Leave Credits for AFP Personnel

The decree addresses the forfeiture of leave credits beyond the maximum period authorized under Section 286 of the Revised Administrative Code, as amended by Republic Act No. 1081.
Republic Act No. 1081 is expressly referenced as the amendment to Section 286 forming the prior maximum rule affected by this decree.

The decree is grounded on the continuing need for AFP personnel services to preserve peace and order nationwide and to support government objectives.
The decree establishes a leave-credit framework allowing AFP officers and enlisted personnel to accumulate or commute unused leave credits under specified conditions.

The decree applies to officers and enlisted personnel of the Armed Forces of the Philippines.
The leave-credit benefits cover vacation leave credits and sick leave credits.

Section 1 entitles AFP officers and enlisted personnel to accumulate vacation and sick leave credits in excess of ten (10) months.
Section 1 provides a transitory ceiling for active-service personnel: those already in active service who have accumulated more than ten (10) months vacation and sick leave credits are entitled to only ten (10) months of such leave credits on the date of effectivity.

Section 2 entitles an AFP officer or enlisted person who, due to exigencies of the military service, is prevented from going on leave to commute whatever leave credits he has earned and receive the cash value while still in the active service.
The commutation under Section 2 requires that the personnel have at least five (5) months leave credits that he cannot commute.
Section 2 limits cash commutation to not more than two (2) months leave credits per year.
Section 2 preserves an option: the excess leave credits do not prejudice the military personnel’s choice to continue rendering work and be entitled to pay and allowances, or to enjoy leave by utilizing leave credits not otherwise commuted.

Section 3 entitles an AFP officer or enlisted person who voluntarily resigns or is retired or discharged from the service through no fault of his own to the commutation of all accumulated vacation leave and sick leave to his credit.
Section 3 caps the commutable total: the total vacation leave and sick leave that can be commuted shall, in no case, exceed ten (10) months.

Section 4 requires the Secretary of National Defense to formulate and adopt a systematic and integrated program of leaves due AFP officers and enlisted personnel.
The program in Section 4 must be geared primarily towards the actual enjoyment of leaves by military personnel.
Section 4 directs that the program must align with the basic philosophy of the Leave Law and, in the alternative, must provide for entitlement to commutation of unused leaves under the decree.
Section 4 authorizes the Secretary of National Defense to adopt the needed rules and regulations.

Section 5 appropriates from the funds in the National Treasury not otherwise appropriated such sums as are necessary to carry out the decree’s purpose.
Section 5 authorizes the Secretary of National Defense to use savings of the Armed Forces of the Philippines for the same purpose.
Section 5 requires that after use, the same sums be included in the yearly appropriation of the Armed Forces of the Philippines.

Section 6 modifies any provision of law, rules, or regulations inconsistent with the decree accordingly.