Law Summary
Coverage of the Rules
- Applies to all officials, employees, and laborers in national and local government.
- Includes personnel in government-owned and controlled corporations with original charters, state universities and colleges, the judiciary, and the legislative branch.
- Covers employees appointed on permanent, provisional, casual, or temporary status in both career and non-career service.
Definitions of Key Terms
- Monetization of leave credits: Payment of monetary value for accumulated vacation leave without taking leave.
- Accumulated vacation leave: The total vacation leave credits earned by an employee.
Provisions on Monetization of Leave/Service Credits
- Officers and employees across all service types and appointments with at least 15 days of accumulated vacation leave/service credits may monetize a portion.
- Maximum monetization allowed is 10 working days of vacation leave/service credits once per year.
- If an employee does not monetize leave in a given year, the leave credits remain accumulated.
- Employees who monetize 10 days must undergo 5 days forced leave as per EO 1077 dated January 9, 1986.
Provisions for Teachers’ Service Credits
- Teachers with accumulated service credits can also monetize leave credits.
- Service credits must be converted to vacation and sick leave based on the Conversion Rate from CSC MC No. 9, s. 1988.
Restrictions on Monetization
- Employees monetizing leave credits cannot simultaneously go on vacation leave but may go on sick leave.
- Even if an employee has more than 15 days accumulated leave, monetization is limited to a maximum of 10 days.
Funding Mechanism for Monetization
- Payment of monetized leave credits is charged against department or agency savings.
- Agencies must prioritize payment of monetized leave credits when utilizing savings.
- Preference is given to employees below salary grade 19 in availing monetization.
Effectivity
- The Joint Circular took effect immediately upon adoption on June 27, 1991.