Budget released for monetization of leave credits

CEBU, Philippines - Talisay City Hall employees can now avail of the monetization of their 50 percent of leave credits starting January after the city council approved the 2013 annual budget. 

City Budget Officer Edgar Mabunay yesterday said the government has appropriated P14 million to allow workers to avail of the monetization of vacation and sick leave credits as stipulated in the Joint Memorandum Circular of the Department of Budget and Management and the Civil Service Commission C1-1991.

But Mabunay clarified that only regular employees can avail of the benefits. 

“So starting January, regular employees can start applying for leave benefits,” Mabunay said. 

The monetization of 50 percent or more of the accumulated leave credits may be allowed for valid and justifiable reasons such as health, medical and hospital needs of employee and the immediate members of family; payment of mortgages/loans; educational needs; and financial aid and assistance brought about by force majeure (such as typhoons, fire, quake). 

Monetization is according to the daily rate multiplied by five days.

Monetization of leave credits is practiced to save the government from paying a voluminous amount in one instant or upon resignation of the employee.

An employee earns 2.5 points leave credits for every month; 1.25 for sick leave, and 1.25 for vacation leave, which give a total of 30 days in a year for both sick and vacation leaves.

Section 23 of the Omnibus Rules on Leave, according to the Civil Service Commission, states that monetization of fifty percent of all the accumulated leave credits may be allowed for valid and justifiable reasons subject to the discretion of the agency head and the availability of funds. – (FREEMAN)