Filipino workers’ paid leave among lowest globally, study says

Filipino workers are entitled to some of the stingiest paid time off in the world, according to a new report by UK-based payroll and HR software provider Moorepay, putting the country behind most of its regional peers in guaranteeing rest days and vacation.

The study, which compared statutory leave entitlements across 187 economies, ranked the Philippines among the lowest globally. While Moorepay said that every country follows its own pattern when it comes to basic paid leave, labor advocates have warned that the lack of generous leave entitlements risks compounding burnout.

When counting both mandated vacation and public holidays, Filipino employees receive just 16 days of leave a year—the fourth-lowest total globally. Only the United States, which guarantees none, fared worse, followed by Japan with 10 days and Guyana with 12.

Within Southeast Asia, the Philippines lags behind Brunei (18), Thailand (19), Malaysia (19), Singapore (19), Vietnam (23), Indonesia (29), Myanmar (32) and Cambodia (40).

Annual leave

On annual leave alone, the Philippines guarantees just five days, the second-lowest in the world after the United States.

At the other end of the spectrum, Yemen offers the most generous statutory leave: 46 days, combining 30 days of annual vacation with 16 public holidays.

“Employers can use this knowledge to ensure their business stays competitive in the recruitment market. The amount of holidays you give as an employer is a major benefit for your employees,” said Michelle Hobson, HR services director at Moorepay.

Top talent

“By offering more than the minimum statutory leave, or offering more than the average pay package for annual leave, you can recruit and retain top talent,” Hobson added.

Looking ahead, Hobson said scant entitlements put extra pressure on employers and HR professionals to decide what their approach to annual leave is.

Not taking breaks, she noted, can lead to employees being stressed and burned out at work. This results in lower productivity and a higher risk of illness and absenteeism.

Paid time off, meanwhile, allows for necessary recuperation and restoring mental resilience, leading to happier employees, fewer sick days and higher levels of productivity.

Source: Inquirer

Corruption-tainted construction industry placed under DTI supervision

Trade Secretary Cristina Roque has assumed direct supervision of the Construction Industry Association of the Philippines (CIAP) “to restore integrity and transparency” amid allegations of irregularities in contractor accreditation.

In a statement on Wednesday, Roque said CIAP and its implementing boards, including the Philippine Contractors Accreditation Board (PCAB), would be placed under her direct supervision.

“Placing them under my direct supervision will ensure that order, transparency and accountability is restored within these agencies,” Roque said.

“Full transparency and cooperation are mandatory, and those who breach the trust and mandate entrusted to us will be held accountable,” she added.

Cleanup imperative

Roque said earlier the DTI would do a “major cleanup” at the PCAB, as the agency initiated a comprehensive investigation into numerous allegations of conflicts of interest, accreditation irregularities and potential abuses of authority.

The agency will thoroughly review the conduct of current PCAB members and officials and submit recommendations to President Marcos, including their potential removal from their posts.

PCAB is an attached agency of the DTI and one of CIAP’s implementing boards, tasked with promoting, accelerating and regulating the construction industry’s growth and development.

Philippine economy now at a ‘sweet spot’

The Philippine economy now sits at a “sweet spot” as inflation remains benign while the country’s banking sector and external position are strong, the Bangko Sentral ng Pilipinas (BSP) said.

“Amid the swirling controversies over corruption, I am pleased to report a piece of good news. We think the economy is in good shape,” BSP Governor Eli M. Remolona, Jr. said during a briefing at the Senate on Monday.

“Indeed, our economy is in what I would call a ‘sweet spot,’ and I think this would help our fiscal strategy (to) make it more effective,” he added.

For the first half, gross domestic product (GDP) growth averaged 5.4%, slower than the 6.2% a year ago.

Inflation averaged 1.7% in the January-July period, below the BSP’s 2-4% annual target.

Mr. Remolona said the central bank tamed inflation with its aggressive rate hikes.

Last week, it cut its key policy rate by 25 basis points (bps) to 5%. The central bank has so far lowered borrowing costs by a total of 150 bps since it began its easing cycle in August 2024.

“This lowering of the policy rate stimulates demand, it helps the economy grow, and because we did it in a very measured approach, it hasn’t led to inflation,” Mr. Remolona said.

He said inflation looks like it will stay within BSP’s 2-4% target range.

The BSP projected inflation to average 1.7% this year, before picking up to 3.3% in 2026 and 3.4% in 2027.

At the same time, Mr. Remolona also attributed the economy’s current state to the “sound” performance of the local banking system.

“The banks have solid balance sheets, assets are growing, deposits are growing, (and) income of banks is growing,” he said.

Mr. Remolona added that banks have maintained enough capital and liquidity.

“Looking at liquidity standards, international liquidity standards, our banks also hold liquidity that far exceeds the international standard,” he said. “At the same time, the loans are not so risky.”

Mr. Remolona also said digitalization and financial inclusion can help increase consumers’ savings, especially in a country where “savings rate tends to be quite low.”

Meanwhile, the BSP chief said the country has “more than enough” international reserves.

At end-July, the country’s gross international reserves slipped to $105.4 billion from $106 billion in June.

Source: Business World