Guidelines on Terminal Leave Benefits Funding

Use 22 working days per month (as per Section 7 of RA 6758) only for determining the daily wage rate from monthly salary schedules.
Effective January 1, 2002, the computation of TLB and MLC follows Civil Service Commission Memorandum Circular No. 14, series of 1999.

TLB is computed using the formula: TLB = S x D x CF.
- S = Highest monthly salary received.
- D = Number of accumulated vacation and sick leave credits.
- CF = Constant factor of 0.0478087.
The constant factor (CF) is derived from:
- Months in a year divided by number of workable days in a year.
- Workable days = 365 days minus 104 weekend days minus 10 legal holidays (as per EO 292).
- Resulting in approximately 20.91667 equivalent days per month for TLB computation.
Monetization of leave credits uses the same formula and factor as TLB.

For Terminal Leave Benefits (TLB):
- National Government Agencies (NGAs):
  - In 2002, charges to lump-sum appropriations for TLB; deficiencies charged to savings.
  - From 2003 onward, funding to be included in the General Appropriations Act.
- Government-Owned and Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), and Local Government Units (LGUs):
  - In 2002, charged to corporate/local funds appropriated for TLB; deficiencies charged to savings.
  - From 2003 onward, funding to be fully included in their budgets.
For Monetization of Leave Credits (MLC):
- Funding shall come solely from the savings of the respective government entity.

Entity heads are personally liable for payments of TLB and MLC made not in accordance with the Circular.
Employees receiving excess payments must effect refund as necessary.