Quick answer
How much is your unused leave worth?
Formula
Days × daily rate
At your basic rate on the day it is paid
Tax-free vacation leave
12 days
A year, from January 6, 2026 (was 10)
Must be converted by law
5 days SIL
Other leave only if company policy says so
Each unused day is paid at your daily rate. For a Monday-to-Friday schedule (factor 261):
| Unused days | ₱15,000 a month | ₱20,000 a month | ₱25,000 a month | ₱30,000 a month |
|---|---|---|---|---|
| 1 day | ₱689.66 | ₱919.54 | ₱1,149.43 | ₱1,379.31 |
| 3 days | ₱2,068.97 | ₱2,758.62 | ₱3,448.28 | ₱4,137.93 |
| 5 days | ₱3,448.28 | ₱4,597.70 | ₱5,747.13 | ₱6,896.55 |
| 10 days | ₱6,896.55 | ₱9,195.40 | ₱11,494.25 | ₱13,793.10 |
| 12 days | ₱8,275.86 | ₱11,034.48 | ₱13,793.10 | ₱16,551.72 |
| 15 days | ₱10,344.83 | ₱13,793.10 | ₱17,241.38 | ₱20,689.66 |
Don't leave your leave on the table
It's December, or you just filed your resignation, and you still have leave days you never used. Some of them turn into cash. The question is how much, and whether you'll lose some of it to tax.
The math itself is short: unused days times your daily rate. What trips people up is the daily rate, which depends on your salary and your company's factor, and the tax, because vacation leave and sick leave aren't treated the same. This calculator does both and shows you which part is tax-free.
How to use the calculator
Step 1
Enter your basic pay
Choose monthly salary or daily rate and enter your basic pay, without allowances. For a monthly salary, pick the factor your payroll uses.
Step 2
Enter your unused leave
If your company gives vacation and sick leave, enter the unused days from your leave balance. If you only get the 5-day service incentive leave, choose Only the 5-day SIL and enter the months you worked this year and the SIL you already used.
Step 3
Read the cash value
The result shows the total, the daily rate, and how much of it is tax-free.
How leave conversion is computed
Daily rate = monthly basic salary × 12 ÷ paid days in a year
Leave cash value = unused convertible leave days × daily rate
DOLE's rule for SIL is that the cash value uses your salary rate on the date of conversion. So if you got a raise in October and your leave is converted in December, the new rate applies. Most companies use the same rule for vacation leave.
If you only have SIL and worked part of the year, it's prorated: 5 days × months worked ÷ 12. Six months gives you 2.5 days. If you've already used some, subtract them.
Example: 15 vacation leave and 5 sick leave on ₱20,000
Let's say you earn ₱20,000 a month on a Monday-to-Friday schedule, and your company converts both vacation and sick leave. At year-end, you have 15 vacation leave and 5 sick leave days left.
Daily rate = ₱20,000 × 12 ÷ 261 = ₱919.54
Vacation leave: 15 × ₱919.54 = ₱13,793.10
Sick leave: 5 × ₱919.54 = ₱4,597.70
Total = ₱18,390.80
Of that, 12 days of vacation leave, ₱11,034.48, is tax-free on its own. The other ₱7,356.32, the 3 extra vacation days and all the sick leave, counts with your 13th month and other benefits. It stays tax-free only if all of those together are within ₱90,000 for the year.
Which leave must be converted to cash?
Service incentive leave, always. Article 95 of the Labor Code gives 5 days of paid leave a year to employees with at least one year of service. If you don't use it, it must be converted to cash at the end of the year or when you leave. You can use it for vacation or for sickness. Companies with fewer than 10 workers, and those already giving at least 5 days of paid vacation leave, are exempt from SIL itself.
Vacation and sick leave, only if your company says so. The law doesn't require companies to give separate vacation and sick leave, or to convert them. If your handbook, contract or CBA says unused leave is converted, it's an enforceable benefit. If it says unused leave is forfeited or carried over, that usually applies. Ask HR how your 5 days of SIL are covered, because those can't simply disappear.
When you resign, convertible leave is part of your final pay, due within 30 days of your last day. The Final Pay Calculator adds it to your last salary and prorated 13th month.
Is converted leave taxable?
Monetized unused vacation leave of up to 12 days a year is a tax-free de minimis benefit for private employees. That limit was raised from 10 days by BIR Revenue Regulations No. 29-2025, effective January 6, 2026.
Sick leave doesn't have its own de minimis exemption in the private sector, so converted sick leave, and vacation leave beyond 12 days, is usually counted with your 13th month pay and other benefits. Those are tax-free up to ₱90,000 combined for the year. Anything above that is taxed. Government employees follow different rules: their monetized vacation and sick leave credits are tax-exempt.
Questions about leave conversion
How do I compute leave conversion?
Multiply your unused convertible leave days by your daily rate. For a monthly salary, the daily rate is the salary × 12 ÷ 261, 313 or 365. On ₱20,000 a month with factor 261, each day is worth ₱919.54.
How much is 5 days of unused SIL?
5 × your daily rate. On ₱20,000 a month with factor 261, that is ₱4,597.70. On ₱700 a day, it is ₱3,500.
Is my company required to convert unused vacation leave?
Only unused service incentive leave, 5 days a year, must be converted by law. Vacation and sick leave beyond that are converted only if your company policy, contract or CBA says so.
Is converted leave taxable?
Monetized unused vacation leave up to 12 days a year is tax-free for private employees. Sick leave and vacation leave beyond 12 days usually count with your 13th month and other benefits, which are tax-free up to ₱90,000 combined.
What daily rate is used for leave conversion?
Your basic salary rate on the date the leave is converted. If you got a raise before the conversion, the new rate applies. Allowances are usually not included.
How is SIL prorated if I resign mid-year?
5 days × months worked ÷ 12, minus any SIL you already used. Six months gives 2.5 days. Your earned but unused SIL from earlier years should also be paid if it was not converted.
Who is not entitled to SIL?
Employees with less than one year of service, those already getting at least 5 days of paid vacation leave, workers in establishments with fewer than 10 employees, and other groups excluded under Article 95, such as managerial employees and field personnel.
Related calculators
- Final Pay Calculator
Last salary, prorated 13th month and leave when you resign.
- 13th Month Pay Calculator
Check how much of the ₱90,000 limit your 13th month uses.
- Long Weekends Calculator
Or use your leave where it gives you the longest breaks.
- Salary Calculator
Turn a monthly salary into daily and hourly rates.
Sources
- Labor Code of the Philippines, Article 95 (service incentive leave), and its implementing rules
- DOLE Bureau of Working Conditions, Handbook on Workers' Statutory Monetary Benefits: SIL conversion at the salary rate on the date of commutation; factors 261, 313 and 365
- BIR Revenue Regulations No. 29-2025 (de minimis benefits: 12 days of monetized unused vacation leave), effective January 6, 2026
- Republic Act No. 10963 (TRAIN): ₱90,000 ceiling for 13th month pay and other benefits
- DOLE Labor Advisory No. 06, s. 2020 (final pay)