Sick Leave

Income

No provisions could be found within the law which mandate for paid leave in case of sickness. However, employers and the employee are free to agree upon the grant of sick leaves through voluntary employer policy or collective bargaining agreements.

An employee who has paid at least three monthly social security in the twelve month period immediately preceding the semester (6-month period) of sickness or injury and is confined therefore for more than three days (three-day waiting period) in a hospital or elsewhere is paid by employer a daily sickness benefit equivalent to 90% of his or her average daily salary credit for each day of compensable confinement. However, such allowances will begin only after all sick leaves of absence with full pay to the credit of the employee have been exhausted. The Social Security System reimburses the employer 100% of the daily sickness benefits, provided that the said system receives satisfactory proof of such payment and the legality thereof, and the employer has notified the System of the confinement within five calendar days after receipt of the notification from the employee.

The benefit is paid for up to 120 days in a calendar year and the payment period may not exceed 240 days for the same illness. Daily covered earnings are the sum of the six highest months of covered earnings in the 12 months before the six-month period (January–June, April–September, July– December, or October–March) in which the incapacity began divided by 180.

Source: §14 of the the Republic Act No. 8282 (1997) 

Medical Care

Medical benefits for workers are regulated by Philippine Health Insurance Corporation which collects contributions for the medical care program and oversees the provision of benefits. Medical care is however provided by accredited providers. Both the parties contribute 1.25% (total 2.50%) of the insured worker’s salary bracket, according to 25 salary brackets.

The employed persons must have at least three months of contributions in the six months before hospitalization. Self-employed persons and voluntarily insured persons must have at least three months of contributions in the six months before hospitalization if no surgical procedure is involved; nine months in the 12 months before hospitalization if a surgical procedure is involved. Contribution conditions are waived for registered retirees and pensioners, certain categories of people with low or no income, and overseas workers.

Accredited health care providers offer inpatient and outpatient services that are paid directly by the health fund according to a fixed schedule. There is also cost sharing for general and specialist care, hospital care, laboratory and X-ray fees, surgery, and medicine. Inpatient treatment is limited to 45 days a year. Inpatient treatment abroad is reimbursed according to an established fee schedule for claims submitted within 180 days of discharge.

Source: ISSA Country Profile for the Philippines 2016; https://www.philhealth.gov.ph/; Republic Act No. 6111 of 1969 

Job Security

Under the Labour Code, an employer may terminate the services of an employee who has been found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees and that it has been certified by a competent authority that the disease is incurable within a period of six (6) months even with proper medical treatment. Thus, employment of a worker is secure during illness for 6 months.

Source: §299 of the Labour Code, as amended; Department Order No. 147-15 of 2015

Regulations on Sick Leave

  • 608001
  • 608020
  • 608021
  • 608022
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