Guidelines on Terminal Leave Benefits Funding

The circular directs computation of TLB pursuant to Section 40 of CSC MC No. 14.
The circular provides that computation of TLB and MLC shall follow Memorandum Circular (MC) No. 14, s. 1999 of the Civil Service Commission (CSC), effective January 1, 2002.
The circular ties the wage-rate reference to Section 7 of RA 6758 by using the twenty-two (22) working days per month only for daily wage rate determination.
The circular uses EO 292 as the basis for ten (10) legal holidays in the constant-factor derivation.
The circular bases the operational computation framework on the enumerated constant factor derived through the days-in-year formula shown.

The circular provides that the twenty-two (22) working days per month referred to under Section 7 of RA 6758 are used only in determining the daily wage rate of monthly rates in the Salary Schedule.
The circular requires that, effective January 1, 2002, computation of TLB and MLC follows CSC MC No. 14, s. 1999 through the computational rules it incorporates.
The circular establishes that the computational formula uses the employee’s highest monthly salary, accumulated vacation and sick leave credits, and a fixed constant factor.

The circular defines TLB as Terminal leave benefits and states TLB is computed using: TLB = S x D x CF (Section 3.1.1).
The circular defines S as the Highest monthly salary received.
The circular defines D as the Number of accumulated vacation and sick leave credits.
The circular defines CF as a Constant factor with value .0478087.
The circular states the equivalent number of days in a month for TLB computation is 20.91667.

The circular requires TLB computation to follow TLB = S x D x CF, with CF = .0478087.
The circular states CF was derived using: 365 = days in a year, 104 = Saturdays and Sundays in a year, and 10 = legal holidays under EO 292, applying the formula shown to yield .0478087.
The circular requires that the monetization of leave credits be computed using the above formula.
The circular standardizes TLB and MLC computation to operate using the same constant factor and the same input components: highest monthly salary, accumulated vacation and sick leave credits, and CF.

For TLB, the circular sets different funding rules for NGAs, GOCCs, GFIs, and LGUs.
For NGAs, the circular provides that in CY 2002, the cost to implement the circular is charged against the agency’s lump-sum appropriation for TLB.
For NGAs, the circular requires that any deficiency in CY 2002 shall be charged against savings.
For NGAs, the circular requires that CY 2003 onwards provide the full requirement for TLB as computed under this circular in the General Appropriations Act.
For GOCCs, GFIs and LGUs, the circular provides that in CY 2002, the cost to implement the circular is charged against their respective corporate and local funds appropriated for TLB.
For GOCCs, GFIs and LGUs, the circular requires that any deficiency in CY 2002 shall be charged against their respective savings.
For GOCCs, GFIs and LGUs, the circular requires that CY 2003 onwards provide the full requirement for TLB under the circular in their respective budgets.

The circular provides that funding for MLC shall be charged solely from the savings of the entity concerned.

The circular requires that the Head of entity concerned be held personally liable for any payment of TLB and MLC that is not in accordance with the circular’s provisions.
The circular states that such personal liability does not prejudice the refund of any excess payment by the employee concerned.

The circular provides that it **takes effect on January 1, 2002.
The circular’s computation rule for TLB and MLC applies effective January 1, 2002.