Short answer. Yes. Article 199 provides that income benefits are payable to an employee who is entitled to receive wages, salaries or allowances for holidays, vacation or sick leaves, or any other benefit under a collective bargaining or other agreement. Company-paid leave does not displace the statutory benefit.
What the law says
Income benefits shall, with respect to any period of disability, be payable in accordance with this Title to an employee who is entitled to receive wages, salaries or allowances for holidays, vacation or sick leaves and any other award of benefit under a collective bargaining or other agreement.
Labor Code, Article 199 — Earned Benefits. Read the full provision →
The article exists to prevent one particular deduction
Left unaddressed, the argument writes itself: you are not actually losing income this month, because the company is still paying you, so nothing is owed. The Code refuses that. It says income benefits shall be payable with respect to any period of disability to an employee who is entitled to leave pay, which only makes sense if the two are meant to run together. The benefit is not a means-tested top-up measured against what else happens to be arriving in your payslip that fortnight. It is payable on its own terms.
Agreed benefits are covered as well as statutory ones
The provision does not stop at holidays, vacation and sick leave. It extends to any other award of benefit under a collective bargaining or other agreement, which is broad enough to take in a company sick-pay scheme, a negotiated illness allowance, or a benefit conferred by long-standing practice rather than by statute. That matters because employers with the more generous packages are the ones most tempted to treat their own scheme as a substitute. Under this article, a better company benefit is a reason you receive more, not a reason the statutory benefit is withheld.
What the article does not decide
It is about the payability of the income benefit, and nothing else. It does not tell your employer how to administer leave credits, it does not create leave where your contract or a collective agreement gives you none, and it does not settle whether a particular period counts as a period of disability at all — that is a medical and administrative question answered elsewhere. So the right way to use this provision is narrowly: it answers the objection that you cannot have both, and it leaves the separate questions to be argued on their own footing.
Get any instruction to choose in writing
If you are told to use up leave credits first, or to elect between the two, ask for that in writing and keep it, because a verbal instruction of this kind is rarely repeated once it is challenged. Keep your leave applications and approvals, the payslips showing leave pay for the same period, and the medical certification covering the disability. Match the dates so it is clear which days are in question on both sides. Take that set to a lawyer if the benefit is refused on the ground that you were being paid anyway.