SOP Amendment / Addendum

Date : 02/02/2005

SOP Amedment / Addendum No. : AO-2K5-02-001
Title : Monetization of Leave Credits
Digest :

Please be informed of the following policies on leave monetization:

1. As a general rule, employees who have 15 days or more vacation leave credits shall be allowed to monetize under the regular monetization in accordance with Section 22 of the Omnibus Rules on Leave, allowing monetization of minimum 10 (maximum of 30) vacation leave credits in a given year, provided five (5) days VL are retained.

2. Monetization of 50% or more of the accumulated vacation/sick leave credits may be allowed under Section 23 of the Omnibus Rules on Leave for valid and justifiable reasons, such as:

a. Health, medical and hospital needs of the employee and the immediate members of his family;

b. Financial aid and assistance brought about by force majeure events such as calamities, typhoons, fire, earthquake and accidents that affect the life, limb and property of the employee and his immediate family;

c. Education needs of the employee and the immediate members of his family;

d. Payment of mortgages and loans which were entered into for the benefit or which inured to the benefit of the employee and his immediate family;

e. In cases of extreme financial needs of the employee of his immediate family where the present sources of income are not enough to fulfill basic needs such as food, shelter and clothing;

f. Other analogous cases as may be determined by the Civil Service Commission.

However, due to limited funds, the monetization of 50% or more of the total accumulated VL/SL is allowed in NFA only for health, medical and hospital reasons, application of which is approved by the Administrator. Administration of its fund allocation is with DTBFM and processing is centralized at HRMD.

3. A special monetization of not more than 10 days for reasons cited above under Section 23 shall be allowed for employees who are not eligible to avail of the regular monetization; provided, that five days leave credit is retained in the vacation leave balance. If the 5-day VL credits could not be retained due to insufficient VL balance, the special monetization can still be granted chargeable to SL balances.

Illustrations:

1. An employee who has 11 days vacation leave balance and 23 days sick leave balance can avail of the special monetization (SM) computed as follows:

SM = [ (VL - 5 days) x 50 %] + [ SL x 50%]
= [ (11 - 5) x 50% ] + [ 23 x 50% ]
= [ 6 x 50% ] + [ 23 x 50% ]
= 3 + 11.5
= 14.5 days

SM = 10 days (maximum number of days allowed) to be charged as follows:

[ VL = 3 SL = 7]


2. An employee who has 9 days vacation leave and 10 days sick leave balances can only be allowed to monetize 7 days computed as follows:

SM = [ (VL - 5 days) x 50 %] + [ SL x 50%]
= [ ( 9 - 5 ) x 50% ] + [ 10 x 50% ]
= [ 4 x 50% ] + [ 10 x 50% ]
= 2 + 5
SM = 7 days to be charged as follows:
[ VL = 2 SL = 5 ]

3. An employee who has 3 days vacation leave and 10 days sick leave balances can only be allowed to monetize 5 days computed as follows:

SM = [ (VL - 5 days) x 50 %] + [ SL x 50% ]
= [ ( 3 - 5 ) x 50% ] + [ 10 x 50% ]
= [ -2 or 0 x 50% ] + [ 10 x 50% ]
SM = 5 days to be charged as follows:
[ VL = 0 SL = 5 ]

4. An employee with sufficient vacation leave credits which could be used for regular monetization shall not be authorized/allowed to avail of the vacation/sick leave special monetization.

5. In the same manner, employees who availed first of the combined vacation/sick leave special monetization (maximum of 10) may still avail of ther egular monetization provided they have already accumulated at least 15 days vacation leave credits and funds for regular monetization are still available.

6. Processing and approval of applications for the special monetization shall follow that of regular monetization.

7. DTBFM shall remit to the regional offices the funds alloted for regular monetization on a quarterly basis.

8. Heads of offices (departments/executive offices/regional offices/provincial offices) shall be responsible in managing the funds allocated to their offices for leave monetization. They shall formulate a mechanism for scheduling and prioritization of applications for leave monetization of their employees.

Please be guided accordingly.