Question & AnswerQ&A (BUDGET CIRCULAR NO. 2002-1, JANUARY 14, 2002)
The purpose is to prescribe guidelines on the computation and funding of the Terminal Leave Benefits (TLB) and Monetization of Leave Credits (MLC) of government officials and employees.
The 22 working days per month shall be used only to determine the daily wage rate of the monthly rates contained in the Salary Schedule.
TLB is computed as: TLB = S x D x CF, where S is the highest monthly salary received, D is the number of accumulated vacation and sick leave credits, and CF is the constant factor 0.0478087.
CF is derived by dividing the number of months in a year (12) by the number of days in a year minus the sum of Saturdays, Sundays, and legal holidays (251), i.e., CF = 12 / 251 = 0.0478087.
The equivalent number of days in a month for computation purposes is 20.91667 days.
MLC shall be computed using the same formula as TLB: MLC = S x D x CF, where S is the highest monthly salary, D is the number of leave credits, and CF is 0.0478087.
For 2002, the cost shall be charged against the lump-sum appropriation for TLB in the agency budget, with any deficiency charged against savings.
Funding for 2002 shall come from their respective corporate and local funds appropriated for TLB, with deficiencies charged against savings. From 2003 onwards, the full TLB requirement shall be included in their budgets.
Funding for MLC shall be charged solely against the savings of the concerned entity.
The Head of the entity concerned shall be held personally liable for any unauthorized payments of TLB and MLC, without prejudice to the refund of excess payments by the employee.
The Circular took effect on January 1, 2002.
Memorandum Circular No. 14, s. 1999 of the Civil Service Commission sets the standard for TLB computation.