Service Incentive Leave (PH)
Updated November 2026 · Free · No sign-up
Calculate service incentive leave (SIL) — the Labor Code’s floor: 5 paid days per year after one year of service, usable for vacation OR sickness, and convertible to cash if unused at year-end or separation.
Quick answer: SIL: 5 days with pay per year, after 12 months of service (aggregate, broken service counts), usable for any purpose — and the unused balance commutes to cash (daily rate × unused days) at year end or exit. Exempt employers: those already granting 5+ vacation days, establishments with <10 workers, and specific categories.
The Entitlement
| Amount | 5 days/year with pay — the statutory FLOOR (company VLs/SLs of 5+ days satisfy it) |
| Qualifier | At least one year of service — aggregated, even broken periods |
| Use | Any purpose — vacation, sickness, personal; no cause needed |
| Commutation | Unused days convert to CASH at year-end or separation — SIL never just lapses |
| Exempt | Government, kasambahay (own law), managerial staff, field personnel, employers of <10 workers, and those already granting equivalent/better leave |
Worked Examples
Example 1. ₱645 daily, 2 of 5 used: year-end commutation = 3 × 645 = ₱1,935 cash.
Example 2 — the back claim. Never granted SIL for 3 years: 15 days × current daily rate ≈ ₱9,675 — SIL non-payment is among DOLE’s most-found violations in inspections, claimable 3 years back.
Example 3 — the "we have VL" employer. 10 company vacation days: compliant (exceeds the floor) — but check the COMMUTATION: company plans replacing SIL must match its cash-conversion feature or keep 5 convertible days.
Why SIL Punches Above Its Size
It’s the Philippines’ ONLY general statutory leave (no separate sick/vacation floors exist in the private sector) — everything else is contractual or special-law (maternity, paternity, solo parent, VAWC, magna carta for women). In final pay, unused SIL commutation is a mandatory line. DOLE handbook + SEnA for disputes.
Frequently Asked Questions
What is service incentive leave?
The Labor Code’s 5 paid days per year after one year of service — usable for anything, and convertible to cash when unused.
Is unused SIL paid out?
Yes — commutation to cash at year-end or separation is part of the entitlement; lapsing policies violate it.
Who is exempt from SIL?
Employers with fewer than 10 workers, those already granting 5+ equivalent leave days, government workers, managerial staff, field personnel, and kasambahay (separate law).
Does company vacation leave replace SIL?
If it’s at least 5 days with equivalent benefit (including conversion), yes — the floor is satisfied by better plans.
How far back can unpaid SIL be claimed?
Three years — per DOLE money-claim rules; inspection findings routinely order the back commutation.
✓ Formula verified • Last updated: November 3, 2026