Authority and reference rule
- CSC Memorandum Circular No. 31 is issued pursuant to Joint CSC-DBM Memorandum Circular No. 1, s. 1991.
- CSC Memorandum Circular No. 31 applies to monetization of leave credits for uniformity in application of the monetization rules.
Policy on monetization limit
- Government officials and employees in the career or non-career service may be allowed to monetize a maximum of ten (10) days leave credits.
- Monetization must follow the guidelines for both application and computation.
Covered employees and leave credits
- The monetization privilege covers government officials and employees in the career or non-career service.
- Coverage includes employees who are permanent, temporary, provisional, or casual.
- The monetization credit limit is ten (10) days.
Application requirements and approval
- Monetization of leave credits must be made using the prescribed leave form, CSC Form No. 6 (revised 1984).
- No inclusive dates may be indicated in item No. 6 (c) of the leave form.
- The number of days applied for must be indicated instead in item No. 6 (c).
- The application for monetization must be approved by the Head of the office concerned.
Computation of money value (10 days)
- The money value of the monetized leave credits is computed using the formula:
- Monthly Salary / 22 × 10 days.
- The divisor used is 22, representing the average working days per month.
- The computation is specifically for the monetization of ten (10) days leave credits.
Tax treatment of monetized leave
- Monetization of leave credits is exempted from income tax.
Adoption and signatory
- The memorandum is adopted on July 23, 1991.
- It is signed by Patricia A. Sto. Tomas, Chairman.