Leave Credits Computation Calculator (Philippines)

How the leave credits computation works

Every leave balance on a payslip or HR portal is the result of the same small sum: what you earned this leave year, plus what you were allowed to carry from last year, minus what you already used. The calculator works it out separately for two buckets, because the law treats them differently: the vacation-type bucket (statutory SIL or the company vacation leave that replaces it) and company sick leave. It then values the days that can be converted to cash.

1. 1

   1. Decide which leave rule applies to you

   If your company gives fewer than 5 days of paid vacation leave a year and you are not in an excluded group, the statutory service incentive leave applies: 5 days a year with pay. If your company gives 5 or more days of paid vacation leave, that leave stands in place of SIL and the company's own rules (how many days, whether they convert) govern. Sick leave is not required by the Labor Code; it exists only if your employer grants it.

2. 2

   2. Count your full months of service

   Count whole months from your hire date to the as-of date. Someone hired June 1, 2021 has 64 whole months on October 23, 2026 (the 65th month would complete on November 1). For SIL, nothing is earned until the first anniversary, June 1, 2022 in this case, because Art. 95 requires at least one year of service.

3. 3

   3. Work out what you earned this year

   Monthly accrual: yearly days × months completed this calendar year ÷ 12. Fifteen days of vacation leave with nine months completed (January to September) gives 15 × 9 ÷ 12 = 11.25 days. Lump sum: the full yearly allotment lands on your service anniversary, so before the anniversary date you have nothing new for the year and after it you have the full amount.

4. 4

   4. Add carry-over, subtract leave used

   Add any days your company let you carry over from last year (SIL is normally converted to cash at year end, so carry-over is a policy choice, not a legal right). Subtract the days you already filed and took this year. The result is your balance today. The calculator also projects the balance to December 31, assuming you take no more leave.

5. 5

   5. Value the convertible days

   Cash value = convertible days × daily rate. If you are monthly-paid, the daily rate is monthly salary × 12 ÷ the day factor your payroll uses (261, 303, 313 or 365). The calculator multiplies the monthly salary by 12 and by the days before dividing, then rounds once, the same way our final pay calculator does. Only convertible days are valued: all unused SIL, and company leave only to the extent your policy converts it.

Two assumptions are built in and shown with every result. First, the leave year is the calendar year, January to December, because that is how most Philippine payroll systems reset balances and how the implementing rules describe conversion of unused SIL at the end of the year. If your company runs leave on a fiscal year or on your anniversary year, the totals for a full year are the same but the split between this year and last year will differ. Second, on monthly accrual, a month counts only once it is complete; partial months are ignored until they finish.

Worked examples of leave credits computation

The three examples below were run through the calculator above and the test suite checks that the page and the calculator agree to the centavo. Days are shown to two decimal places; peso amounts are computed from the monthly salary in one step and rounded once.

The ₱4,597.70 year-end figure is the same as the unused SIL line in Example 1 of our final pay calculator: four unused SIL days on a ₱25,000 salary and a 261-day factor. If Maria Clara resigns before December, the convertible amount is whatever balance she has on her last day, and it goes into her final pay together with her pro-rated 13th month.

Why the gap? On monthly accrual, the worker's first five days vest on the first anniversary (they were earned by the whole first year) and then 5/12 of a day is added for each month after that, so by October she already has a share of her second year. On lump-sum crediting, the second year's five days arrive only on August 1, 2027. Neither method is wrong; the implementing rules allow SIL to be availed of and commuted on a pro-rata basis, and the total over a full year is the same. Ask HR which one appears in your handbook so your figure matches the payroll.

If the same company's handbook said only five unused vacation leave days convert each year, the cash value today would drop to 5 × ₱480,000 ÷ 313 = ₱7,667.73 and the rest would follow the policy (carry-over or forfeiture). Choose "Only up to 5 days" in the calculator to see that. Some lawyers argue that at least five days of the vacation leave that replaces SIL should always be convertible, because that leave is doing the job SIL would otherwise do; DOLE has not settled this in a rule we could confirm, so if your company forfeits everything, ask HR to put the policy basis in writing or call DOLE hotline 1349.

Monthly accrual vs lump sum leave credits

Some companies mix the two: vacation leave accrues monthly, but sick leave is credited in full every January 1. Others grant leave only after regularization (often after six months of probation) and then credit it monthly. If your company does that, put your regularization date in the hire date box for company leave and run SIL separately with your real hire date, because the one-year SIL clock runs from the day you started working, probation included.

Who gets service incentive leave and who does not

SIL is the only paid vacation-type leave the Labor Code requires of most private employers. It is short, but it matters most to rank-and-file workers in smaller companies, retail, food service and agency work, where there is often no other paid leave. Read the full rules on our service incentive leave guide; the short version for using this calculator is below.

