House approves bill increasing paid leave of employees

Aileen Cerrudo

The House of Representatives, on Tuesday (March 3), approved on third and final reading the bill that increases employees’ service incentive leaves.

House Bill 1338 aims to amend Article 95 of Presidential Decree 442 or the “Labor Code of the Philippines” which would increases employees’ service incentive leaves from 5 to 10 days.

Based on the approved bill, the paid leave will only cover employees who have rendered at least 1 year of service. However, the bill excludes individuals employed in an establishment with less than 10 workers. It also excludes employees with at least 10 days of paid vacation leave.

Baguio City Lone District Rep. Mark Go, who authored the bill said the increased paid leave can boost the morale of the employees.

“Such incentives boost the morale and satisfaction of employees which are manifested in increased productivity. Leave credits also minimizes 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 said.—AAC (with reports from Vincent Arboleda)

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