Monetization of leave credits postponed

CEBU, Philippines - Talisay City hall employees can avail of the monetization of 50 percent of leave credits next year yet. 

This was the recommendation of the local finance committee to the city council committee on appropriation, budget management and ways & means on the ground that the monetization of leave credits has not been included in the annual budget. 

“The committee recommends that the monetization of vacation and sick leaves of regular employees be deferred for next year,” Councilor Rodi Cabigas, chairman of the committee on appropriation, said. 

Committee report No. 2012-27 was approved by the city council last Tuesday’s council session. 

Earlier, the employees expressed their wish to avail of the monetization of vacation and sick leave credits as stipulated in the Joint Memorandum Circular of the Department of Budget and Management and the Civil Service Commission C1-1991.

The employees pointed out that “there is an urgent need in favor of the educational needs of our immediate members” and “the income is not enough to fulfill the basic needs of our family.” 

Cabigas said the monetization of leave credits was not included in the annual budget for supplemental budget for this year.

He said they already asked the city budget office to appropriate an amount commensurate to the 50 percent vacation and sick leaves of regular employees in the 2013 annual budget. 

Last July 6, the local finance committee had a meeting and recommended that not more than 15 days of vacation and sick leaves should be claimed for monetization, subject to the availability of funds.

Also, the Human Resource and Management Office has the authority to determine the number of personnel who can avail of the monetization, Cabigas said. 

Officials and employees in the career and non-career service whether permanent, temporary, casual or coterminous, who have accumulated 15 days of vacation leave credits shall be allowed to monetize a minimum of 10 days, provided, that at least 5 days is retained after monetization and that a maximum of 30 days maybe monetized in a given year.

Monetization of 50 percent or more of the accumulated leave credits may be allowed for valid and justifiable reasons such as health, medical and hospital needs of employee and the immediate members of his family; payment of mortgages/loans; educational needs; and financial aid and assistance brought about by force majeure (such as typhoons, fire, quake). 

Monetization is according to the daily rate multiplied by five days.

Monetization of leave credits is practiced to save the government from paying voluminous amount in one instant or upon resignation of the employee.

An employee earns 2.5 points leave credits for every month; 1.25 for sick leave, and 1.25 for vacation leave which give a total of 30 days all in a year both sick and vacation leaves.

Section 23 of the Omnibus Rules on Leave, according to the Civil Service Commission, stated that monetization of fifty percent of all the accumulated leave credits may be allowed for valid and justifiable reasons subject to the discretion of the agency head and the availability of funds.