Last updated: November 11, 2026

Service incentive leave (SIL) gives covered employees 5 days of paid leave a year after one year of service under Article 95 of the Labor Code. This guide explains who is covered and exempt, how SIL pay and cash conversion work, and gives you a free calculator.

Key Takeaways
  • SIL is 5 days of paid leave a year for employees who have completed at least one year of service (Article 95, Labor Code).
  • Exempt groups include government employees, managerial employees, field personnel, employees of establishments with fewer than ten employees, and those already getting at least 5 days of paid vacation leave.
  • Unused SIL is commutable to its money equivalent at the end of the year and on resignation or separation.
  • SIL pay equals the daily rate multiplied by the days, and it belongs in final pay.

Service Incentive Leave Calculator

Estimate the cash value of unused service incentive leave (SIL). Pro-rating for part of a year is a common payroll practice, so use it only as an estimate.

Daily rate–
SIL days earned–
Unused SIL days–
Cash value of unused SIL–
Enter the monthly salary to see the result.
Estimate only. Article 95 gives 5 days of paid leave a year after one year of service and makes unused SIL commutable to its money equivalent. The proportional method here is a common approach, not spelled out in the article. Not legal advice.

Who Is Entitled to Service Incentive Leave?

Article 95 of the Labor Code gives every covered employee 5 days of paid leave a year after at least one year of service. One year of service means 12 months, whether continuous or broken, and authorized absences, rest days and paid regular holidays count toward it. SIL is a minimum: employers can give more.

Who Is Exempt?

  • Government employees
  • Domestic workers and persons in personal service (kasambahay have their own leave under RA 10361)
  • Managerial employees
  • Field personnel whose time and performance are unsupervised
  • Employees who already enjoy the benefit, or who get at least 5 days of paid vacation leave
  • Employees of establishments regularly employing fewer than ten employees
  • Establishments exempted by the Secretary of Labor

How SIL Pay Is Computed

SIL pay is the daily rate multiplied by the days. For an employee earning ₱25,000 a month on a 313-day factor, the daily rate is ₱958.47. Five SIL days are worth ₱4,792.33. If the employee leaves after 8 months of the leave year, a common pro-rated approach gives 3.33 days, worth ₱3,194.89.

Can Unused SIL Be Converted to Cash?

Yes. Under the implementing rules, SIL is commutable to its money equivalent if it is not used or exhausted at the end of the year. Accrued SIL can also be converted when the employee resigns or is separated, based on the salary rate at that time. Include it in the final pay. Other vacation or sick leave is converted only if company policy, the contract or a collective agreement allows it.

SIL, Vacation Leave and Sick Leave

If your company already gives at least 5 days of paid vacation leave a year, that satisfies SIL, and you do not owe an extra 5 days. The Labor Code does not set a general statutory sick leave, so sick leave depends on company policy. See also maternity leave, paternity leave and solo parent leave, which are separate statutory leaves.

Leave and final pay handled correctly

Asiacruit manages statutory leave, payroll and final pay for every Philippines hire, with or without a local entity.

Explore Employer of Record Philippines

Official sources: DOLE, Article 95 of the Labor Code and Book III, Rule V of its Implementing Rules. Always confirm current rules with the agency before acting.

Frequently Asked Questions

How many days is service incentive leave in the Philippines?

5 days of paid leave a year for covered employees who have completed at least one year of service, under Article 95 of the Labor Code.

Who is exempt from service incentive leave?

Government employees, domestic workers, managerial employees, field personnel, employees who already get at least 5 days of paid vacation leave, employees of establishments regularly employing fewer than ten employees, and establishments exempted by the Secretary of Labor.

Can unused SIL be converted to cash?

Yes. Unused SIL is commutable to its money equivalent if not used or exhausted at the end of the year, and accrued SIL can be converted when the employee resigns or is separated.

How do you compute SIL pay?

Multiply the unused SIL days by the employee’s daily rate. The daily rate is the monthly salary multiplied by 12 and divided by the days-per-year factor your payroll uses, such as 313 or 261.

Is SIL the same as vacation leave?

No, but they overlap. If a company already gives at least 5 days of paid vacation leave a year, that satisfies the SIL requirement, so no extra 5 days are owed.

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