Guidelines on Monetization of Leave Credits

Ask AI

CSC MEMORANDUM CIRCULAR NO. 31: Guidelines on Monetization of Leave Credits

What do you want to know about the law?
Ask AI quickly gives answers based only on the current context to avoid mistakes. Always verify with the original text.

New Chat Started

Ask AI

Title Source: Supreme Court: Guidelines on Monetization of Leave Credits

Law: Csc Memorandum Circular No. 31

Decision Date: Jul 23, 1991

Government officials and employees may monetize up to ten days of leave credits, with specific application guidelines and a tax-exempt formula for calculating the monetary value based on their monthly salary.

Law Summary

Application Procedure

Monetization must be requested using the prescribed leave form: CSC Form No. 6, revised 1984.
The applicant should indicate the number of days to be monetized in item No. 6(c) of the form, without mentioning specific inclusive dates.
Approval of the monetization application must come from the Head of the office concerned.

Computation of Monetary Value

The formula for determining the money value of the leave credits is: Monthly Salary / 22 x 10 days = Money value of the monetized leave
The divisor '22' represents the average number of working days per month.
An example with a monthly salary of P10,000 yields a monetized leave value of P4,545.45.

Tax Exemption

The amount received from the monetization of leave credits is exempt from income tax.

Summary

These guidelines are designed to standardize the monetization process of leave credits for government employees.
The policy ensures uniform application and protects employees' rights to convert unused leave into monetary benefits.
It promotes transparency and accountability by requiring form-based application and official approval.

END