Unused SIL conversion

How it works

Count the unused statutory days. Multiply by the correct daily factor for a monthly-paid employee. Put it on the December payroll or on the final-pay computation. Company VL above SIL may have a different policy. Do not mix the banks to zero out the statutory piece. A quitclaim that waives unpaid SIL is a document a lawyer will read unkindly if the cash was clearly due. Philippine remote hiring makes this concrete because the worker is on a peso file while the manager sits in U.S. Slack. Write the rule into the contract and the payroll calendar before the first cutoff. Do not invent a U.S. substitute and hope DOLE never reads the payslip. Loaded cost moves when this line moves. The local employer, not the founder’s inbox, has to run the actual remittance or the actual notice.

Example: monthly ₱48,000, daily factor using ₱48,000 × 12 / 313 ≈ ₱1,840. Three unused SIL days ≈ ₱5,520 on final pay.

How it differs

Final pay is the envelope. SIL is the leave. 13th month is another line in the same envelope.

Common errors

Forfeiting unused SIL by silence. Using 365 as the divisor without a documented policy.

In practice

Treat Unused SIL conversion as a week-one operating object. Look at the next peso payslip and the next remittance file. If this word does not show up there, the quote from the sales call is incomplete. Write an owner - founder, local employer, or worker - and a date you will look at it again: first cutoff, first holiday, or first miss. If nobody can show a contract clause, a payslip line, a calendar block, or a checklist box, you do not have unused sil conversion yet. You have a conversation. Convert the conversation before the person starts, while changing the deal still costs a paragraph rather than a resignation. Re-read the worked example above against the actual hire in front of you. If the numbers in that example cannot be swapped for this seat’s pesos, hours, and start date, the brief is still unfinished.