legal principles still matter:

  • Security of tenure rules constrain termination due to illness; dismissals must meet substantive and procedural standards.
  • Employers must observe due process if discipline/termination is considered.
  • Occupational safety and health duties require safe workplaces and may require protocols for illness exposure and workplace hazards.
  • If the illness is work-related, employees may have claims under employees’ compensation mechanisms (separate from ordinary paid SL credits).

6) Vacation leave: also typically policy-based in the private sector

As with sick leave:

  • Paid vacation leave is generally not mandated as a separate category by national labor law for most private employees.
  • Employers may provide VL as part of total leave credits, sometimes exceeding the minimum SIL equivalent.

7) Other leave entitlements that may apply regardless of “6 months”

Even if VL/SL is policy-based, employees may have rights to special statutory leaves depending on circumstances and eligibility. Examples include:

7.1 Maternity leave

Maternity leave is governed by special legislation providing paid leave benefits subject to eligibility requirements and coordination with social insurance rules.

7.2 Paternity leave

Married male employees may be entitled to paternity leave under a special law, subject to conditions.

7.3 Parental leave for solo parents

Qualified solo parents may receive parental leave benefits under the Solo Parents’ framework, subject to documentation and eligibility.

7.4 Leave for victims of violence (VAWC leave)

Certain employees who are victims of violence against women and their children may be entitled to a special paid leave.

7.5 Special leave benefit for women (gynecological surgery)

A special leave benefit exists for qualified female employees who undergo qualifying gynecological procedures, subject to conditions.

These special leaves are not “VL” or “SL” in the ordinary company sense, and they are triggered by status/events rather than length of service alone. Eligibility details matter greatly.

8) The role of company policy, contract, and CBA

8.1 Contract and handbook terms control most VL/SL questions at 6 months

Because statutory VL/SL after 6 months is generally not mandated, the most important documents are:

  • offer letter / employment contract
  • employee handbook / HR policy
  • leave application guidelines
  • CBA (if applicable)

Key points to check:

  • When leave starts accruing (Day 1? after 3 months? after 6 months? upon regularization?)
  • When leave becomes usable
  • Whether leave is earned monthly (accrual) or front-loaded annually
  • Whether unused leave is forfeited, carried over, or converted to cash
  • Any probationary restrictions (e.g., “no leave convertible during probation”)

8.2 Company practice can become enforceable

If an employer has consistently granted VL/SL in a specific way over a long period, employees may argue it has become a company practice that cannot be unilaterally withdrawn or reduced, especially if it is:

  • deliberate,
  • consistent and repeated over time,
  • not a mere error, and
  • beneficial to employees.

9) Common leave designs employers use (and what they mean for a 6-month employee)

9.1 “Front-loaded” annual leave

Example: “Upon regularization, employee receives 10 VL and 10 SL credited for the year.”

  • At 6 months (often regularization point), the employee may receive an annual grant.
  • Policy may prorate depending on hiring date.

9.2 “Accrual” leave

Example: “Employee earns 1.25 leave days per month.”

  • At 6 months, the employee may have accrued a balance (e.g., 7.5 days), but usability may depend on probationary rules.

9.3 “Combined PTO” or “leave bank”

Example: “15 days paid time off usable for any purpose.”

  • This often satisfies SIL equivalence and goes beyond it.

9.4 “SIL compliance only”

Example: “5 days paid leave after 1 year.”

  • In this model, at 6 months, the employee may have no paid leave yet (unless policy grants earlier access).

10) Pay treatment, documentation, and disputes

10.1 Payment during leave

If leave is paid under policy/statute:

  • the employee is typically paid their daily rate for the leave day.
  • the computation can be sensitive for employees with variable pay components (commissions, incentives), depending on policy and labor standards rules on what counts as the “regular wage.”

10.2 Medical documentation for SL

Most employers require:

  • medical certificate for SL beyond a threshold (e.g., 2 consecutive days) or for specific illnesses.
  • fit-to-work clearance in certain cases.

Policy requirements must be reasonable and applied consistently.

10.3 Denial of leave

Employers may regulate scheduling for VL (business necessity), but rules should be:

  • consistent,
  • not arbitrary or discriminatory, and
  • compliant with any agreed standards in the handbook/CBA.

11) Practical conclusions for employees at the 6-month point

  1. Do not assume a legal right to paid VL/SL at 6 months in the private sector.

  2. Check if you have become regular at around six months; many leave benefits start then by policy.

  3. Check your handbook/contract/CBA for:

    • accrual start date
    • eligibility to use leave
    • conversion/carryover rules
  4. Know the statutory floor: for covered employees, SIL is 5 paid days after 1 year, unless a more generous plan already exists.

  5. If you qualify for special statutory leaves, those may apply regardless of 6 months, subject to eligibility conditions.

12) Employer compliance perspective

For employers designing leave programs:

  • Ensure at least SIL compliance for covered employees (or an equivalent benefit).

  • Define clearly:

    • accrual mechanics
    • probationary treatment
    • documentation standards
    • conversion/carryover limits
  • Apply rules consistently to avoid claims based on discrimination or enforceable company practice.

13) Quick reference: “After 6 months, what am I entitled to?”

  • Paid VL: usually policy/contract/CBA-based, not automatically required by national law at 6 months.
  • Paid SL: usually policy/contract/CBA-based, not automatically required by national law at 6 months.
  • SIL (5 days paid leave): generally relevant after 1 year for covered employees; may be met through an equivalent leave plan.
  • Special leaves (maternity/paternity/solo parent/VAWC/special leave for women, etc.): depend on eligibility and circumstances, not simply length of service.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.