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Service Incentive Leave Pay Formula:
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Service Incentive Leave (SIL) is a benefit granted to employees in the Philippines who have rendered at least one year of service. It entitles them to five days of leave with pay, which can be monetized if not used.
The calculator uses the Service Incentive Leave formula:
Where:
Explanation: The calculation multiplies the daily rate by 5 days to determine the total leave pay entitlement.
Details: Accurate calculation of service incentive leave pay ensures compliance with Philippine labor laws and proper compensation for employees who have completed at least one year of service.
Tips: Enter the employee's daily rate in Philippine Pesos (PHP). The value must be greater than zero to calculate the proper leave pay amount.
Q1: Who is entitled to Service Incentive Leave?
A: Employees in the Philippines who have rendered at least one year of service are entitled to five days of service incentive leave with pay.
Q2: Can unused leave be converted to cash?
A: Yes, if the employee does not use the leave credits, the employer must pay the monetary equivalent of the unused leave.
Q3: How is the daily rate calculated?
A: The daily rate is typically based on the employee's monthly salary divided by the number of working days in a month, or as specified in the employment contract.
Q4: Are all employees entitled to this benefit?
A: Most regular employees are entitled, but some exceptions may apply such as those who are paid on purely commission, task, or piecework basis.
Q5: When should leave pay be computed and paid?
A: Leave pay should be computed at the end of each year of service and paid either when the leave is taken or upon separation from employment for unused leaves.