Monetization Rules for Gov't Leave Credits

Rule I, Section 1 treats leave laws as social legislations intended to promote the physical and mental well-being of public servants.
Rule I, Section 1 requires leave laws to be responsive with the times and interpreted reasonably in favor of the employee.
Rule I, Section 1 states the objectives of monetization of leave credits as follows:
- It provides necessary additional funds for the employee’s education, health, or other emergency expenses, including expenses of any member of the employee’s family, by allowing monetization of a portion of accumulated vacation leave credits.
- It allows the employee to continue reporting for work and be paid the employee’s salary for services actually rendered even when monetizing vacation leave.
- It authorizes the payment of monetized leave credits.

Rule II, Section 1 applies to all officials, employees and laborers in the national and local governments.
Rule II, Section 1 covers persons in government-owned and controlled corporations with original charters, state universities and colleges, and the judiciary and legislative.
Rule II, Section 1 applies to those appointed on permanent, provisional, casual, or temporary status.
Rule II, Section 1 covers both career and non-career service employees.

Rule III, Section 1(a) defines monetization of leave credits as the payment of the money value of accumulated vacation leave credits without actually going on leave of absence.
Rule III, Section 1(b) defines accumulated vacation leave as vacation leave credits earned by an employee.

Rule IV, Section 1 allows officers and employees in career and non-career service—whether permanent, provisional, temporary, or casual—to monetize a portion of vacation leave/service credits when the employee has accumulated at least fifteen (15) days.
Rule IV, Section 2 limits monetization to a maximum of ten (10) working days of vacation leave/service credits.
Rule IV, Section 2 requires that the privilege be availed only once a year.
Rule IV, Section 3 provides that if an officer or employee does not avail the privilege in a year, it is deemed included in the employee’s accumulated leave credits.
Rule IV, Section 4 states that an officer or employee who avails of the maximum ten (10) days monetized vacation leave/service credits must still go on five (5) days forced leave, as provided under EO 1077 dated January 9, 1986.

Rule V, Section 1 allows teachers who have accumulated service credits to avail of the privilege under the joint circular.
Rule V, Section 1 requires conversion of service credits to vacation and sick leave using the Conversion Rate of Service Credits prescribed in Item 2.2 of CSC MC No. 9, s. 1988.

Restrictions, Funding and Effectivity, Section 1(a) prohibits an employee who avails of monetization from going on vacation leave simultaneous with monetization of leave credits.
Restrictions, Funding and Effectivity, Section 1(a) allows an exception to the simultaneous vacation leave prohibition for employees who go on sick leave.
Restrictions, Funding and Effectivity, Section 1(b) restricts employees with more than fifteen (15) days accumulated vacation leave/service credits to monetizing only up to the maximum of ten (10) days under Rule IV, Section 2.

Restrictions, Funding and Effectivity, Section 2(a) charges funding for monetization implementation against the savings of the department, agency, or local government unit concerned.
Restrictions, Funding and Effectivity, Section 2(a) requires agencies, in utilizing savings, to give priority to payment of monetized leave credits/service credits.
Restrictions, Funding and Effectivity, Section 2(a) mandates that employees holding positions below salary grade 19 are given preference in availment of the privilege.

Restrictions, Funding and Effectivity, Section 3(a) provides that the circular takes effect immediately.
The circular is adopted on June 27, 1991, with signatories Patricia A. Sto. Tomas and Guillermo N. Carague.