House OKs bill increasing yearly leave incentives of employees to 10 days
The House of Representatives on Tuesday approved on third and final reading the measure seeking to increase the service incentive leave of employees.
Voting 197-0, the chamber approved House Bill 1338, principally authored by Baguio City Representative Mark Go, Deputy Speaker Luis Raymund Villafuerte, and 12 other lawmakers.
Under the measure, every employee who has rendered at least one year of service will be entitled to a yearly service incentive of 10 days with pay.
Currently, Article 95 of Presidential Decree No. 442 only grants employees with five days of service incentive leave.
Go, in filing the measure, pointed out that with the increase of the number of leave credits left at the discretion of employers, employees are left with no choice but to make do with the leave credits they have, making them vulnerable to sickness and other emergencies.
"The granting of paid leaves is not only beneficial to the employees but economically advantageous for employers as well. Such incentives boost the morale and satisfaction of employees which are manifested in increased productivity," he said.
"Leave credits also minimize the risk of health and safety issues among employees which may even be more costly for both employees and employers in the long run," he added.
Excluded in the coverage of the measure are employees who already get at least 10 days of vacation leave with pay and those employed in establishments with less than 10 workers.
The Department of Labor and Employment is tasked to promulgate the implementing rules and regulations of the measure within 90 days from its effectivity. — BM, GMA News