Treating one to four days of company vacation leave as part of the five SIL days is an assumption, not a quoted rule: Art. 95 only says that those already enjoying vacation leave with pay of at least five days are excluded. A company that gives three days of vacation leave has not met that threshold, so the worker must end up with at least five paid days. Whether the employer adds two more days or gives five SIL days on top of the three depends on how the policy is written; if your policy is unclear, ask HR in writing.

Vacation leave conversion and unused leave conversion: what turns into cash

Unused leave conversion is usually done once a year. Many companies pay it in the January payroll for the previous year, or include it with the 13th month in December; others pay it only when you leave. The implementing rules of Art. 95 say unused SIL is commutable to its money equivalent at the end of the year, and the Supreme Court in Auto Bus Transport Systems v. Bautista (G.R. No. 156367, May 16, 2005) explained that the employee may choose to use the leave or have it paid. Converted leave is not part of the basic salary used for 13th month pay.

Which rate is used for conversion?

The usual practice, and what the calculator does, is to value unused days at your current daily rate. If you got a raise in the middle of the year, use your salary on the date the leave is converted, not the rate when the days were earned. Allowances that are not part of basic pay are normally left out; if your company's policy includes some allowances in the leave rate, add them to the daily rate box instead of using the monthly salary option.

Day factors used to turn a monthly salary into a daily rate

The factor makes a real difference: one unused leave day on a ₱25,000 salary is worth ₱821.92 with the 365 factor and ₱1,149.43 with the 261 factor. Employees paid for every calendar day, including rest days and holidays, are usually on 365; a Monday-to-Friday office worker paid only for workdays and regular holidays is usually on 261. If HR's cash conversion differs from yours by the same percentage on every line, the factor is the reason.

Your leave credits when you resign or are separated

1. Before you file your resignation

   Run this calculator with your planned last day as the as-of date. Decide whether to use the remaining days during your notice month or have them paid out.

2. During the 30-day notice period

   Some companies let you offset unused leave against the notice period; others require you to render the full month. Get the arrangement in writing.

3. Last day of work

   Your leave balance is frozen. Unused SIL, and company leave your policy converts, becomes a line in your final pay.

4. Within 30 days after your last day

   Final pay, including the cash value of unused convertible leave, is due under DOLE Labor Advisory No. 06, s. 2020.

5. Day 31 onward

   Send a written demand; if unpaid, file a free SEnA Request for Assistance at DOLE.

6. Up to 3 years after the claim arises

   Labor Code Art. 306 (formerly 291): money claims are barred if not filed within three years from when the cause of action accrued.

When you leave mid-year, the only figure that matters is the balance on your last day. On monthly accrual, that is the months you actually completed. On lump-sum crediting, it depends on whether your anniversary fell before your last day; if your handbook credits the full year in advance and you leave early, some companies deduct the unearned part, which they may do only if the policy you signed says so. Put your last day in the as-of box and copy the convertible days into our final pay calculator, which also adds your pro-rated 13th month. If you are retiring, unused SIL is separate from the 5 SIL days already built into the 22.5-day retirement formula; see the retirement pay calculator.

What to do if HR says you have no leave credits

1. 1

   Ask for your leave ledger

   Request a printout of your leave ledger for the year: days credited, days used, and dates. Most HRIS systems produce it in minutes. Compare it with the calculator line by line.

2. 2

   Check the basis of any exclusion

   If HR says you are not entitled to SIL, ask which exclusion it relies on: fewer than 10 employees, managerial status, field personnel, or 5+ days of vacation leave already given. Each has a specific meaning in the implementing rules and case law.

3. 3

   Write a short demand

   Ask in writing for the cash value of your unused SIL for each year it was not given or paid, with your computation attached. A clear table of years and amounts helps.

4. 4

   File a SEnA request

   If there is no answer, file a free Request for Assistance under the Single Entry Approach at the DOLE office nearest you or online through DOLE ARMS. See how to file a DOLE complaint for the documents to bring.

Keep the three-year limit in mind. In Auto Bus Transport Systems v. Bautista, the Supreme Court held that the three-year prescriptive period for an SIL claim runs from the time the employer refuses to pay its money equivalent after a demand for commutation, or from the termination of employment, as the case may be. That is why an employee who quietly let SIL go unpaid for years may still claim it on separation. Do not rely on that indefinitely: put your demand in writing and keep proof of when you sent it.

Leave that does not come out of your leave credits

Several leaves under special laws are separate benefits, not deductions from your SIL or vacation leave balance. Do not subtract them in the "used this year" box. The days below come from our rates module, the single source the employment pages use for statutory figures.

Common leave credits mistakes

Other names people search for

Government workers searching for "monetization of leave credits" are under Civil Service Commission rules, which this calculator does not apply. For private-sector rules on every topic from hiring to separation, start at the employment hub or open the Labor Code index.