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Questions and Answers
What is the purpose of Service Incentive Leave?
What is the purpose of Service Incentive Leave?
How many days of paid leave must employers provide to their employees as mandated by the Philippine Labor Code?
How many days of paid leave must employers provide to their employees as mandated by the Philippine Labor Code?
What is a key difference between Service Incentive Leave and Sick Leave/Vacation Leave?
What is a key difference between Service Incentive Leave and Sick Leave/Vacation Leave?
What happens to the Service Incentive Leave benefit every year?
What happens to the Service Incentive Leave benefit every year?
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How is the basis for Service Incentive Leave computation determined?
How is the basis for Service Incentive Leave computation determined?
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What is unique about the purpose of using Service Incentive Leave?
What is unique about the purpose of using Service Incentive Leave?
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How is the service incentive leave credit computed?
How is the service incentive leave credit computed?
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What is the condition for converting service incentive leave to cash?
What is the condition for converting service incentive leave to cash?
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How much is the money equivalent of a service incentive leave?
How much is the money equivalent of a service incentive leave?
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What happens to the service incentive leave credits when an employee resigns?
What happens to the service incentive leave credits when an employee resigns?
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How often is the service incentive leave renewed?
How often is the service incentive leave renewed?
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What is the purpose of the service incentive leave?
What is the purpose of the service incentive leave?
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What is the equivalent of 2.5 prorated service incentive leave credits?
What is the equivalent of 2.5 prorated service incentive leave credits?
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How long must an employee have rendered service to the company to be qualified for Service Incentive Leave?
How long must an employee have rendered service to the company to be qualified for Service Incentive Leave?
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What is the total amount of Service Incentive Leave benefit awarded to qualified employees?
What is the total amount of Service Incentive Leave benefit awarded to qualified employees?
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Who is exempt from the application of Service Incentive Leave?
Who is exempt from the application of Service Incentive Leave?
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What is the basis for counting the one-year service period for Service Incentive Leave?
What is the basis for counting the one-year service period for Service Incentive Leave?
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What happens to the service incentive leave benefit if an employee takes a maternity leave?
What happens to the service incentive leave benefit if an employee takes a maternity leave?
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Study Notes
Purpose of Service Incentive Leave
- Serves as a benefit for employees to take time off from work while still receiving pay.
- Encourages employee well-being and work-life balance.
Mandatory Leave Requirements
- Philippine Labor Code mandates employers to provide a minimum of five days of paid leave per year.
Comparison with Other Leave Types
- Unlike Sick Leave/Vacation Leave, Service Incentive Leave is specifically for general use without the need for a specific reason.
Annual Benefits and Credits
- Service Incentive Leave benefits do not accrue indefinitely; they reset each year, meaning unused leave may not carry over.
Computation of Leave
- Service Incentive Leave credit is computed based on the employee's length of service and is prorated for those who have not completed a full year.
Unique Purpose of Use
- Specifically designed for general leave purposes, allowing employees flexibility without needing to provide reasons for absence.
Credit Calculation
- The service incentive leave credit is calculated as a fraction of a year worked, typically translating to 5 days for each full year.
Cash Conversion Conditions
- Employees can convert service incentive leave into cash if they have unused leave at the end of the year or upon separation from the company.
Money Equivalent
- The monetary equivalent of service incentive leave is typically calculated based on the employee’s daily wage multiplied by the number of unused leave days.
Unused Leave upon Resignation
- When an employee resigns, any remaining service incentive leave credits are usually converted to cash.
Renewal Frequency
- Service Incentive Leave is renewed on an annual basis, resetting to the mandated number of days.
Qualification Duration
- Employees must have rendered continuous service of at least one year to qualify for Service Incentive Leave.
Awarded Benefits
- Qualified employees are awarded a total of 5 days of Service Incentive Leave as mandated by law.
Exemptions
- Certain employees, such as those working in government, or those already covered by a similar leave policy, are exempt from Service Incentive Leave provisions.
Counting the Service Period
- The one-year service period for Service Incentive Leave is counted from the time the employee begins working until they leave or the year resets.
Maternity Leave Impact
- Taking maternity leave does not negatively affect an employee’s entitlement to Service Incentive Leave; it continues to accrue as normal during that period.
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Description
Test your knowledge on Service Incentive Leave, a mandatory leave benefit in the Philippines. Learn how it differs from Sick Leave and Vacation Leave. Understand the benefits and rules according to the Philippine Labor Code.
