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27 June 2006

Ref. No. HBA-2006-17


SUBJECT: Guidelines for Monetization of Leave Credits

Attached is the system-wide guidelines for monetization of leave credits approved by the President upon the recommendation of the President's Advisory Council on 21 June 2006.

For your information and guidance.

Officer-in-Charge, OVCA


(Approved by the President upon the recommendation of the President's Advisory Council on 21 June 2006)

Since 2000, UP System and its Constituent Units have granted a series of monetization of leave credits ranging from 10 to 100 days to qualified staff. Although monetization of leave credits is governed by the rules and regulations of the Civil Service Commission and the Department of Budget and Management, there is still a need for the University to establish a set of system-wide guidelines to ensure that university officials and employees enjoy the privilege equally and reasonably.

While it is accepted that the leave credits being monetized are earned by the employees and it is their privilege to seek monetization, it must not be overlooked that unless properly regulated, this can erode the funds of the University. It is prudent, therefore, that while the University looks after the welfare of its employees, it should not forget its own needs.

For the period 2000 to 2005 alone, an average of P 59 M per year have been used for monetization, sourced primarily from the University's savings (see Table 1). The amount required for monetization increased by a factor of 2.3 in 2004 and by 2.5 in 2005 (using 2003 as reference). This apparent increase in funding requirement is attributable to calls made for monetization of 100 days or 50% of leave credits due to health reasons.

This proposal hopes to address the following issues (or variables):

1. the maximum number of days to be monetized per call
2. the frequency of the call for monetization
3.prioritization in the case of limited budget

Two schemes are presented, each illustrating the implication of the above-mentioned variables. In any case, it is recommended that the remaining accumulated leave credits must not be less than what is being applied for.

Scheme A (Regular Cases)

The number of calls will depend on the availability of funds of the Constituent Universities, but not exceeding twice per year provided, that the number of days being monetized does not exceed twenty (20) days.

Scheme B (special Cases)

Depending on the availability of funds of the Constituent Universities, this may be availed of any time of the year but not to exceed a total of fifty (50) days in a given year. However, in extremely meritorious cases due to health reasons and when recommended by a committee of medical experts, the absolute maximum of 100 days or 50% of total leave credits (whichever is lower), may be granted.

Prioritization is necessary so as not to deplete the limited resources of the University. The prioritization criterion due to health, medical and hospitalization reasons is being fine-tuned to ensure the equitable grant of the privilege.


1. Health, medical and hospitalization reasons
Applicants shall be further ranked on the basis of the following:
Priority 1 Applicant with severe/serious illnes (50 days)
Priority 2 Applicant with less severe/less serious medical condition (30 days)
Priority 3 Dependent of applicant with severe/serious illness (25 days)
Priority 4 Dependent of applicant with less severe/less serious medical condition requiring maintenance medication (15 days)

Implementing guidelines for monetization due to health reasons:
1.1 Applicant must submit medical certificate from the Infirmary of Health Service. Accompanying the medical certificate must be proof of existing medical condition, i.e. laboratory results, workup, etc. and estimated cost of medication.
1.2 Determination of priority shall be made based on a set of system-wide guidelines that will be formulated by a System committee composed of representatives from UP PGH and infirmaries/health service of the different CUs.

Note: For the interest and welfare of the applicant, he/she may be reassigned or redeployed should medical findings show that he/she is no longer fit to perform the functions of his/her present position.

Immediate family members refer to:
a. Spouse/child if applicant is Married
b. parent/brother/sister if applicant is Single
c. parent/child if applicant is Single parent
d. or as defined by the CSC

2. Unforeseen circumstances brought about by force majeure
Second priority shall be given to applicants who require financial aid for reconstruction and rehabilitation as a result of calamities, typhoons, fire, earthquake and accidents. A certification from the City/Municipal Engineer's Office or the Barangay Captain in the area where the employee presently resides to affirm that house and/or immediate surroundings require renovations/repairs due to damages brought about by force majeure may be required whenever possible. An applicant is entitled to thirty (30) days.

3. Educational needs
Third priority shall be given to applicants who require financial assistance to meet his/her or the immediate family members' educational needs. An applicant is entitled to twenty (20) days.

4. Payment of mortgage and augmentation of income
Fourth priority shall be given to applicants needing financial assistance for their mortgage and augmentation of income. An applicant is entitled to fifteen (15) days.


1. An employee who wishes to avail of any type of leave monetization should fill-up the application for leave form (CSC Form No. 6) together with the accomplished request for leave monetization form. The required attachment/s provided in this guidelines should be attached.

2. The unit head shall recommend the application for leave monetization. The form and the required attachments should be forwarded to HRDO for certification of leave credits.

3. For regular monetization of leave credits, the HRDO forwards the request to the approving officer (VPA for System Staff) for decision. If disapproved, the request shall be returned to the applicant.

4. For special monetization, HRDO forwards the request to Ad Hoc Committee who will evaluate the request. The committee will recommend approval/disapproval to the approving authority. The approving authority renders his/her decision. If disapproved, the request will be returned to the applicant.

5. The Budget Office issues budgetary clearance.

6. Budget Office forwards the approval to the Accounting Office for disbursement of funds.


The money value of the monetized leave credits (MLC) shall be computed in accordance with Budget Circular No. 2002-1 of the Department of Budget and Management, having a constant factor of: (0.0478087) or:
MLC = salary x number of monetized leave
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