Guidelines on the Grant of Monetization

October 6, 2008 DOF DEPARTMENT ORDER NO. 026-08 ( Declared Repealed by D.O. 29-16) TO : All DOF Officials and Employees SUBJECT : Guidelines on the Grant of Monetization Pursuant to Joint CSC-DBM Circular No. 1 series of 1991 and Joint CSC Circular No. 2 series of 1997 providing Amendatory Rules and Regulations Governing the Monetization of Leave Credits of Government Officials and Employees and in accordance with the provisions of Sec. 22, Monetization of leave credits and Sec. 23, Monetization of 50% or more of vacation/sick leave credits of Rule XVI, of the Omnibus Rules on Leave Implementing Book V of the Administrative Code of 1987, and to ensure equitable payment of monetization of leave credits, this Department hereby adopts the following guidelines on the grant of monetization: I. Definition of Terms a. Regular Monetization refers to the use of vacation leave (VL) credits only provided that at least five (5) days vacation leave credits are retained after the monetization per CSC MC 41 s. 1998. b. Special Monetization refers to the use of accumulated vacation (VL) and sick leave (SL) credits provided that at least fifteen (15) days vacation leave credits and fifteen (15) days sick leave credits or a total of thirty (30) days accumulated leave credits are retained after the monetization. II. Frequency of Monetization Monetization of leave credits of either regular or special monetization shall be allowed once in a calendar year. It shall be paid only at the last quarter of the year when savings for the year can be estimated and almost all mandatory charges such as but not limited to loyalty pay, longevity pay, terminal leave pay, overtime, if any, are already obligated. III. Entitlement to Monetization To qualify for monetization, officials and employees must meet the required number of leave credits earned as of September 30 of the current year as follows: DcHSEa a. For Regular Monetization, officials and employees must have at least fifteen (15) days vacation leave credits. b. For Special Monetization, officials and employees must have at least more than thirty (30) days accumulated vacation and sick leave credits. IV. Application of Monetization a. Qualified officials and employees may apply for monetization of leave credits during the fourth quarter of the calendar year using CSC Form No. 6. b. Application for Regular Monetization does not need approval of the Undersecretary in charge of PDMSG. c. Application for Special Monetization shall be filed together with a letter request subject to approval of the Undersecretary in charge of PDMSG. d. Applications for both Regular and Special Monetization shall be processed on a first-come-first served basis. e. The number of days allowed for monetization of leave credits shall be based on the amount of savings realized in a given calendar year and the total number of qualified officials and employees, and shall be determined using the following formula: Standard CSC Formula: Monthly salary/20.916667 X number of days to be monetized = money value of the monetized leave Number of days to be monetized = estimated/available savings for the year divided by (Total Monthly Salary for Filled Positions/20.916667) For example: a. Total salaries for filled positions P6,944,518.00 b. Factor Rate Provided by CSC 20.916667 c. Estimated/Available Savings as determined by the Budget Division P1,660,040.00 Number of days to be monetized = P1,660,040.00/(P6,944,518.00/20.916667) SCaITA Number of days to be monetized P1,660,040.00/P332,008.00 Number of days to be monetized = 5 days f. In cases of special monetization where an employee needs to monetize leave credits more than what is being allocated per employee, he or she may seek authority to use the allocation of those who will not avail. This constitutes a waiver from the party giving the authority. This Order shall take effect immediately. (SGD.) GIL S. BELTRAN Undersecretary and Officer-in-Charge