MANILA - The House of Representatives has approved on third and final reading a bill seeking to require an annual 10-day incentive leave with pay for workers.

The final vote for House Bill No. 6770 came down to 203 voting for the measure, and no objections and abstentions.

The proposed amendment to the Labor Code provides that every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of 10 days.

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The provision shall not apply to those who are already enjoying such benefit, those enjoying a vacation leave of at least 10 days with pay, and those in establishments regularly employing less than 10 people or in those exempt from granting this benefit by the Labor Secretary after considering the viability or condition of such establishment.

Baguio City Rep. Mark Go, principal author of the bill, said the grant of paid leaves is beneficial for employees and economically advantageous for employers.

“The granting of such incentive boosts the morale and satisfaction of employees which is manifested in their increased productivity," he said.

"Leave credits also minimize the risks of health and safety issues among employees which may be even costlier for both employers and employees in the long run."

SOURCE: ABS-CBN