Constant Factor in the Formula for Computing Terminal Leave Benefits and Monetization of Leave Credits

December 21, 2015

CSC RESOLUTION NO. 1501530

AMENDMENT; SECTION 40 OF CSC MEMORANDUM CIRCULAR NO. 14, S. 1999; SECTION 24 OF THE OMNIBUS RULES ON LEAVE

 

WHEREAS, Section 12 (2), Chapter 3, Subtitle A, Title I, Book V of Executive Order No. 292 or the Administrative Code of 1987 conferred on the Civil Service Commission the power and function to "prescribe, amend and enforce rules and regulations for carrying into effect the provisions of the Civil Service Law and other pertinent laws";

WHEREAS, Section 40 of CSC Memorandum Circular No. 14, s. 1999 provides for the constant factor to be used in the formula for computing terminal leave, to wit:

"Section 40. Computation of terminal leave.—

xxx xxx xxx

"The constant factor was derived from this formula:

 

365 = Days in a year
104 = Saturdays & Sundays in a year
10 = Legal holidays in a year (provided by EO 292)
12 = Months in a year
12		12
———————	=	———	=	.0478087
365 - (104 + 10)		251

"This formula shall take effect on January 15, 1999."

WHEREAS, the number of legal holidays in a year in the above constant factor is ten (10) days as provided under Executive Order No. 292;

WHEREAS, Section 24 of the Omnibus Rules on Leave likewise provides for the same constant factor (.0478087) in the computation of leave monetization;

WHEREAS, the Department of Budget and Management issued Budget Circular No. 2002-1 dated January 14, 2002 to prescribe the guidelines on the computation and funding of the Terminal Leave Benefits and Monetization of Leave Credits in conformity with CSC Memorandum Circular No. 14, s. 1999; HEITAD

WHEREAS, Republic Act No. 9849 (An Act Declaring the 10th Day of Zhul Hijja, the 12th Month of the Islamic Calendar, A National Holiday for the Observance of Eidul Adha, Further Amending for the Purpose Section 26 Chapter 7 Book I of Executive Order No. 292, Otherwise Known as the Administrative Code of 1987, as Amended) includes Eidul Adha and Eidul Fitr among the regular holidays being observed in the Philippines;

WHEREAS, with the enactment of RA No. 9849, the number of legal holidays now being observed in the country is twelve (12) days in a year;

WHEREAS, there is a need to change the number of legal holidays in deriving the constant factor to be used in the formula for computing the Terminal Leave Benefits and Monetization of Leave Credits, as follows:

365 = Days in a year
104 = Saturdays & Sundays in a year
12 = Legal holidays in a year (in accordance with RA No. 9849)
12 = Months in a year
12		12
——————	=	———	=	.0481927
365 - (104 + 12)		249

WHEREFORE, in view of the foregoing, the Commission RESOLVES to change the constant factor used in computing the Terminal Leave Benefits (Section 40 of CSC Memorandum Circular No. 14, s. 1999) and Monetization of Leave Credits (Section 24 of the Omnibus Rules on Leave) from .0478087 to .0481927.

All rules, regulations and issuances which are inconsistent herewith are hereby repealed, amended or modified accordingly.

This amendment shall take effect fifteen (15) days from the date of its publication.

Quezon City.

(SGD.) ALICIA DELA ROSA-BALAChairperson

(SGD.) ROBERTO S. MARTINEZCommissioner

(SGD.) NIEVES L. OSORIOCommissioner

Attested by:

(SGD.) DOLORES B. BONIFACIODirector IV

Published in The Philippine Star on January 7, 2016.