House passes bill requiring paid 10-day incentive leave for workers

The House of Representatives approved on third and final reading a bill which seeks to require a 10-day yearly incentive leave with pay for employees, in a bid to “boost the workers’ morale, wellness, and productivity.”

With 203 voting in the affirmative, zero in the negative and no abstention, the lower Chamber passed House Bill 6770, which specifically seeks to amend Article 95 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines.

Once enacted into law, every employee who has rendered at least one year of service would be entitled to a yearly service incentive leave of 10 days, from the current five days.

In an earlier statement, Baguio Rep. Mark Go, who principally-authored the bill, said the prevailing law does not require employers to grant sick and vacation leaves.

The current five-day service incentive leave and other incentives are given based on the prerogative of the employers, either by expressed stipulation on the employees’ contract or through a collective bargaining agreement, he added.

However, the provision would not apply to those who are already enjoying such benefit, those enjoying vacation leave with pay of at least 10 days, and those in establishments regularly employing less than 10 employees or in establishments exempted from granting this benefit by the Secretary of Labor and Employment after considering the viability or condition of such establishment.

Go pointed out that the granting of paid leaves is beneficial to the employees and economically advantageous to the employers.

“The granting of such incentive boosts the morale and satisfaction of employees which is manifested in their increased productivity. Leave credits also minimize the risks of health and safety issues among employees which may be even costlier for both employers and employees in the long run,” he said.   /kga